Outlook for the day: Positive after Wall Street rebounds strongly to start a huge week of corporate earnings and economic data, as well as an interest rate decision.
ASX futures: up 29 points or 0.43%
Overnight themes:
US stocks fly higher as the S&P 500's Friday slump into correction territory brings in bargain-hunters.
The S&P 500 bounces straight back out of a technical correction ahead of a rates decision this week, employment data and trading updates from Apple and other index heavyweights. The Dow surges more than 500 points to its biggest gain since June.
The rally follows heavy selling last week that pulled the S&P 500 down more than 10% from its 2023 peak in July.
“Investors are finally feeling a little bit more confident that perhaps we priced in enough bad news and that’s really manifesting in a stronger market today” - Art Hogan, chief market strategist at B. Riley Financial.
The Federal Reserve starts a two-day meeting tonight that ends with a rates announcement tomorrow night. The central bank is expected to leave benchmark rates unchanged after a rally in treasury yields did much of the work in raising the cost of borrowing. Central banks in Japan and England also announce rates decisions this week.
The Q3 reporting season rolls on this week with earnings from Apple, Caterpillar, Pfizer and Starbucks. Apple reports on Thursday.
All 11 US sectors advance, led by communication services, financials and consumer staples. Energy brings up the rear with a rise of 0.31% despite a major setback for crude prices.
Oil falls 3.4% to a three-week low after the weekend passes without significant disruptions to supplies or a broadening of the Israel-Hamas conflict.
China stimulus measures last week help propel iron ore to a seven-month high. Dalian ore futures rally 2.51% to 900 yuan a ton (US$123) following parliamentary approval of a massive sovereign bond issue. Steel and coal prices also rise.
Gold settles above US$2,000 an ounce for the first time since July 31 as buyers take a more pessimistic view of developments in the Middle East than oil traders.
Key events today:
Private-sector credit - 11.30 am AEDT
China manufacturing, services PMIs - 12.30 pm
US consumer confidence, employment cost index - tonight
S&P 500: up 49 points or 1.2%
Dow: up 511 points or 1.58%
Nasdaq: up 147 points or 1.16%
Dollar: up 0.59% to 63.76 US cents
Iron ore (Dalian): up 2.51% to US$123.07
Brent crude: down US$3.03 or 3.4% to US$87.45
Gold: up US$7.10 or 0.35% to US$2,005.60
NYSE Arca Gold Bugs: down 1.53%
Copper (LME): up 0.49% to US$8,138.50
Nickel (LME): up 0.84% to US$18,500
Lithium carbonate (China spot): down 0.6% to US$23,126
