Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.
Outlook for the day: Negative following heavy falls on Wall Street.
ASX futures: down 83 points or 1.17%
Overnight themes:
- US stocks dive as treasury yields hit multi-year highs and an explosion at a hospital in Gaza exacerbates tensions in the Middle East.
- A sharp rebound in house building sends treasury yields higher on expectations that interest rates will stay higher for longer to cool inflation. Housing starts increase 7% in September, reversing much of the previous month's decline.
- The yield on 10-year US treasuries trades above 4.9% for the first time since 2007. The 2-year yield hovers around 5.2%, a level last seen in 2006. Mortgage rates rise to the highest since 2000.
- “Markets are trying to figure out where rates are going to peak. Markets want to see what happens when rates hit 5%” - Jamie Cox, managing partner at Harris Financial.
- A mixed batch of corporate earnings generates selling in Morgan Stanley and United Airlines, and buying in Procter & Gamble. Netflix and Tesla report after the bell this morning.
- Chip-maker Nvidia falls for a second day after the White House tightened a ban on selling AI chips to China.
- Mining and industrial stocks lead the sell-off. The materials sector sheds 2.58%. Industrials gives up 2.43%. Energy and consumer staples are the only sectors to resist the downturn.
- Oil climbs to a two-week high following reports of Iran calling for an embargo on crude sales to Israel after hundreds are killed in a hospital explosion in Gaza.
- Haven-buying propels gold to a seven-week high.
- Iron ore retreats after China's crude steel production eases 5% in September from the month before, according to government data.
Key events today:
- September jobs report - 11.30 am AEDT (expected: +20,600 jobs; jobless rate steady at 3.7%)
- Q1 business confidence - 11.30 am
- Speech by Federal Reserve Chair Jerome Powell - tonight
S&P 500: down 59 points or 1.34%
Dow: down 333 points or 0.98%
Nasdaq: down 219 points or 1.62%
Dollar: down 0.4% to 63.37 US cents
Iron ore (Dalian): down 0.4% to US$117.76
Brent crude: up US$1.60 or 1.78% to US$91.50
Gold: up US$32.60 or 1.72% to US$1,968.30
NYSE Arca Gold Bugs: down 0.59%
Copper (LME): up 0.27% to US$7,992
Nickel (LME): down 0.03% to US$18,620
Lithium carbonate (China spot): up 0.29% to US$24,166
Global X Lithium & Battery Tech ETF: down 4.1% (3-year closing low)
BHP: down 2.14% (US); down 1.3% (UK)
Rio Tinto: down 3.04% (US); down 2.47% (UK)
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