Day trading pre-market open September 2

Morning traders. Thanks @ttward and lounge lizards.

Overnight round-up and day ahead:

Aussie stocks look set to open little changed as soft Chinese factory data, fresh trade tariffs and a US market holiday depress buyer interest.

The ASX 200 staged its biggest rally in two months on Friday, surging 97 points or 1.5 per cent. However, index futures suggest that momentum will dissipate this morning. The SPI 200 eased five points or 0.1 per cent to 6566 as US stocks closed little changed ahead of tonight's Labor Day holiday.

Developments over the weekend may add further downward pressure. A report on Saturday showed Chinese factory activity contracted more than expected last month. And hopes that the US and China might delay imposing further tariffs on one another's goods proved unfounded as yesterday's deadline passed without any change in stance.

Saturday's factory report showed activity declined for a fourth straight month, with the contraction deepening as the trade war took its toll. The Purchasing Manager's Index shrank to 49.5 from a July reading of 49.7. Economists had predicted the gauge would hold steady at 49.7. Export orders declined for a 15th month.

China yesterday began collecting increased tariffs on $US75 billion of US imports. The move was retaliation for the introduction in the US of 15 per cent tariffs on more than $US115 billion of Chinese imports. Both measures were announced earlier last month. A further round of tariffs is due to come into effect on December 15.

US stocks closed little changed on Friday as money managers closed the books on a losing month. The S&P 500 ended two points or 0.06 per cent ahead for the session, but 1.8 per cent lower for a month dominated by the trade war and fears of a global recession. The Dow edged up 41 points or 0.16 per cent on the day, while the Nasdaq slipped 11 points or 0.13 per cent.

Australia's biggest miners fared well in overseas trades after a sharp rebound in iron ore as China attempted to east trade tensions. BHP's US-listed stock rallied 2.12 per cent and its UK stock 2.49 per cent. Rio Tinto gained 2.68 per cent in the US and 2.63 per cent in the UK. The rise came as the spot price for ore landed at Tianjin jumped $4.40 or 5.4 per cent to $US85.85 a tonne.

Nickel recorded its biggest one-day percentage gain in ten years after an Indonesian government official said the country will suspend exports from December. On the London Metal Exchange the metal used to make stainless steel surged 8.8 per cent to $US17,900 per tonne. Indonesia is a major nickel exporter. Other industrial metals closed mixed. London copper eased 1 per cent, lead 2.1 per cent and zinc 2.8 per cent. Aluminium edged up 0.1 per cent and tin 3.5 per cent.

Oil closed lower following reports that Russia will not meet production caps agreed with the OPEC oil cartel. Brent crude settled 65 cents or 1.1 per cent weaker at $US60.43. Russian Energy Minister Alexander Novak said his nation's crude output would exceed the agreed level, raising concerns about compliance with the deal.

Gold retreated as some of the heat came out of the trade war. Gold for December delivery settled $7.50 or 0.5 per cent lower at $US1,529.40 an ounce, denting a 6.3 per cent return for the month.

The dollar dropped almost a fifth of a cent to 67.25 US cents.

So it looks like a slow start to the week thanks to the US market holiday, but there will be plenty of economic data to keep traders on their toes.The domestic flood starts today with quarterly company profits, job ads and manufacturing figures. Overseas, a manufacturing gauge offers another take on China's factory output. The local earnings season peaked last week but brings reports today from the likes of Alkane and HotCopper.

Breakfast

Could be a slow day today, so the coffee machine expects heavy use. Help yourself to the buffet.