Day Trading 4 Dec Pre Market

Morning All

The ASX looks to open lower today after moves by the ECB overnight disappointed markets sending the Euro flying against the US dollar and markets sharply lower
December SPI futures point 67 points lower to 5164

The European Central Bank unveiled a package of measures to tackle too-low inflation, from a cut in the floor for interest rates to an expansion of its bond-buying program by at least 360 billion euros ($390 billion). Investors were unimpressed.
The regular meeting of the ECB saw the central bank make its easing move, lower the deposit rate by 0.1%. Mario Draghi’s ensuing press conference was deemed by many European market watchers as not going far enough in the ECB’s easing measure.
What is surprising is that the Euro currency rallied sharply and the dollar index sold off sharply. This is a classic “buy the rumor, sell the fact” scenario for the USDX and a “sell the rumor, buy the fact” for the Euro currency. Don’t be surprised if the same contrary effect occurs if the FOMC raises its interest rates on December 16.

Market reactions to these moves saw the DAX off 400 points or approx 3.7%, Euro Stoxx similar, FTSE down 146 to 6275

The marketplace was still digesting some data and comments from the U.S. Federal Reserve Wednesday. While containing no surprises, the Fed’s beige book and comments from Fed Chair Janet Yellen reinforced notions the U.S. central bank will slightly raise U.S. interest rates in two weeks—for the first time in nine years.
US stocks were sharply lower overnight as European Central Bank's minimal rate cut and extended stimulus failed to impress investors, and Federal Reserve Chair Janet Yellen's comments hardened expectations of an interest rate hike this month.


Yellen told lawmakers on Thursday that the US central bank was close to lifting its overnight interest rate from near zero. Yellen gave an upbeat view of the economy, saying "growth is likely to be sufficient over the next year or two to result in further improvement in the labor market."
"Markets are still struggling with the dichotomy between the ECB and the Fed," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
Data released on Thursday showed initial jobless claims for last week rose, but remained at levels consistent with a strengthening labor market. This comes ahead of Friday's employment report, which is expected to show that the US economy added 200,000 jobs in November.
With the labor market showing resilience, economists say it is almost certain the Fed will raise interest rates at its next meeting.
The Dow Jones industrial average was down 252 points to 17477, the S&P 500 was down 30points, or 1.3 per cent, at
All 10 major S&P 500 sectors were down with the health index's 1.49 percent fall leading the decliners.

The House of Pain

Iron ore looks set to fall below $40 tonne, last as $40.75

Base metals copper, aluminium, zinc down .3.5, nickel rose .5%

Gold up .76% at $1061
HUI rose 2.5%

Oil improved $1.16 to $41.16

AUD$ .7353

Sources Bloomberg, SMH, *****

Have a good day