Outlook for the day: The share market's winning run looks set to end at six after sticky inflation data helps sink US stocks.
ASX futures: down 58 points or 0.81%
Overnight themes:
US stocks fall as hotter-than-expected headline inflation data pushes treasury yields sharply higher. The S&P 500 logs its first loss in five sessions.
Treasury yields and the US dollar swing higher after consumer prices increase more than expected last month. Rising rents help lift the consumer price index 0.4% for the month for an annual increase of 3.7%. Economists expected gains of 0.3% for the month and 3.6% year-on-year.
Core inflation (excluding volatile energy and food prices) falls to 4.1% year-on-year from 4.3% in August.
“Every print that comes in where it shows more stickiness chips away at the inherent belief we will eventually get to 2% inflation” - Phillip Colmar, global strategist at MRB Partners.
The yield on 10-year US treasuries surges 14 basis points to 4.7%. The Australian dollar dives 1.6% as the greenback rebounds.
Also negatively affecting sentiment: Boston Fed President Susan Collins says the central bank may have to raise rates again if warranted by inflation.
Miners and bond proxies lead the retreat. The materials sector sheds 1.52%, utilities 1.49% and real estate 1.3%. Two sectors finish ahead: energy and tech gain 0.1%.
Key events today:
China inflation data - 12.30 pm AEDT
US consumer sentiment - tonight
S&P 500: down 27 points or 0.62%
Dow: down 178 points or 0.51%
Nasdaq: down 85 points or 0.63%
Dollar: down 1.63% to 63.13 US cents
Iron ore (Dalian): up 1.64% to US$114.62
Brent crude: up 18 US cents or 0.2% to US$86
Gold: down US$4.30 or 0.2% to US$1,883
NYSE Arca Gold Bugs: down 1.83%
Copper (LME): down 0.75% to US$7,964
Nickel (LME): up 1.43% to US$18,750
Lithium carbonate (China spot): up 0.3% to US$23,615
