daytrades march 24 pre-market

Morning traders.

Market wrap: The share market is likely to open at a two-week high after a strong night for commodities fuelled solid gains on Wall Street.

The June SPI futures contract ended the night session 19 points or 0.41% stronger at 4689, a 37-point premium to yesterday's closing XJO level, as gold hit a record, oil touched a 29-month high, lead neared a three-year high and aluminium a two-and-a-half year peak.

US stocks slumped in early trade after record low US new-home sales added to re-emerging worries about European sovereign debt and the cost of the natural disaster in Japan, but the major indexes surged after lunch as the price of oil eased and resource stocks attracted buyers. The benchmark S&P 500 put on 0.29%, the Dow 67 points or 0.56% and the Nasdaq 0.54%.

"We've been watching for more news out of Japan and the Middle East, but there's not much new information, so that's improving some confidence," the vice president at KDV Wealth Management told CNN. "There's a lot of pent-up demand, and a lack of further bad news will lift the market."

The US housing market delivered its worst report card yet, with sales of new homes tumbling 16.9% to a record low last month. Analysts said the market for new homes was crippled by the glut of foreclosed properties on the market. However, the share market pared initial losses after Wells Fargo said the grim figure would likely be revised higher.

Industrial metals turned higher after Japan announced the cost of rebuilding following the March 11 earthquake and tsunami is likely to top US$300 billion, more than twice the cost of the 1995 Kobe quake. Copper recovered to a two-week high but aluminium and lead were the stand-outs, nudging two-and-a-half-year and three-year highs, respectively. In London, copper rallied 2.7%, aluminium 1.3%, lead 2.2%, nickel 1.8%, tin 4.1% and zinc 3.7%. The gains helped BHP rally 1.4% in US trade, Rio Tinto 2.1% and Alumina 0.9%.

Oil rallied for the fifth day in six to its highest settlement price since September 2008. Crude for May delivery was recently ahead 56 cents or 0.53% at $105.50 a barrel after earlier touching $106.03.

Gold notched a new record and silver hit a 31-year high as unrest continued overnight across North Africa and the Middle East. Gold for April delivery was recently up $11.20 or 0.8% at $1,439 an ounce. Silver for May delivery rallied 11 cents or 3% to $37.35 an ounce.

"Instead of looking for a reason to buy gold, no one can find a reason not to buy gold," a senior market strategist with Lind Waldock in the US told MarketWatch.

The major European markets edged higher despite falls among peripheral debt-affected nations. Britain's FTSE added 0.58%, Germany's DAX 0.35% and France's CAC 0.54%, while Portugal's PSI 20 index fell 1% and Greece's ASE Composite fell 1.4%.

TRADING THEMES TODAY

REBOUND GATHERS STEAM: A very bullish night in the US considering the obstacles and a strong lead for our resource stocks. It's always a strong sign when US investors ignore bad news and there was plenty last night: a disastrous housing report, a whopping reconstruction bill from Japan, rising oil and the now-familiar grinding problems in the Middle East, North Africa and Fukushima. Yet the market still rallied. That's a signal that this rebound on Wall Street has more legs. Look to our resources sector to lead today.

METALS: A terrific session for holders of most resource stocks, with gold, silver, aluminium and lead the standouts. Gold and silver continue to benefit from safe-haven buying and weakness in the US dollar. Lead is expected to benefit from increased demand for battery power in Japan following damage to the country's energy infrastructure, while the fundamentals for aluminium are improving quickly.

ECONOMIC NEWS: The monthly leading index of economic indicators is due at 10 am, followed by the Reserve Bank's twice-yearly Financial Stability Review at 11.30. Chinese manufacturing figures are due at 1.30 pm. A solid schedule in the US tonight includes monthly core durable goods orders, durable goods, weekly unemployment claims and natural gas storage. The European Union is holding an all-day economic summit to discuss sovereign debt issues and solutions.

Good luck to all.