Day trading pre-market open November 23

Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.


Outlook for the day: Mildly negative heading into the US Thanksgiving break following a hawkish inflation outlook from the RBA, and after BHP and Rio Tinto sit out a Wall Street rally.

ASX futures: down 12 points or 0.17%


Overnight themes:

• US stocks rally into the Thanksgiving break on light volume as traders assess mixed earnings and economic data, bond volatility and a plunge and partial recovery in oil.
• The S&P 500 touches its highest since early August before paring its gain as treasury yields turn higher and a car explosion at a border crossing with Canada fuels terrorism fears. The yield on the 10-year US treasury was lately up two basis points after earlier falling to a two-month low.
• Oil briefly plunges nearly 5% after the OPEC+ oil cartel delays a meeting where members were expected to discuss extending production cuts. Prices dive, then partially recover, as traders debate where the delay indicates producers are split over extending caps on output. Brent crude settles 0.59% weaker at US$81.96 a barrel after trading as low as US$78.41. A meeting planned for November 26 will now take place on November 30.
• "This postponement indicates difficulties within the OPEC+ group to reach an agreement to cut production" - Jorge Leon, senior vice president at Rystad Energy.
• Nvidia drags after warning restrictions on exports to China will dent Q4 earnings. The chip-maker's shares lose 2.46%.
• Treasury yields rise after a survey shows Americans expect inflation to accelerate next year. The survey shows Americans now expect inflation of 4.5% next year, up from 4.2% in October and 3.2% in September.
• New claims for unemployment benefits decline by 24,000 to 209,000 last week, bucking the recent trend. Employment gains complicate the Federal Reserve's attempt to tame inflation by cooling the economy. However, a separate report shows spending on durable goods slumped 5.4% in October.
• Communication services, consumer staples and health are the best-performing sectors, gaining between 0.54% and 0.88%. Energy is the only decliner, losing 0.11%.
• Interest rate worries are revived by an RBA warning that inflation is turning into a "homegrown" problem. Governor Michele Bullock says inflation is increasingly being driven by the increasing costs of services. "Hairdressers and dentists, dining out, sporting and other recreational activities – the prices of all these services are rising strongly," she tells economists last night. It will take another two years for inflation to drop back below 3%, she adds. "The remaining inflation challenge we are dealing with is increasingly homegrown and demand driven," she says.
• Optimism about Chinese government support for developers helps lift iron ore for a third session. China ore prices rally 1.53% to a fresh 12-month high. Singapore ore logs a nine-month high.

Key events today:

• Flash manufacturing/non-manufacturing PMIs - 9 am AEDT
• US Thanksgiving holiday (Wall Street closed) - tonight

S&P 500: up 18 points or 0.41%

Dow: up 185 points or 0.53%

Nasdaq: up 66 points or 0.46%

Dollar: down 0.25% to 65.41 US cents

Iron ore (Dalian): up 1.53% to US$137.77

Brent crude: down 49 US cents or 0.59% to US$81.96

Gold: down US$8.80 or 0.43% to US$1,992.80

NYSE Arca Gold Bugs: up 0.3%

Bitcoin: up 1.84% to US$37,477

Copper (LME): down 0.86% to US$8,376.50

Nickel (LME): down 2.63% to US$16,505

Uranium: down 0.32% to US$81.50

Lithium carbonate (China spot): down 1.39% to US$19,994

Global X Lithium & Battery Tech ETF: down 1.27%

BHP: down 0.5% (US); down 0.36% (UK)

Rio Tinto: down 0.56% (US); down 0.42% (UK)