Outlook for the day: Neutral/mildly negative following modest gains on Wall Street and a fresh 30-month high in iron ore.
ASX futures: down 4 points or 0.06%
Overnight themes:
US stocks add to Tuesday's bumper gains after producer price data bolsters confidence that inflation is cooling fast enough for interest rates to remain on hold.
The Dow outperforms with a rise of almost 0.5%. The Nasdaq and S&P 500 overcome lunchtime wobbles to eke out gains following their best session since April.
Wholesale prices dive 0.5% in October, the biggest one-month slide since April 2020. The report follows data on Tuesday showing consumer prices increased less than expected in the same month.
Treasury yields rise after retail sales decline less than expected. Sales in October contract by 0.1%, versus the consensus forecast of 0.3%.
“Clearly, interest rates are the key driver of this stock market, and the activity today makes sense because PPI was very, very cool, as we had expected... Today, rates are a little bit higher not because of PPI but because retail sales printed a little bit hot relative to expectations” Jay Hatfield, founder and CEO of Infrastructure Capital Advisors.
Retail stocks surge after Target reports a sharp decline in supply-chain costs. Shares in Target jump 17.87%, its biggest single-day gain in more than four years. Also logging gains: Macy's, Kohl's, Walgreens and Home Depot.
The House of Representatives passes a bill to avert a government shutdown. The bill then goes to the Senate. If approved, it moves to the White House for President Biden's signature.
Consumer staples is the pick of the sectors as retailers help it rally 0.7%. Also positive are financials +0.57% and materials +0.47%. The energy, utilities and tech sectors finish lower.
A bull run in iron ore continues after Chinese factory output surprises to the upside. Both industrial production and retail sales came in stronger last month than analysts predicted. The China ore price touches its highest since May 2021.
Oil falls for the first time in five sessions as US crude inventories increase for a second week by much more than expected. Government data show commercial inventories have risen by 17 million barrels in the last fortnight.
Key events today:
October jobs report - 11.30 am AEDT
US industrial production, unemployment claims - tonight
S&P 500: up 7 points or 0.16%
Dow: up 164 points or 0.47%
Nasdaq: up 9 points or 0.07%
Dollar: up 0.12% to 65.06 US cents
Iron ore (Dalian): up 1% to US$134.07
Brent crude: down US$1.29 or 1.56% to US$81.18
Gold: down US$2.20 or 0.11% to US$1,964.30
NYSE Arca Gold Bugs: down 0.79%
Bitcoin: up 5.08% to US$37,417
Copper (LME): up 0.5% to US$8,276.50
Nickel (LME): up 0.34% to US$17,485
Uranium: steady at US$74.75
Lithium carbonate (China spot): down 1% to US$20,696
