Day trading pre-market open July 31

Morning traders. Thanks @ttward and lounge lizards.

Overnight round-up and day ahead:

The share market's run to all-time highs will be tested after US stocks sank as President Donald Trump ratcheted up trade pressure on China.

The SPI 200 index futures contract declined 28 points or 0.4 per cent to 6755 as the odds on a trade breakthrough this week appeared to diminish. The ASX 200 yesterday hit a record at 6875.5 before paring its gain to 19 points or 0.3 per cent at 6845.

US stocks closed in the red after President Trump released a flurry of Tweets accusing the Chinese of reneging on trade commitments and stalling talks in the hope the Democrats will win the White House. The S&P 500 fell eight points or 0.26 per cent. The Dow dropped 23 points or 0.09 per cent and the Nasdaq 20 points or 0.24 per cent.

As trade talks resumed in Shanghai for the first time since May, President Trump Tweeted that the Chinese economy was doing badly and there were "no signs" the Chinese were buying US agricultural products, as promised. He warned that if he wins the election, "the deal that they get will be much tougher than what we are negotiating now... or no deal at all. We have all the cards."

US stocks started the session deep underwater following heavy falls in Europe. Germany's DAX index fell 2.18 per cent and the pan-European Stoxx 600 lost 1.47 per cent after a string of German corporate powerhouses released disappointing earnings. The earnings outlook was brighter in the US, where 75 per cent of companies have beaten profit forecasts. Apple shares jumped 4.1 per cent in after-market action as the tech giant reported better-than-expected revenue following the close of regular trade this morning.

Back home, commodity exporters may draw support today from gains in iron ore, oil and precious metals, and a decline in the dollar.

Iron ore continued to defy gravity, yesterday pushing back above $US120 a tonne. The spot price at China's Tianjin port rose $2.70 or 2.3 per cent to $US121.75. Rio Tinto's overseas-listed stock rose 0.4 per cent in the US and 1 per cent in the UK. BHP slipped 0.3 per cent in the US and edged up 0.18 per cent in London.

Oil scored a fourth straight rise as expectations of a US rate cut tonight boosted demand hopes. Brent crude settled $1.01 or 1.6 per cent ahead at $US64.63 a barrel.

Gold put together a three-session winning run for the first time in five weeks. August gold settled $9.30 or 0.7 per cent higher at $US1,429.70 an ounce.

The dollar - seen by some foreign FX traders as a proxy for the Chinese economy - declined as a trade deal seemed further off than ever. The Aussie slipped four-tenths of a cent to 68.72 US cents.

Industrial metals fell with European stocks. On the London Metal Exchange, copper gave up 1.2 per cent, aluminium and zinc 0.4 per cent, lead 2.4 per cent and tin 0.9 per cent. Nickel closed unchanged.

Turning to the day ahead, there are two potential game-changers this morning: Chinese factory and services data at 11am Eastern Standard Time, and Aussie inflation figures at 11.30am. Trade talks continue in China. Wall Street has payroll data scheduled tonight, but the big events are the reaction to Apple's earnings and the Federal Reserve's rate announcement.

Breakfast

Today is National Avocado Day - at last something many of us recognise as breakfast. (Especially the hipsters - I'm looking at you @taughtbuffet...)