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)
