Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.
Outlook for the day: Negative. Australian stocks head for a fresh four-week low after the US Fed hikes its benchmark rate for a tenth straight time.
ASX futures: down 35 points or 0.49%
Overnight themes:
- US stocks sink as the Federal Reserve raises rates and rules out cuts any time soon.
- The US central bank lifted the federal funds target rate by 25 basis points to the 5 - 5.25% range, as expected. The minutes from the policy meeting dropped a previous reference to the likelihood of "additional policy firming", hinting at a pause after ten straight increases. Chair Jerome Powell said the change to the wording was "meaningful".
- Stocks fall after Powell said inflation was still too high and the bank was "prepared to do more if warranted".
- All 11 US sectors decline. Energy and financials are hit hardest. Defensive sectors fall least.
- Recession worries drive oil to its lowest close since December 2021.
Key events today:
- Australia trade figures - 11.30 am AEST
- China factory PMI - 11.45 am
S&P 500: down 29 points or 0.7%
Dow: down 270 points or 0.8%
Nasdaq: down 55 points or 0.46%
Dollar: up 0.08% to 66.76 US cents
Iron ore: down 0.9% to US$101.25
Brent crude: down US$2.99 or 4% to US$72.33 (weakest close since Dec 2021)
Gold: US$13.70 or 0.7% to US$2,0.37
NYSE Arca Gold Bugs: up 0.87%
Copper (LME): down 0.29% to US$8,489
Nickel (LME): down 1.6% to US$24,600
Global X Lithium & Battery Tech ETF: up 0.14%
BHP: up 0.8% (US); up 0.96% (UK)
Rio Tinto: down 0.18% (US); up 0.8% (UK)
