21 Dec Day Trading Pre Market

Morning all
Thanks weekend regulars

The ASX is set to continue the last two session lower today after further weakness in oil and oil stocks, coupled with financial stock weakness dragged US markets lower Friday. Continued pressure on BHP may also weigh locally.
Mar SPI -40 points 5021

Earlier European shares fell in volatile trade on Friday, giving up most of the Fed-inspired gains of the previous session as investors took profits before the holiday season.
The pan-European FTSEurofirst 300 index fell 1 percent after gaining 1.3 percent on Thursday. The euro zone's Euro STOXX 50 index fell 1.4 percent.
European stocks had rallied on Thursday as investors took the U.S. Federal Reserve's decision to raise interest rates as a sign of confidence in the world's biggest economy.
"Yesterday's rally was a bit overdone and investors are taking profit as they prepare for the holiday. Lower oil prices this morning and weaker U.S. markets gave the pretext to sell," said Stephan Rieke, senior economist at BHF-BANK in Frankfurt.

U.S. stocks closed lower on Friday for the second straight day, as concerns, ranging from a decline in crude oil prices to the global response to the Federal Reserve's interest hike, weighed down the market.
The expiration of stock and index options contracts added volatility in a heavy trading volume day.
The S&P and Dow had their worst two-day performance since Sept. 1, while indexes posted losses for the week.
"It's a confluence of all the factors: oil prices continuing to run down, the Chinese trying to counteract the dollar and everyone is digesting, globally, what the Fed's announcement means for emerging markets and everything else," said J.J. Feldman, portfolio manager at Miracle Mile Advisors in Los Angeles.
The Dow Jones dropped 2.1 per cent on Friday as investors turned their minds from the US Federal Reserve's historic rate hike to collapsing oil prices and worries over the global economy.
S&P 500 -1.8%
Nasdaq -1.9%

Locally market heavyweight BHP Billiton will also come under selling pressure after news on Friday that a court ruling has blocked its Brazilian assets in response to the Samarco dam disaster.
A judge in the state of Minas Gerais froze the Brazilian assets of BHP and fellow mining giant Vale after determining their joint venture, Samarco, was unable to pay for damage caused by the bursting of the dam at its mine in November, ruling that the two companies could be held responsible for the disaster. The government is also demanding $US5 billion ($7 billion) over the disaster.
The judgment mentioned estimates from the prosecutor that Samarco only had the funds to cover one-half of the damages. BHP, Vale and Samarco must make an initial deposit of $US500 million to cover clean-up costs and map out a comprehensive clean-up and anti-contamination plan. There are hefty daily fines if these requirements are not met.
BHP ADR +1.2% - before Brazilian ruling

Oil is trading at levels last seen during the global financial crisis on signs the surplus will be exacerbated. The Organisation of Petroleum Exporting Countries abandoned output limits at a December 4 meeting while the US Federal Reserve increased interest rates this week, boosting the dollar and reducing the appeal of commodities traded in the US currency. Both houses of Congress approved on Friday a $US1.1 trillion spending measure that would end a 40-year-old ban on most crude exports.
"This is a huge glut and there's no relief in site," Stephen Schork, president of the Schork Group in Villanova, Pennsylvania, said by phone. "We got within $US1.89 of the 2009 low of $US32.40 today. That's got to be the target now and we'll probably soon test it."
Oil $34.55

Base metals flat

Gold +1.5%
HUI +3%
AUD Gold $1476

AUD 71.76

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