Morning traders. Thanks @ttward and lounge lizards.
Overnight round-up and day ahead:
Stocks look set to open higher for a second day after Wall Street was boosted by signs of improving trade relations and a well-received product update from Apple.
ASX SPI200 index futures rallied 26 points or 0.4 per cent to 6663, positioning the benchmark local index for its fifth gain in six sessions. A late flurry of buying yesterday lifted the ASX 200 24 points or 0.4 per cent as gains in value stocks offset weakness in momentum sectors.
US stocks continued to heal from last month's market plunge after China issued tariff exemptions on 16 US product categories. The move was interpreted by some commentators as an olive branch ahead of the resumption of trade negotiations in Washington next month. The S&P 500 advanced 22 points or 0.72 per cent.
The Dow Jones Industrial Average, which has outperformed the other major indices during a cyclical rotation from momentum stocks into safer value plays with strong fundamentals, rose for a sixth straight night. The Dow put on 228 points or 0.85 per cent, closing above 27,000 for the first time since June. Value stocks continued to outperform momentum plays. An exchange-traded value fund rose 1 per cent to outperform the equivalent momentum fund by two to one.
However, the momentum stock-driven Nasdaq was the pick of the major indices due to a sharp lift in Apple. The Nasdaq put on 86 points or 1.06 per cent. Shares in Apple rose 3.18 per cent after the company unveiled three new iPhones, a new Apple Watch a TV subscription service and a gaming subscription service.
BHP and Rio Tinto hit multi-week highs here yesterday and may continue today following a rise in iron ore and rises in their overseas listings. Spot ore at China's Tianjin port improved $2.30 or 2.5 per cent to $US95.50 a tonne. BHP's US-listed stock added 0.44 per cent and its UK-listed stock 0.11 per cent. Rio Tinto gained 0.72 per cent in the US and 0.88 per cent in the UK.
Gold edged back above $US1,500 an ounce after US President Donald Trump demanded the Federal Reserve cut rates to zero. The Fed is due to meet next week. Gold for December delivery rebounded from a one-month low to settle $4 or 0.3 per cent ahead at $US1,503.20 an ounce.
Oil fell to a one-week low after the exit of White House hawk John Bolton cleared the way for a possible easing of US sanctions on Iran. Brent crude settled $1.57 or 2.5 per cent lower at $US60.81 a barrel. National Security Adviser Bolton left the White House on Tuesday following an alleged disagreement over relations with Iran.
News of a sharp decline in Chinese car sales dragged copper back towards a two-year low. Copper was bid down 0.9 per cent at $US5,772 a tonne in closing rings at the London Metal Exchange. The metal touched a low of $US5,518 earlier this month. August car sales in China were 6.9 per cent weaker than the same month last year, according to the China Association of Automobile Manufacturers. Nickel declined 0.8 per cent and lead 0.4 per cent. Aluminium gained 0.3 per cent, tin 2.2 per cent and zinc 1.1 per cent.
Turning to currency markets, the dollar is stuck in a holding pattern at 68.62 US cents.
Looking to the day ahead, the domestic economic calendar contains nothing that will change the market mood. This week's big-ticket event is tonight, when the European Central Bank is expected to announce measures to support the European economy. Across the Atlantic, consumer data will have an impact on expectations for next week's Federal Reserve policy meeting.
Breakfast
Today is National Chocolate Milkshake Day. Throw in a banana and it might keep you going. Today is also something called the National Day of Encouragement, so, um, do your best out there. I believe in you.
