Day trading pre-market open November 15

Morning traders. Thanks loungers, especially @Ravgnome and @Patterns. Huge session overnight on Wall Street - possible sea change in market sentiment.


Outlook for the day: Highly positive as evidence of weakening inflation fuels strong gains in US stocks as traders slash their bets on further interest rate hikes.

ASX futures: up 91 points or 1.3%


Overnight themes:

• US stocks soar as a cooldown in inflation sharpens expectations that the top for this interest rate cycle is in.
• The S&P 500 and rate-sensitive Nasdaq rally to their highest in two months after October core and headline inflation come in weaker than expected. The S&P 500's 1.91% gain is its largest since April.
• The year-on-year increase in the Consumer Price Index falls to 3.2% last month, down from 3.7% in October. Economists had expected a reading around 3.3%. Core annual inflation, which strips out volatile food and energy prices, drops to 4%, the lowest in two years and also below expectations.
• "We're happy to see both headline and core CPI come in lower than expected. It's telling us that the Fed is done, there's nothing left for it to do here" - Thomas Hayes, chairman at hedge fund Great Hill Capital.
• The odds on "no change" at next month's Federal Reserve rates meeting hit 100%, according to CME Group's Fedwatch tool. Futures markets start to price in rate cuts as soon as next May.
• US treasury yields fall sharply. The yield on 10-year government treasuries drops 19 basis points to 4.445%. (Stocks cratered last month when the 10-year yield pushed briefly above 5%.)
• Small caps outperform. The Russell 2000 index flies up 5.34% to a six-week high.
• The most rate-sensitive sectors post substantial gains. Real estate pops 5.32%. Utilities gains 3.94%. The consumer discretionary and materials sectors both add more than 2.9%.
• The Australian dollar jumps 2% as forex traders revise their expectations for the US rates outlook.
• Gold surges from under US$1,950 an ounce to trade briefly above US$1,970. Silver also rises. The NYSE Arca Gold Bugs index of US precious metal miners pops 5.57%.
• Iron ore trades near a two-and-a-half year high in China, while Singapore ore prices ease 0.8% as the market heads into the seasonally-weak Chinese winter. Galaxy Futures warns steel demand fell last month as temperatures dropped.

Key events today:

• Q1 wage price index - 11.30 am AEDT
• China October economic update (factory output, retail sales, etc) - 1 pm AEDT
• US retail sales, wholesale inflation - tonight

S&P 500: up 84 points or 1.91%

Dow: up 490 points or 1.43%

Nasdaq: up 327 points or 2.37%

Dollar: up 2% to 65.07 US cents

Iron ore (Dalian): up 0.3% to US$132.39

Brent crude: down 5 US cents or 0.06% to US$82.47

Gold: up US$16.30 or 0.83% to US$1,966.50

NYSE Arca Gold Bugs: up 5.57%

Bitcoin: down 3.17% to US$35,316

Copper (LME): up 0.56% to US$8,212.50

Nickel (LME): up 0.4% to US$17,425

Uranium: steady at US$74.75

Lithium carbonate (China spot): down 1.32% to US$20,900.68

Global X Lithium & Battery Tech ETF: up 3.76%

BHP: up 3.89% (US); up 1.76% (UK)

Rio Tinto: up 3.4% (US); up 2.11% (UK)