daytrades march 1 pre-market

Morning traders.

Market wrap: Healthy gains for resource prices on Friday point towards a positive start to the local trading week.

Futures traders expect our market to open 16 points ahead this morning after a falling U.S. dollar bolstered oil and metals prices. The March SPI futures contract closed at 4619.

European markets ended the week with a strong session and U.S. equities recorded modest advances after news of a possible deal to help Greece meet its debts. A Bloomberg report said Germany may buy Greek government bonds through a state-owned bank, easing fears that Greece will struggle to secure funding from nervous bond investors.

The S&P 500 recovered early losses to close 0.14% higher. The Dow edged up 4 points or 0.04% and the Nasdaq added 0.18%. European markets were more bullish. Britain's FTSE climbed 1.45%, Germany's DAX 1.2% and France's CAC 1.9%.

The U.S. economy continues to deliver mixed signals. GDP grew at 5.9% at the end of last year, the fastest rate since 2003 and in line with expectations. The Chicago Business Barometer improved for a fifth straight month to its highest level since 2005, beating analysts' expectations. However, consumer spending was revised downwards and sales of existing homes plummeted for the second straight month.

The U.S. Dollar Index, which tracks the greenback against a basket of currencies, slid 0.5% as the euro picked up on hopes for a solution to the Greek debt crisis. Dollar weakness tends to support dollar-denominated commodities because it makes them cheaper for holders of other currencies.

Copper moved sharply higher to complete its best month since August as industrial metals continued to rebound from January's "Chinese slowdown" sell-off. Nickel looked particularly strong. In London, copper added 3.2%, aluminium 2.3%, lead 0.5%, nickel 3.3%, tin 0.7% and zinc 3.8%.

Gold futures hit their highest level of the week on Friday. The spot price advanced $11.30 or 1% to $1,117.90 an ounce. Crude oil futures continued to cling near the $80 level, climbing 1.84% to $79.66 a barrel.

TRADING THEMES THIS WEEK

INTEREST RATES: The Reserve Bank is due to announce an interest rate decision at 2.30 pm tomorrow. The central bank held fire last month but the market consensus is that we won't avoid a rise this time. That prospect may restrict any advances for the local market over the next two sessions.

GDP: The profit reporting season may be over but this is a busy week for economic news. The national accounts for the December quarter are due on Wednesday. Economists expect gross domestic product to have expanded 0.9% in the December quarter, pointing to an accelerating recovery. Anything less will disappoint the market.

ECONOMIC NEWS: The week starts with a barrage of local events. The Australian Industry Group's Manufacturing Index is due at 9.30 am. RBA Governor Glenn Stevens takes part in a panel discussion at 9.45 am. The monthly inflation gauge is due at 10.30 am. The ABS releases current account and company operating profits at 11.30 am. New home sales are also possible today. Chinese purchasing managers' indexes are due at noon and 1.30 pm. Tonight in the US: a purchasing managers' index, personal spending, personal income, construction spending, core price index and manufacturing prices.


PS Thanks for all the kind wishes over the weekend. Congrats again to Kevi on his news.

Good luck to all today.