Morning traders. Thanks loungers, especially @Ravgnome.
Outlook for the day: Negative following the Dow's worst night this month, declines in key commodities and a sharp drop in index heavyweight BHP.
ASX futures: down 74 points or 0.94%
Overnight themes:
US stocks fell after the minutes from this month's Federal Reserve policy meeting dampened optimism that interest rate cuts were not far off.
The Dow dropped 0.51% or more than 200 points, its heaviest loss of May. The S&P 500 shed 0.27%. The Nasdaq Composite gave up 0.18%.
The record of this month's Fed meeting showed policy-makers were increasingly worried that inflation had stalled in recent months above the central bank's target range. Some officials said they were willing to rates again, if necessary. Ultimately, the central bank voted unanimously to leave rates unchanged at a 23-year high of 5.25 - 5.5%.
“Various participants mentioned a willingness to tighten policy further should risks to inflation materialize in a way that such an action became appropriate,” the minutes said.
Stocks fell and the dollar and treasury yields firmed following the release of the minutes.
Nvidia dragged ahead of the release of Q1 earnings this morning, but jumped in after-market trade after smashing earnings expectations. The chip-maker flipped a 0.46% loss in regular trade to a gain of 6.3% in recent after-market action after announcing a 262% leap in sales from the same period last year as demand for AI chips intensified. Demand for AI chips has made the company the US's third-largest by market cap and fuelled this year's Wall Street rally.
Resource stocks struggled as the US dollar rose. The S&P energy sector shed 1.83%. The materials sector lost 0.99%. Rate-sensitive utilities and real estate also dropped. Havens included health +0.2%, industrials +0.15% and tech +0.07%.
ASX heavyweight BHP slumped more than 4% in overseas trade after Anglo American rejected an improved "final" offer from the Australian miner, but left the door open to an increased bid. Anglo's chairman said the revised $73.9 billion offer "does not meet expectations". The deadline for a new deal is May 29.
US gold miners fell after the yellow metal pulled back sharply from record levels. Gold for June delivery dropped US$33 to US$2,392.90 per ounce. The NYSE Arca Gold Bugs Index slid 3.71%.
A rising US dollar pushed copper and other base metals sharply lower. Copper sank 4.26% in London as record-low US house sales clouded the demand outlook. Sales of new single-family homes were the weakest on record this month, underscoring the impact of higher rates on the US economy.
Iron ore hit a three-month high following China's announcement last week of support for its struggling property market. Ore futures climbed 2.73% to US$127.33 in Chinese trade.
Key events today:
Flash manufacturing/services PMIs - 9 am AEST
Inflation expectations - 11 am
US flash manufacturing/services PMIs - tonight
S&P 500: down 14 points or 0.27%
Dow: down 202 points or 0.51%
Nasdaq: down 31 points or 0.18%
Dollar: down 0.71% to 66.19 US cents
Iron ore (Dalian): up 2.73% to US$127.33
Brent crude: down 98 US cents or 1.18% to US$81.90
Natural gas (US futures): up 4.68% to US$2.796
Gold: down US$33 or 1.24% to US$2,392.90
Silver: down US$1.26 or 3.92% to US$30.77
NYSE Arca Gold Bugs: down 3.71%
Bitcoin: down 0.29% to US$69,479
Copper (LME): down 4.26% to US$10,396
Nickel (LME): down 4.42% to US$20,350
Uranium (spot price): steady at US$92.50
Lithium carbonate (China spot): down 0.07% to US$14,763
