Outlook for the day: Positive after bad news about US jobs drags treasury yields from multi-year highs, boosting stocks.
ASX futures: up 31 points or 0.45%
Overnight themes:
US stocks rebound after weak private payrolls figures soothe concerns that interest rates will have to go higher to cool inflation.
Wall Street's main indices extend gains in late trade to close near session highs. The Dow rebounds from its worst session since March.
Private payrolls expanded by just 89,000 last month, according to ADP. Economists had been expecting growth of at least 160,000.
Long-dated US treasury yields retreat from 16-year highs amid expectations tomorrow night's official September jobs report may show the labour market is slowing. (Strong jobs growth has hamstrung the Federal Reserve's ability to bring down inflation, prompting a series of rate hikes.)
Miners and growth sectors lead the rally. Tech gains 1.25%. Materials firms 1.19%. Also strong are real estate +1.13% and financials +0.83%.
The energy sector plunges 3.36% after oil suffers its biggest one-day loss since July 2022. Crude prices sink as an increase in US gasoline stockpiles points to falling demand. Gasoline inventories increased by 6.5 million barrels last week, according to the US Energy Information Administration. Brent crude tumbles 5.6% to a five-week low.
“We are hitting the peak of seasonal refinery maintenance, yet gasoline inventories built strongly amid much weaker implied demand” - Matt Smith, lead oil analyst, Americas, at Kpler.
Copper falls below US$8,000 per metric ton in London for the first time in five months. Short positions have reportedly increased since the start of September as the mood on financial markets grows more bearish.
Key event today:
Trade balance - 11.30 am AEDT
S&P 500: up 34 points or 0.81%
Dow: up 127 points or 0.39%
Nasdaq: up 177 points or 1.35%
Dollar: up 0.33% to 63.29 US cents
Iron ore (Dalian): untraded at US$116.64 (China Golden Week holiday)
Brent crude: down US$5.11 or 5.6% to US$85.81
Gold: down US$6.70 or 0.4% to US$1,834.80
NYSE Arca Gold Bugs: down 0.74%
Copper (LME): down 1.07% to US$7,921
Nickel (LME): steady at US$18,650
Lithium carbonate (China spot): untraded at US$23,538 (China Golden Week holiday)
