Day trading pre-market open June 3

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


Outlook for the day: Positive after key commodities posted strong gains and US stocks overcame early losses.

ASX futures: up 69 points or 0.82%


Overnight themes:

• US stocks shrugged off early weakness as investors bet rising tensions with trading partners can be overcome as a deadline looms this week for "best offers".
• The S&P 500 closed 0.41% higher after earlier falling more than 0.8%. The Dow edged up 35 points or 0.08%. The Nasdaq Composite gained 0.67% as Nvidia rebounded and Meta put on more than 3.6%.
• The market fell at the open after the White House announced plans to double tariffs on imported steel and aluminium and China pushed back against accusations it had "violated" a temporary trade agreement struck with the Trump administration. President Donald Trump announced late on Friday he intended to hike import duties on imported steel and aluminium from 25% to 50%. The European Union said the hike "undermined" trade negotiations. “This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic,” an EU spokesperson said.
• China pushed back against US accusations it had not kept its side of a deal struck last month to temporarily wind back tariffs. Beijing said the US had breached the agreement and China would act to protect its interests. “If the US insists on its own way and continues to damage China’s interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests,” China's Ministry of Commerce said.
• The White House has asked trading partners to submit their "best offers" on trade by Wednesday. Officials are reportedly seeking to nudge negotiations along before a temporary stay on higher tariffs expires in five weeks.
• "Markets see the latest round of tariff threats and ramped up rhetoric against China, the EU, and steel as nudges to move negotiations towards the finish line," Jamie Cox, managing partner at Harris Financial Group, told Reuters.
• Also behind the market's opening weakness: news that US manufacturing contracted for a third straight month. The ISM Manufacturing PMI dropped to 48.5 last month from 48.7 in April. Economists had forecast a more modest contraction to 49.5.
• Steel companies surged after the latest tariff threat. Car-makers and other companies dependent on imported steel slumped.
• Energy and tech stocks led the turnaround. The S&P energy sector led with a rise of 1.15%. Energy gained 0.89%. Also solidly ahead: materials +0.48%. The night's only drag was industrials, down 0.24%.
• A three-week high in gold lit a fire under US gold miners. Gold futures popped US$81.80 or 2.5% to US$3,397.20 an ounce overnight as the US dollar sank, trade worries bubbled away and weekend events in Russia sharpened geopolitical risks. The spot price was lately up US$91.69 or 2.79% to US$3,381.01. The NYSE Arca Gold BUGS index jumped 6% to its highest in more than 12 years. "The latest tariff threats on Friday, including plans to double steel and aluminium tariffs to 50% along with Ukraine's weekend attacks deep into Russia, have heightened geopolitical risks and are fuelling risk-off sentiment," Peter Grant, vice president and senior metals strategist at Zanier Metals, told Reuters.
• Copper jumped almost 4% in the US as increased tariffs on steel and aluminium imports stoked speculation that the White House will follow through on threats to tariff copper. The most-active US copper futures were lately up 3.89% on Comex to US$4.8595 a pound after earlier soaring almost 6%. Industrial metals all posted solid gains on the London Metal Exchange. Copper firmed 1.23%, nickel 1.34%, aluminium 1.23%, zinc 2.41%, lead 0.83% and tin 1.04%. "Although copper wasn't even mentioned in Trump's latest announcement, markets are clearly pricing in the risk of import tariffs following the February investigation," Panmure Liberum analyst Tom Price told Reuters.
• Iron ore slumped to its lowest in a month before recouping most of its fall after the Trump administration said it would double the tariff on imported steel from 25% to 50%. With Chinese ore and steel markets closed for a public holiday, ore futures in Singapore briefly declined 1% to US$94.85 a metric ton before paring their loss to less than 0.1% at US$95.95.
• Oil jumped as Ukraine's attack deep into Russia doused speculation that the two sides were close to agreeing a ceasefire that might eventually see sanctions lifted on Russian crude. Brent crude settled 2.9% higher at US$64.60 a barrel. The Russia news overshadowed an increase in the OPEC+ daily production quota that analysts said had already been priced in ahead of last weekend's meeting.

Key events today:

• Minutes from last month's RBA rates policy meeting - 11.30 am AEST
• Q3 company operating profits - 11.30 am
• Q3 current account - 11.30 am
• China manufacturing PMI - 11.45 am
• US job openings - tonight

S&P 500: up 24 points or 0.41%

Dow: up 35 points or 0.08%

Nasdaq: up 129 points or 0.67%

VIX: down 1.13% to 18.36

US 10-year treasury yield: up 3.7 points to 4.445%

Dollar: up 0.77% to 64.92 US cents

Iron ore (Singapore): down 0.1% to US$95.95

Brent crude: up 2.9% to US$64.60

Gold (futures): up US$81.80 or 2.5% to US$3,397.20

Gold (spot): up US$91.69 or 2.79% to US$3,381.01

Silver (spot): up US$1.77 or 5.35% to US$34.76

Palladium (spot): up US$21 or 2.18% to US$985

Antimony (China ore): steady at US$22,779 (China market holiday)

NYSE Arca Gold Bugs: up 6%

Bitcoin: down 0.07% to US$105,021

Copper (LME): up 1.23% to US$9,615

Nickel (LME): up 1.34% to US$15,510

Lithium carbonate (China spot battery grade): steady at 7,454 yuan (China market holiday)

Global X Lithium & Battery Tech ETF: down 0.66%

Uranium (spot): steady at US$72

Global X Uranium ETF (URA): down 0.44%

BHP: up 0.9% (US); up 0.11% (UK)

Rio Tinto: up 0.25% (US); down 0.53% (UK)