The S&P 500 and Dow Jones Industrial Average ended Wednesday's session near the flatline as the postelection rally lost momentum. Investors also focused on a key inflation report, which came in as expected.
The S&P 500 edged up by 0.02 per cent, closing at 5,985.38, while the Dow rose 47.21 points, or 0.11 per cent, to finish at 43,958.19. The Dow had gained as much as 230 points earlier in the session. Meanwhile, the Nasdaq Composite dipped 0.26 per cent, closing at 19,230.74.
The October consumer price index (CPI) saw a slight uptick, rising 2.6 per cent year-over-year, in line with economist forecasts. Core CPI, which excludes food and energy, increased 3.3 per cent from a year earlier, also matching expectations. Following the inflation data, futures trading in Fed funds pointed to a strong likelihood that the Federal Reserve would cut rates again in December, according to the CME FedWatch tool.
Looking ahead, key economic reports due later this week include the producer price index (PPI) data on Thursday and retail sales figures on Friday.
Here are some of the key events that have shaped the global markets overnight.
In the US, MinRes, a major Australian mining company, announced it would be mothballing its Bald Hill lithium mine, a move that reflects the ongoing slump in lithium prices. This news has raised concerns about the impact on jobs with around 300 positions at risk.
In the UK, Betashares, a popular investment platform, launched free trading in a bid to attract more investors. This move has intensified competition in the market and led to the acquisition of Selfwealth, another popular low-cost platform, by Bell Financial for a hefty $51 million.
As we head into the Australian trading day, investors should be aware of the following:
The RBA governor, Michele Bullock, will be participating in the ASIC Annual Forum in Sydney at 10 am today, with the October Labour force report released at 11.30 am.
NAB expects employment growth of 30,000 and the unemployment rate to remain unchanged at 4.1 per cent.
Overall, the outlook for the ASX today appears positive, with global markets providing a supportive backdrop. The SPI futures are pointing to 0.4 per cent rise.
Sources: Bloomberg, FactSet, IRESS, CNBC, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.
