Morning traders. Thanks weekend loungers, especially @Ravgnome and @Patterns.
Outlook for the day: Neutral/mildly positive after Wall Street snaps a three-session losing run. ASX futures gains tempered by declines in iron ore and industrial metals.
ASX futures: up 4 points or 0.06%
Friday themes:
·Wall Street's main indices pare weekly losses with slender rebounds on Friday.
· Stock benchmarks finish off session highs as inflation worries ahead of consumer and wholesale data this week keep gains in check.
· Investor focus remains on the likelihood of additional rate hikes as oil prices close at their highest since November. Stronger-than-expected services sector and unemployment benefits report add to inflation concerns.
· “In recent conversations with institutional investors, it is clear to us that investors are incrementally nervous. Foremost is their concern that economic momentum has been improving at a pace that might warrant the Fed to have to increase the path of hikes” - Tom Lee, head of research at Fundstrat.
· Gains in energy, utilities, financials and materials help offset Friday declines in real estate and industrials.
· For the week, the S&P 500 loses 1.3%, the Dow 0.8% and the Nasdaq 1.9%.
· Iron ore logs its first weekly loss in five weeks after Chinese authorities warn of tighter regulation of futures and spot markets following this year's price gains. The latest intervention comes after prices increased by 14.4% last month. Dalian prices drop 2.1% on Friday.
· Copper has its worst week in four as a rising US dollar pressures commodity prices. The greenback has risen for eight straight weeks, its longest win run in nine years.
· Oil settles at its highest since November after gaining 2.4% last week following extensions to Saudi and Russian production cuts.
Key events this week:
· Dividend season (headwind all month as share price valuations reset). Major companies trading ex-dividend this week include: CSL (today); BSL, NWS (Tue); BXB, IGO (Wed); and S32 and SVW (Thu).
· Consumer sentiment, business confidence - Tue
· US consumer inflation - Wed
· August jobs report - Thu
· US wholesale inflation - Thu
· China industrial production, retail sales, etc - Fri
· US consumer sentiment - Fri
S&P 500: up 6 points or 0.14%
Dow: up 76 points or 0.22%
Nasdaq: up 13 points or 0.09%
Dollar: up 0.58% to 63.89 US cents
Iron ore (Dalian): down 2.1% to US$112.61
Brent crude: up 73 US cents or 0.8% to US$90.65
Gold: up 20 US cents or less than 0.1% to US$1,942.70
NYSE Arca Gold Bugs: up 0.07%
Copper (LME): down 0.97% to US$8,240
Nickel (LME): down 1.96% to US$20,050
Lithium carbonate (China spot): down 0.75% to US$27,374
Global X Lithium & Battery Tech ETF: down 1.33%
BHP: down 0.74% (US); down 0.72% (UK)
Rio Tinto: down 0.03% (US); down 0.26% (UK)
