Day trading pre-market open April 10

Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.


Outlook for the day: The ASX is primed for one of the biggest relief rallies in its history after the US blinked in its trade war with the world, pausing tariffs increases for most countries.

ASX futures: up 490 points or 6.62%


Overnight themes:

• US stocks posted some of the largest gains on record after the White House announced an immediate 90-day pause on tariff increases above 10% for most trading partners.
• The S&P 500 soared 9.52% during its strongest session since the GFC in 2008.
• The Dow surged 2,962 points or 7.87%, its best percentage gain since March 2020.
• The Nasdaq flew up 12.16%, its second-largest gain in history, only bettered during the original dot.com boom back in 2001.
• Stocks took wing in the afternoon after President Donald Trump announced a temporary delay on reciprocal tariffs announced last week that fuelled rapid and heavy falls across global markets. “I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Trump posted on Truth Social. However, he also raised the tariff on China from 104% to 125% and said the pause did not apply to tariffs on Canada and Mexico.
• Treasury Secretary Scott Bessent said the announcement meant a flat 10% tariff rate for all countries for the next 90 days while trade negotiations take place.
• Thirty billion shares changed hands during the biggest trading day in US history.
• Companies most deeply affected by tariffs led the rebound. Apple had its best session since 1998, jumping 15.33%. Tesla gained 22.69%, Nvidia 18.72% and Walmart 9.55%.
• “Given how depressed stock prices and sentiment had become, the 90-day pause is sparking a violent rebound, and delaying implementation certainly removes a giant overhang from the market. But — tariffs are not going away. China’s tariff rate is now in triple digit territory, and who knows what happens in 90 days when this pause concludes” - Adam Crisafulli, founder of Vital Knowledge (per CNBC).
• This morning's US backdown followed major ructions on bond markets yesterday and came after the European Union signed off on tariffs on US imports to start on April 15 and China raised its tariffs on US imports once more. Trump complained that investment markets had overreacted: “I thought that people were jumping a little bit out of line. They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid.”
• Sector gains in the US ranged from 3.91% for utilities up to 14.15% for tech. The two sectors with the biggest weighting on the ASX - materials and financials - popped 8.63% and 7.59%, respectively.
• The Australian dollar bounced 3.4% off yesterday's five-year low as "commodity currencies" rallied. The Aussie was lately buying 61.55 US cents after trading as low as 59.35 on Tuesday. The Canadian dollar posted its biggest rally in three months.
• Gold soared as investors sought havens from stock and bond market volatility. Futures settled US$89.20 or 3% higher at US$3,079.40 an ounce. The spot price was lately up US$102.49 or 3.44% to US$3,080.84.
• "Ultimately gold continues to be seen as a hedge against instability here. We got a situation where tariffs are becoming a big problem, and you have inflationary expectations going higher, and that's manifested by higher yields" - Bart Melek, head of commodity strategies at TD Securities (per Reuters).
• Oil rebounded from five-year lows after prices fell below the level where US shale producers can make money. Brent crude rallied US$2.66 or 4.23% to US$65.48 a barrel. US crude futures advanced US$2.77 or 4.65% to US$62.35.
• London copper reversed early losses after Chinese prices hit an eight-month low. Benchmark copper on the London Metal Exchange bounced 2.79% to US$8,897 a metric ton. Nickel, aluminium and zinc also rose. Tin slumped 4.68% after major producer Alphamin Resources announced it was restarting its Congo mine. Copper futures on the Shanghai Futures Exchange fell yesterday to their lowest since August 2024.
• Iron ore slumped to a six-month low in Chinese trade yesterday after China retaliated against US tariff hikes and vowed to "fight till the end". Benchmark ore on the Dalian Commodity Exchange ended daytime trade 2.68% weaker at US$93.74 a metric ton. The Singapore benchmark was down 1.16% at US$93.65.

Key events today:

• Inflation expectations - 11 am AEST
• China inflation data - 11.30 am
• Speech by RBA Governor Bullock - 8 pm
• US consumer inflation (CPI) - tonight

S&P 500: up 474 points or 9.52%

Dow: up 2,963 points or 7.87%

Nasdaq: up 1,857 points or 12.16%

VIX: down 35.75% to 33.62

US 10-year treasury yield: up 6 points to 4.362%

Dollar: up 3.4% to 61.55 US cents

Iron ore (Dalian): down 2.68% to US$93.74

Brent crude: up US$2.66 or 4.23% to US$65.48

Gold (futures): up US$89.20 or 3% to US$3,079.40

Gold (spot): up US$102.49 or 3.44% to US$3,080.84

Silver (spot): up US$1.42 or 4.78% to US$31.00

Palladium (spot): up US$32 or 3.7% to US$897.50

Antimony (China ore): up 1.22% to US$24,472

NYSE Arca Gold Bugs: up 8.3%

Bitcoin: up 7.77% to US$82,997

Copper (LME): up 2.79% to US$8,897

Nickel (LME): up 1.91% to US$14,420

Lithium carbonate (China spot battery grade): down 1.65% to 8,565 yuan

Global X Lithium & Battery Tech ETF: up 10.03%

Uranium (spot): steady at US$64.50

Global X Uranium ETF (URA): up 9.18%

BHP: up 10.27% (US); down 2.04% (UK)

Rio Tinto: up 6.29% (US); down 2.34% (UK)