daytrade diaries... july 1

Morning traders.

Market wrap: Flagging consumer confidence saw US stocks finish their best quarter in a decade in the red overnight.

Key US indexes lost just under 1% (Dow -0.97%, S&P -0.85%) after the Conference Board's index of consumer confidence for June came in at 49.3, down from 54.8 in May. Readings above 50 signal increasing optimism among US consumers, so any reading below 50 is considered bearish for stocks. Weak housing data added to the gloom.

Despite the falls, this has been the best quarterly performance for US equities since 1998. The S&P 500 has added around 15% and Dow Jones Industrials around 11%, although the gains came largely in April and May.

Most US sectors saw falls overnight, but REITs (+0.64%) scraped into positive territory. Gold/silver miners slipped 3.22% as gold futures tumbled on a lessening of inflation fears and a strengthening US dollar. Gold was recently at $926.80, down more than $10 or 1.5%.

Crude oil continues to dance around the $70 level, falling more than 2% to $70.05 after earlier touching $73.38 a barrel, its highest level in eight months. Base metals also lost early gains as the dollar rallied. Copper fell 2.6% in UK trade, its biggest fall in a week. Aluminium was down 0.6%, lead 0.8%, zinc 0.7% and nickel 2.7%.

After yesterday's strong finish to the financial year, futures traders expect our market to open 16 points lower today. The SPI closed at 3885.

With falls across the board in commodities, you would expect the mining sector to come under pressure this morning. But that comparatively strong SPI figure suggests traders think there will be plenty of investors buying back into the market now the old financial year is over. And good riddance to it!

Good luck. Here's to a better trading year for all.