daytrades april 1 pre-market

Morning traders.

Market wrap: Gains for key commodity prices are expected to support our market today despite a red night on Wall Street after disappointing U.S. jobs data.

Futures traders marked the June SPI contract up 13 points to 4892 after a choppy night in the U.S., where share prices plunged, rallied and then fell away again. The S&P 500 closed 0.33% lower, the Dow dropped 51 points or 0.47% and the Nasdaq lost 0.53%. An index of Australian shares sold on American stock exchanges or over the counter in the U.S. fell 0.7% overnight, in line with yesterday's retreat on the ASX.

The market swooned after a private-sector employment report appeared to dash hopes that Friday's monthly government numbers will show a strong turnaround in the US's bleak labour market. Private sector companies shed 23,000 jobs last month, according to the ADP report - far short of the 40,000 rise in jobs predicted by economists.

Worried traders pared their bets ahead of the Easter Friday holiday as a trader quoted on MarketWatch said the release of the government report "potentially could play havoc over the weekend". Stephen Carl, head equity trader at the Williams Capital Group, said, "If something drastic comes out, come in with your football helmet on Monday morning."

A much-watched measure of manufacturing activity in the Chicago region fell more than expected last month. The Chicago purchasing managers index fell to 58.8% from 62.6% in February. Economists had expected a smaller retreat after recent healthy gains. However, readings above 50% indicate expansion.

American financial stocks weathered the fallout - the S&P Bank Index rallied 0.85%. Oilers, airlines and metals miners also advanced.

U.S. dollar-denominated commodity prices benefitted from a slide in the greenback after supportive European economic news saw traders buy the battered euro. The dollar index, which measures the greenback against six major currencies, was recently off 0.5%.

Oil futures pushed to their highest level since the global financial crisis. Crude futures were recently ahead 85 cents or 1% at $83.22 a barrel. Crude has rallied 5.1% in March and 5.5% for the quarter, its fifth straight quarterly rise.

Gold neared a two-week high but pared gains in the afternoon. The spot price was recently $10 or 1% higher at $1,113.30 an ounce. Silver and platinum also advanced.

Industrial metals prices were mixed but mostly higher. Nickel neared a two-year high, tin touched its highest level since September 2008 and copper hung close to this week's 19-month high. Copper lost 0.3% in New York trade after earlier advancing 0.45% in London. In other London trade, aluminium added 1.1% and nickel 2.8%, while tin dropped 0.3%, lead 0.3% and zinc 0.6%.

The major European markets were mixed after a ratings agency downgraded five Greek banks. Britain's FTSE edged 0.13%, Germany's DAX added 0.18% and France's CAC fell 0.34%.

TRADING THEMES TODAY

OUTLOOK - CHOPPY: A very interesting day ahead with a host of conflicting signals overnight and the prospect of more during today's heavy economic schedule (see below). The mainstays of our market - financial stocks and miners - did well in the U.S. overnight and commodity prices were mostly firmer, so we may recover some of yesterday's losses. However, Wall Street trades twice before our market re-opens on Tuesday and the danger of a serious pullback if tomorrow's jobs numbers disappoint may see caution prevail today.

OIL: Crude broke to a new post-GFC high overnight, suggesting further gains to come. However, recent history shows that profit-takers have been quick to capitalise on any breakouts, with fresh peaks quickly succeeded by deep pullbacks. Will this break be different?

ECONOMIC NEWS: A very busy day here ahead of the four-day Easter holiday. The Australian Industry Group's manufacturing index is due at 9.30 am. Monthly inflation figures are released at 10.30 am. Trade balance numbers are the day's big event at 11.30 am. Competing Chinese manufacturing reports are due at 12.00 and 1.30 pm. An index of annual commodity price changes is due at 4.30 pm. In the U.S. tonight: manufacturing, unemployment claims, job cuts, construction spending, natural gas storage and vehicle sales. The big news comes during tomorrow's public holiday: the unemployment rate and non-farm employment change.

Good luck to all.