daytrades nov 25 pre-market

Morning traders.

Market wrap: A bright start to local trade lies ahead after evidence of healing in the U.S. economy helped overseas share markets rebound overnight.

The December SPI futures contract this morning advanced 38 points or 0.83% to 4624 as U.S. stocks erased two days of weakness, and oil and metals rallied.

The Dow bolted at the opening bell and kept inching higher, closing 151 points or 1.37% higher at 11,187. The S&P 500 added 1.49% and the Nasdaq topped both with a gain of 1.93%.

The rally was fuelled by the lowest U.S. jobless claims since 2008 and improving consumer confidence and spending data. Jobless claims plunged by 34,000 to 407,000 last week and an October index of consumer sentiment recorded its highest reading since June.

"It seems things are taking off," the chief investment officer at Huntington Asset Management in the U.S. told Bloomberg. "For the most part, the economic numbers in the U.S. were good. There's some degree of resolution of the Irish crisis and no further hostilities between North and South Korea. The [U.S.] economy is recovering, Christmas spending will certainly be better than last year."

Other U.S. economic news was not as bright. Durable goods orders declined and demand for new homes unexpectedly dropped.

Commodities rebounded despite a solid session for the U.S. dollar. The dollar index was recently up 0.12% at 79.77.

Oil broke a three-day losing streak and hit its highest level in a week despite a surprise rise in U.S. weekly inventories. Crude futures rallied $2.83 or 3.5% to $84.09 a barrel. Analysts said the rise was partly explained by short-sellers closing positions ahead of a holiday weekend in the U.S.

Industrial metals were boosted by the prospect of rising demand from the U.S. Nickel surged more than 4% as technical buyers supported a move through a key chart level. In late trade in London, copper was up 1.6%, aluminium 0.3%, lead 2%, nickel 4.3%, tin 1.9% and zinc 2.2%.

Gold tracked sideways as record low inflation figures in the U.S. reduced its appeal as a hedge against inflation. Spot gold was recently $2.10 weaker than Tuesday's New York close at $1,374.40 an ounce.

The major European markets rallied as strong German business data soothed jitters over sovereign debt concerns. Britain's FTSE rallied 1.36%, Germany's DAX 1.77% and France's CAC 0.62%.

TRADING THEMES TODAY

U.S. FINDS A PULSE: Jobs have been the missing link in the US's sluggish recovery from the financial crisis and last night may mark a turning point. The huge drop in weekly jobless claims announced overnight may prove to be another false dawn, but combined with the up-tick in consumer sentiment it was strong evidence that the economy is stirring. That's good news for global growth and share markets. Last night just might be the start of a multi-day rally. One caveat - traders should keep a wary eye on how any revival in the U.S. dollar impacts on commodity prices, given the recent inverse relationship between the two.

THANKSGIVING LULL: Markets are closed tonight in the U.S. for the Thanksgiving public holiday, so this healthy overnight lead will be our principal driver both today and tomorrow. Friday is a shortened trading day in the U.S. and many players will take it as a holiday, likely constraining the extent of any market moves before normal trading hours resume in the U.S. on Monday night.

ECONOMIC NEWS: Quarterly private capital expenditure figures are due at 11.30 am. The U.S. shuts down tonight for the Thanksgiving public holiday.

Good luck to all.