Outlook for the day: Mildly negative despite gains on Wall Street as a courtroom battle raged over the White House's tariffs.
ASX futures: down 17 points or 0.2%
Overnight themes:
US stocks rose in choppy trade as investors weighed soft economic data and late-afternoon news that an appeals court reinstated President Donald Trump's "reciprocal tariffs" after they were briefly struck down by a lower court.
The S&P 500 overcame a mid-session dip to advance 0.4%. The Dow gained 117 points or 0.28%. The Nasdaq Composite put on 0.39%.
The on-gain, off-again tariff saga continued with a federal appeals court pausing an earlier decision by the US Court of International Trade that the White House overstepped its authority with its reciprocal tariffs. The latest development means the tariffs will remain while the Trump administration challenges the initial ruling that the International Emergency Economic Powers Act did not give the president the authority to impose the tariffs. The administration may take the matter to the Supreme Court as soon as tonight.
"Trump has already rolled back most of these tariffs anyway, so these court rulings are just headlines" - Adam Sarhan, chief executive of 50 Park Investments (per Reuters).
The US dollar and treasury yields declined following news that gross domestic product contracted 0.2% last quarter and continuing claims for unemployment benefits climbed to the highest since 2021.
Nvidia put on 3.25% after its first-quarter earnings beat expectations.
Ten of eleven S&P sectors advanced. Rate-sensitive real estate and utilities gained 0.95% and 0.69%, respectively. Health was also strong, adding 0.74%. Communication services was the night's only drag, dipping 0.35% as Netflix and Alphabet retreated.
Gold rallied as an increase in claims for unemployment benefits in the US boosted hopes for faster rate cuts, pressuring the greenback. The US dollar index declined around 0.5%, lowering prices of dollar-denominated commodities for buyers using other currencies. US gold futures settled 0.6% ahead at US$3,343.90 an ounce. The spot price was lately up US$31.16 or 0.95% to US$3,317.47. "Gold is rallying on a jump in weekly initial jobless claims which could be a harbinger of a weakening labor market, which would get the Federal Reserve to cut more quickly," Tai Wong, an independent metals trader, told Reuters.
Iron ore was lifted by a temporary court-ordered pause in US tariffs (later set aside). Benchmark ore on China's Dalian Commodity Exchange rallied 1.29% to US$98.31 a metric ton, breaking a four-session losing run. The Singapore ore benchmark firmed 0.95% to US$97.
Oil fell after a preliminary measure of US growth showed gross domestic product contracted 0.2% last quarter. Brent crude settled 75 US cents or 1.16% weaker at US$64.15 a barrel.
Key events today:
April retail sales - 11.30 am AEST
April building approvals - 11.30 am
April private-sector credit - 11.30 am
US consumer inflation data (PCE) - tonight
US revised consumer sentiment - tonight
S&P 500: up 24 points or 0.4%
Dow: up 117 points or 0.28%
Nasdaq: up 75 points or 0.39%
VIX: down 0.67% to 19.18
US 10-year treasury yield: down 5 points to 4.43%
Dollar: up 0.33% to 64.43 US cents
Iron ore (Dalian): up 1.29% to US$98.31
Brent crude: down 75 US cents or 1.16% to US$64.15
Gold (futures): up US$21.50 or 0.6% to US$3,343.90
Gold (spot): up US$31.16 or 0.95% to US$3,317.47
Silver (spot): up 34 US cents or 1.03% to US$33.31
Palladium (spot): up US$6 or 0.62% to US$967
Antimony (China ore): down 2.92% to US$23,232
NYSE Arca Gold Bugs: down 0.59%
Bitcoin: down 1.28% to US$106,024
Copper (LME): up 0.02% to US$9,567
Nickel (LME): up 1.99% to US$15,395
Lithium carbonate (China spot battery grade): down 0.97% to 7,466 yuan
Global X Lithium & Battery Tech ETF: up 0.33%
Uranium (spot): steady at US$72
Global X Uranium ETF(URA): down 1.55%
BHP: up 0.14% (US); up 0.08% (UK)
