Day trading pre-market open May 15

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    Morning traders. Thanks loungers, especially @Ravgnome.

    Outlook for the day: Positive after the Fed helps US stocks shrug off a jump in wholesale inflation.

    ASX futures: up 36 points or 0.46%

    Overnight themes
    • US stocks rallied after Federal Reserve Chair Jerome Powell reassured investors that wholesale inflation data released overnight was "mixed", not "hot", and he still expected the next move in interest rates to be downwards.
    • The Nasdaq climbed 0.75% to a new closing high. The Dow firmed 0.32% to its ninth gain in ten sessions. The S&P 500 gained 0.48%.
    • Stocks initially struggled after April producer prices increased more than expected. The Producer Price Index climbed 0.5% last month, ahead of the 0.3% increase forecast by economists. However, selling pressure was tempered by revisions to the March data to show a 0.1% decline in prices.
    • The market regained strength after Powell described the inflation data as "mixed", not "hot". He added that he did not not expect the central bank's next move on rates to be a hike.
    • “I don’t think that it’s likely, based on the data that we have, that the next move that we make would be a rate hike,” he said. “I think it’s more likely that we’ll be at a place where we hold the policy rate where it is.”
    • The April consumer price index report is scheduled tonight, but may carry less weight following Powell's comments.
    • Treasury yields retreated, boosting the most rate-sensitive sectors of the market. Tech stocks gained 0.93%. Real estate added 0.69%.
    • "The market is getting more comfortable with higher-for-longer rates. The real question has been lately if a hike is a possibility and Powell's reiterating that it's not on the table right now... It seems that that bond market is digesting all this and the stock market is reacting to the bond market" - Lindsey Bell, chief strategist at 248 ventures (per Reuters).
    • The night's only losing sectors were energy -0.13% and consumer staples -0.22%. Financials advanced 0.48%. Materials inched up 0.08%.
    • BHP climbed to its highest in four weeks in overseas trade after takeover target Anglo American knocked back a revised offer from the Australian miner. Overnight, UK-listed Anglo American announced plans to spin out assets, a move that could make it harder for BHP to secure its prey. AA shares declined 3.2% in London.
    • Copper stepped back from a two-year high in London, but rallied to a record in the US as arbitrage traders took advantage of price disparities on different exchanges. The May contract traded briefly above US$5 a pound on Comex before trimming its advance to 3.39% at US$4.97.

    Key events today:
    • Third-quarter wage price index - 11.30 am AEST
    • US April consumer inflation (CPI) - tonight
    • US April retail sales - tonight

    S&P 500: up 25 points or 0.48%

    Dow: up 127 points or 0.32%

    : up 123 points or 0.75%

    Dollar: up 0.22% to 66.25 US cents

    Iron ore (Dalian): down 0.75% to US$119.65

    Brent crude
    : down US$1.10 or 1.32% to US$82.38

    : up US$16.90 or 0.72% to US$2,359.90

    NYSE Arca Gold Bugs: up 1.16%

    Bitcoin: down 2.27% to US$61,635

    Copper (LME): down 1.08% to US$10,075

    Nickel (LME): down 0.68% to US$19,005

    Uranium (spot price): up 0.82% to US$91.75

    Lithium carbonate (China spot): down 0.38% to US$15,098

    Global X Lithium & Battery Tech ETF: up 1.46%

    BHP: up 2.82% (US); up 2.02% (UK)

    Rio Tinto: down 0.21% (US); down 0.16% (UK)
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