Good morning team, Chris Conway your Chief Market and Trading Strategist here with your First Look.
SPI futures are pointing to a flat start this morning, after Wall Street recovered some of the ground lost in the prior session, overnight.
Volatility eased after US data pointed to an ever strengthening economy, bolstering a path for higher US interest rates.
The S&P 500 closed up 0.4%, recouping some of the losses from the previous session’s 1.8% rout.
The VIX, or Wall Street’s fear gauge, shed 6% — the volatility index surged 46% in the prior session, from multi-decade lows, amid heightened concerns about Donald Trump’s presidency.
Overnight there was more good news on the US economy.
The Philadelphia Federal Reserve said its business activity index unexpectedly rose in May after declining for the past two months. Weekly unemployment data also pointed to strength in the labour market.
As long as the US economy continues to expand, the outlook for US corporate profits remains positive. Nearly all S&P 500 constituents have reported first-quarter results, revealing average profit growth of about 15 per cent, according to Thomson Reuters data.
What’s on today:
Overseas data: Euro zone March current account, May consumer confidence; US April leading index
SPI futures down 3 points to 5727
AUD -0.2% to 74.21 US cents
On Wall St, Dow +0.3%, S&P 500 +0.4%, Nasdaq +0.7%
In New York, BHP +1.4%, Rio +0.8%
In Europe, Stoxx 50 -0.6%, FTSE -0.9%, CAC -0.5%, DAX -0.3%
Spot gold -1.1% to $US1247.47 an ounce
Brent crude +0.6% to $US52.51 a barrel
Iron ore -1% to $US61.60 a tonne
Dalian iron ore +0.4% to 476 yuan
Steam coal +0.3% to $US74.05, Met coal +0.0% to $US174.50
LME aluminium -1% to $US1905 a tonne
LME copper bid down 1.8% to $US5507
10-year bond yield: US 2.23%, Germany 0.34%, Australia 2.50%
Brazil’s 10-year yield surged 176 basis points to 11.76%
What happened overnight: