Day trading pre-market open October 4

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



Outlook for the day: Negative following heavy falls on Wall Street as surging bond yields continue to rattle financial markets.

ASX futures: down 35 points or 0.5%


Overnight themes:

• US stocks sink as treasury yields and the dollar surge in response to economic data that bolsters the argument for higher rates for longer. The Dow falls into negative territory for 2023.
• A bond sell-off continues after job openings jump to 9.6 million last month from 8.9 million in July, smashing expectations for a decrease. Strength in the job market adds to inflationary pressures, which could force the Federal Reserve to hike again.
• The US 10-year treasury yield hits 4.81%, its highest since 2007. (Yields move inversely to price). Investors fret that the housing market might stall as the average fixed-rate mortgage nears 8%. An exchange traded fund of home-builders sheds 2.58%.
• Wall Street's "fear gauge", the VIX or volatility index, jumps to a level last seen in May.
• "We really need to get through this bond sell-off, and find some type of equilibrium in the bond market, before we think stocks will be able to find a bottom” - Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
• Ten of eleven sectors decline. Hardest hit are consumer discretionary -2.59%, real estate -1.9% and technology -1.82%. Utilities bounces 1.17%. Energy finished almost flat.
• The Australian dollar falls below 63 US cents for the first time in 11 months. The Aussie drops as low as 62.85 US cents before paring its fall to 63.04 cents, a loss of almost 1%. The fall comes after the US dollar index logged a 12th straight positive week, its longest win run since 2014.
• Oil edges higher for the first time in four sessions. Brent crude bounces 0.2% off a three-week low.

Key events today:

• OPEC+ monthly meeting - tonight
• US private payrolls, services PMI - tonight

S&P 500: down 59 points or 1.37%

Dow: down 431 points or 1.29%

Nasdaq: down 248 points or 1.87%

Dollar: down 0.9% to 63.04 US cents

Iron ore (Dalian): untraded at US$116.64 (China Golden Week holiday)

Brent crude: up 21 US cents or 0.2% to US$90.92

Gold: down US$5.70 or 0.3% to US$1,841.50

NYSE Arca Gold Bugs: up 0.57%

Copper (LME): down 0.55% to US$8,008.50

Nickel (LME): down 0.8% to US$18,650

Lithium carbonate (China spot): untraded at US$23,538 (China Golden Week holiday)

Global X Lithium & Battery Tech ETF: down 2.71% (34-month low)

BHP: down 1.75% (US); down 1.32% (UK)

Rio Tinto: down 2.12 % (US); down 1.66% (UK)