Morning traders. Thanks loungers, especially @Ravgnome.
Outlook for the day: Negative following a losing night on Wall Street after the US economy lost momentum, and likely selling pressure on ASX heavyweight BHP following a takeover offer for rival Anglo American.
ASX futures: down 26 points or 0.34%
Overnight themes:
US stocks slide as earnings disappoint and economic reports point to rising inflation and a slowing economy, a dire combination known as "stagflation".
The Dow leads the retreat, losing 0.98% after global bellwether Caterpillar cuts its sales forecast and IBM misses revenue estimates.
Facebook owner Meta weighs on the Nasdaq and S&P 500, plunging 10.56% after underwhelming revenue guidance. The S&P 500 drops 0.46%. The Nasdaq loses 0.64%.
The market opens sharply lower after first-quarter gross domestic product is the weakest in almost two years and falls well below expectations. The economy expanded 1.6% in the first three months of the year. Economists polled by Dow Jones expected growth of 2.4%.
Compounding investor concerns, the report also shows a sharp increase in price inflation. The Personal Consumption Price Index increased by 3.4%, almost double the 1.85% increase across the previous quarter. Treasury yields rise as the market continues to price out rate cuts this year.
"The GDP numbers definitely puts a ding in the paradigm that markets were hanging onto for equities in terms of high growth; and if you don't have high growth that will translate to lower-than-expected earnings... The double whammy was also the inflation number that came in stronger than expected so there wasn't really a silver lining in that report" - James St. Aubin, chief investment officer at Sierra Mutual Funds (per Reuters).
Resource stocks outperform in a falling market. The materials sector gains 0.69%. Energy is next-best with a rise of 0.5%. Industrials, utilities and tech also finish higher. Communication services is the biggest drag, thanks to Meta, diving 4.03%. Health, real estate and financials are next weakest, shedding 0.5 - 0.6%.
Last night's sell-off followed a directionless session on Wednesday. The S&P 500 inched up 0.02%. The Nasdaq gained 0.1%. The Dow dropped 0.11%.
BHP shares fall in overseas trade after the miner launches a $59.6 billion takeover offer for UK-listed copper miner Anglo American. Anglo American's shares trade above the offer price, implying the market thinks BHP might face competition to get the deal over the line. The Big Australian's US shares shed 3.43% in the US and 2.24% in the UK.
Iron ore rises for two straight sessions as increased Chinese steel output implies improving demand. Benchmark ore prices on the Dalian Commodity Exchange climb 1.03% in daytime trade yesterday to US$121.36 a metric ton, adding to Wednesday's 3% gain.
Dual-listed gold miner Newmont surges 12.46% in the US after smashing Q1 profit forecasts. The US miner absorbed Australian giant Newcrest last year and is listed on the ASX.
Key events today:
Wholesale inflation (PPI) - 11.30 am AEST
Import prices - 11.30 am
US inflation (PCE), consumer sentiment - tonight
S&P 500: down 23 points or 0.46%
Dow: down 375 points or 0.98%
Nasdaq: down 101 points or 0.64%
Dollar: up 0.33% to 65.19 US cents
Iron ore (Dalian): up 1.03% to US$121.36
Brent crude: up 99 US cents or 1.1% to US$89.01
Gold: up US$4.10 or 0.2% to US$2,342.50
NYSE Arca Gold Bugs: up 4.16%
Bitcoin: up 0.47% to US$64,979
Copper (LME): up 1.29% to US$9,900
Nickel (LME): up 1.67% to US$19,185
Uranium (spot price): down 0.94% to US$86.50
Lithium carbonate (China spot): up 0.38% to US$15,399
