daytrades april 21 pre-market

Morning traders.

Market wrap: Shares are set to gap higher this morning after strong US earnings fuelled the biggest rally by global stocks this year.

The June SPI futures contract ended the night session 47 points or 0.97% stronger at 4912 as the Dow closed at a 34-month high, gold held above US $1,500 an ounce and aluminium hit a two-and-a-half year high as industrial metals rebounded sharply from last week's sell-off.

Upbeat quarterly reports from the US tech sector and stirrings in the stagnant US housing market triggered big rises in US and European shares. The Dow surged 187 points or 1.52% as Intel and United Technologies recorded substantial gains. The S&P 500 rallied 1.35% and the tech-heavy Nasdaq soared 2.1%. The gains were even more substantial in Europe, where Britain's FTSE jumped 2.13%, Germany's DAX 2.98% and France's CAC 2.46%, helped by solid European earnings and a successful bond auction in Spain.

"The 'risk-on' trade is in full-blown mode," the chief investment strategist at Janney Montgomery Scott in the US told Bloomberg. "The good corporate earnings across the board reinforce the idea that the global recovery is in place. As a consequence, equities and commodities are feeling the benefits of that."

The US housing market beat expectations for a second night. Sales of existing homes were 3.7% stronger last month, following a big slump in February.

Apple continued the upbeat mood in the technology sector with a result released after this morning's market close that sent its shares up 2.4% in after-market trade. The company reported a 95% increase in quarterly earnings on this time last year.

The S&P GSCI index of commodities surged 1.7% as a recovery in the euro pressured the US dollar. The Australian dollar smashed to new post-float heights overnight, recently buying US $1.0716.

Gold pushed to a new record, trading as high as US $1,506.20 an ounce, as traders sought hedges against further falls in the greenback. Gold for June delivery was recently up $7.20 or 0.5% at $1,502.30 an ounce. May silver marked another 31-year high, rising $1.33 or 3% to $45.25 an ounce.

Oil maintained its recent strong correlation with US equities, hitting a two-week high after a decline in US oil inventories. Light sweet crude for June delivery was recently ahead $3.23 or 3% at $111.53 a barrel.

Aluminium rallied to a two-and-a-half year high, supported by a Chinese government decision to curb new smelters, reducing the risk of over-supply. Copper hit its highest level in a week and other base metals improved. In London, copper gained 2.5%, aluminium 0.4%, lead 2.1%, nickel 4.3%, tin 1.1% and zinc 1.1%. US copper was recently up 2.7%.

TRADING THEMES TODAY

RISK BACK ON: The US earnings season is always volatile but this week has seen one of the more memorable turnarounds. Our market is primed to wipe out a week's losses at today's open. Can't see any obvious negatives in that overnight lead: Wall Street up, Europe up, oil up, precious metals up, industrial metals up, the dollar through the roof, Apple beating expectations after the market close. Of course, the latter is a double-edged sword and if we see any weakness this morning it may come in companies exposed to strength in the dollar.

EASTER/ANZAC BREAK: At the start of this week, the looming five-day trading break looked like a worry because the negative market tone might encourage fretful traders to close positions. Now, however, the reverse may hold true, with the temptation to open positions to cash in on potential rises during the two trading session on Wall Street next week when our market is closed. The ASX trading calendar appears to show trading hours for today as normal, although the exchange has closed early on this day in past years. Can anyone confirm today's trading hours?

ECONOMIC NEWS: The quarterly producer price index is due at 11.30 am. Tonight's schedule in the US includes weekly unemployment claims, the Philly Fed manufacturing index, leading index and house price index.

Good luck to all.