Day trading pre-market open October 18

Morning traders. Thanks @ttward and lounge lizards.

Overnight round-up and day ahead:

A soaring dollar and shifting rates outlook look set to weigh down Australian stocks for a second day despite overnight gains on Wall Street.

ASX SPI200 index futures eased 13 points or 0.2 per cent to 6651 as domestic issues outweighed positive international developments. The dollar hit a one-month high after yesterday's unexpectedly strong jobs data undercut the prospects for further rate cuts. The ASX 200 slumped 52 points or 0.8 per cent yesterday as bond proxies - stocks popular in times of falling rates - sold off.

The dollar rose more than a cent, peaking at 68.32 US cents overnight, its highest level since September 18. The rise came as weak US economic data and signs of progress on a US-China trade deal added momentum to rally triggered yesterday by news that the jobless rate declined as the economy created 26,200 full-time positions. The odds on a rate cut at the next Reserve Bank meeting fell to 24 per cent yesterday from 41 per cent before the jobs data, according to the ASX's RBA Rate Indicator. The Aussie was last buying 68.22 US cents.

US stocks edged higher as broadly positive company earnings and a draft Brexit deal overshadowed another round of soft economic news. The S&P 500 rose eight points or 0.28 per cent on well-received earnings from Morgan Stanley and Netflix. The Dow gained 24 points or 0.09 per cent, with its overall performance hampered by a sharp fall in IBM after the tech giant missed revenue targets. The Nasdaq put on 33 points or 0.4 per cent.

Market sentiment was boosted by news that the UK and European Union had struck a deal to manage the UK's departure from the EU. However, obstacles remained, with the draft document requiring support from a bitterly divided UK parliament.

While companies continued to beat modest earnings and revenues targets, the night's economic data underlined the recent disappointing trend. Housing starts, industrial production and regional factory output all missed expectations.

Hopes for a deal to end a damaging 16-month trade dispute between the US and China were boosted by positive signals from both sides. White House economic advisor Larry Kudlow said people were too pessimistic and "there’s a lot of momentum and there’s agreement on both sides”. US Treasury Secretary Steven Mnuchin said negotiators were working on the wording of a Phase 1 deal for the presidents to sign at next month's meeting in Chile. Meanwhile, a Chinese Ministry of Commerce spokesman said China remained committed to achieving an end to the trade war.

The big two Australian iron ore miners traded mixed overnight following quarterly production updates this week. BHP's US-listed stock fell 1.04 per cent and its UK-listed stock 1.02 per cent. Rio Tinto tacked on 0.49 per cent in the US and 0.24 per cent in the UK. Spot iron ore landed at China's Tianjin port was last selling at $US89.95 a dry ton.

Oil rallied after the US and Turkey struck a 120-hour ceasefire deal in Syria to allow Kurdish fighters to retreat. December Brent settled 49 cents or 0.8 per cent ahead at $US59.91 a barrel.

Gold caught some haven buying amid scepticism that the UK government's draft Brexit deal will garner enough support in the British parliament. Gold for December delivery settled $4.30 or 0.3 per cent higher at $US1,498.30 an ounce, the highest close in more than a week.

Copper edged higher on positive signals on a trade deal. On the London Metal Exchange, copper gained 0.2 per cent, lead 1.4 per cent, tin 1.8 per cent and zinc 0.2 per cent. Aluminium slipped 0.1 per cent and nickel 1.1 percent.

Looking to the day ahead, the trading session's big event lands at 1pm Eastern Standard Time when China releases a slew of economic data, including quarterly GDP figures and monthly industrial production. There is not a lot on the US economic calendar, but quarterly earnings reports are due from Coca-Cola, General Electric, Schlumberger and Baker Hughes.

Breakfast

Nice fry-up to end the week. Nom-nom.