Day trading pre-market open March 21

Morning traders. Thanks loungers, especially @Ravgnome.


Outlook for the day: Positive leading into this morning's February employment report following fresh highs on Wall Street.

ASX futures: up 49 points or 0.64%


Overnight themes:

• US stocks kick to new heights after the Federal Reserve reassures investors it still expects to cut interest rates three times this year.
• All three major stock benchmarks close at record levels as investors breathe a sigh of relief. The Fed leaves the federal funds rate target unchanged, as widely expected, and reaffirms guidance from December showing a majority of policy-makers still see three cuts this year despite recent signs of persistent inflationary pressures.
• The rally intensifies after Fed Chair Jerome Powell tells reporters recent "hot" inflation reports have not altered the central bank's outlook. The data "haven't really changed the overall story, which is that of inflation moving down gradually, on a somewhat bumpy road," he says at a press conference.
• Also helping market sentiment: the bank raises its 2024 growth forecast to 2.1% from 1.4% in December and cuts its unemployment rate outlook to 4% from 4.1%.
• “We had some inflation bumps this year but Jerome Powell’s not blinking. Investors are relieved to see three cuts stay in the dot plot [of economic projections], supporting markets and risk appetite. The Fed might wake up with a hangover, but the punchbowl isn’t going away yet.” - David Russell, global head of market strategy at TradeStation (per CNBC).
• All of the Magnificent Seven group of market leaders advance.
• Growth, financial and industrial stocks outperform. The consumer discretionary sectors gains 1.45%, communication services 1.26%, financials 1.24%, industrials 1.21% and tech 1.15%.
• Two sectors sit out the rally: health -0.23% and energy -0.09%.
• The Australian dollar rises almost 0.9% from a two-week low as the greenback retreats.
• Gold miners rally as the yellow metal jumps more than 1.3% back towards record levels following the Fed news. Futures for the yellow metal, which settled just 0.1% higher at US$2,161 before the policy announcement, rally another 1.33% in recent action to US$2,188.40. The NYSE Arca Gold Bugs Index pops 3.8%.
• “Gold prices are rising as expectations of real interest rates are falling, increasing the relative attractiveness of non-yielding assets like gold” - Will Rhind, chief executive officer and founder of GraniteShares (per MarketWatch).
• Iron ore prices improve for a second day in China amid optimism recent price weakness will encourage steel-makers to resume production. May futures increase 1.23% on the Dalian Commodity Exchange. However, prices in Singapore ease almost 1%.
• Oil backs off five-month highs after two days of strong gains. Brent crude sheds 1.6%.

Key events today:

• Flash manufacturing/services PMIs - 9 am AEDT
• February jobs report - 11.30 am (expected: employment +39,700; jobless rate 4%)
• US flash manufacturing/services PMIs - tonight

S&P 500: up 46 points or 0.89%

Dow: up 401 points or 1.03%

Nasdaq: up 203 points or 1.25%

Dollar: up 0.88% to 65.82 US cents

Iron ore (Dalian): up 1.23% to US$114.39

Brent crude: down US$1.43 or 1.6% to US$85.95

Gold: up US$1.30 or 0.1% to US$2,161

NYSE Arca Gold Bugs: up 3.8%

Bitcoin: up 2.22% to US$65,854

Copper (LME): up 0.11% to US$8,986.80

Nickel (LME): up 1.09% to US$17,570

Uranium (spot price): up 3.26% to US$89

Lithium carbonate (China spot): down 0.07% to US$15,622

Global X Lithium & Battery Tech ETF: up 2.19%

BHP: up 2.03 % (US); up 0.49% (UK)

Rio Tinto: up 1.72% (US); up 0.07% (UK)