Day trading pre-market open July 9

Morning traders.

Overnight round-up and day ahead:

Mixed overnight leads point to a subdued start to the Australian trading day.

The SPI 200 index contract edged up seven points or 0.1 per cent to 6622 as futures traders weighed a rebound in iron ore against declines in US stocks.

The ASX 200 slumped 79 points or 1.2 per cent yesterday to its heaviest loss in five weeks after strong US jobs data on Friday prompted a sea-change in rate expectations and a global rotation out of stocks into bonds and the US dollar. That process continued overnight, with the S&P 500 falling for a second session, closing 14 points or 0.48 per cent lower. The Dow Jones Industrial Average lost 116 points or 0.43 per cent and the Nasdaq 63 points or 0.48 per cent. Apple was the biggest drag on the market, falling 2.06 per cent after an analyst downgrade.

Earlier, European stocks ticked lower as bank shares were pressured by news Deutsche Bank will close its equities business and slash 18,000 jobs as part of a restructure. The pan-European Stoxx 600 index eased 0.05 per cent. Losses were heavier in Asia yesterday, where China's Shanghai Composite shed 2.58 per cent.

Australia's largest miners rallied in overseas trade with a recovery in iron ore. The Tianjin spot ore price bounced 3.1 per cent or $3.50 yesterday to $US117.75 a dry ton. BHP's US listing gained 1.02 per cent overnight and its UK listing 1.88 per cent. Rio Tinto added 0.78 per cent in the US and 1.66 per cent in the UK.

The picture elsewhere in commodity markets was less clearcut: oil contracts and industrial metals traded mixed, while gold held steady.

Tensions between the US and Iran helped US crude edged higher for a third session, but the international benchmark lost ground. Texas crude advanced 15 cents or 0.3 per cent to settle at $US57.66 a barrel on the New York Mercantile Exchange. Brent crude eased 12 cents or 0.2 per cent to $US64.11 a barrel on the ICE Futures Europe exchange.

Zinc fell 1.2 per cent in London to a six-month low on signs of improving supply. London copper lost 0.2 per cent, but other industrial metals made gains. Aluminium put on 0.3 per cent, lead 0.8 per cent, nickel 1.9 percent and tin 0.7 per cent.

Gold marked time as traders waited for testimony from Federal Reserve Chair Jerome Powell later this week that is expected to clarify the outlook for US rates. Gold for August delivery dipped 10 cents or 0.01 per cent to settle at $US1,400 an ounce.

The dollar faded roughly a tenth of a cent to 69.7 US cents as the greenback remained well supported.

All eyes are on the Fed this week after Friday's upbeat US employment report appeared to undercut the argument for immediate rate cuts. Jerome Powell is due to speak at an event tonight, but may be reticent to shed any light on the outlook until his appearance before Congress on Wednesday. Back here, NAB's monthly business confidence report is due at 11.30am Eastern Standard Time.

Breakfast

Today is National Sugar Cookie Day. (Surely a linguistic redundancy? Aren't all cookies full of sugar? Here's some grease and coffee for the rest of us.)