daytrades april 4 pre-market

Morning traders.

Market wrap: Shares will start the week at a five-week high after US stocks marked a second weekly gain on Friday on the back of upbeat jobs news.

The June SPI futures contract closed 33 points or 0.68% stronger on Saturday morning at 4907 following strong gains in European shares, a 30-month high for oil and a mixed session for metals.

US stocks rallied after the unemployment rate unexpectedly fell to a two-year low but moderated gains late in the session ahead of the weekend as some funds freed cash ahead of BlackRock's addition to the S&P 500. The Dow rallied 57 points or 0.46%, the S&P 500 put on 0.5% and the Nasdaq 0.31%.

Unemployment in the US fell to 8.8% last month as job creation topped economists' expectations. Non-farm payrolls increased at the fastest pace since May, rising a seasonally-adjusted 216,000.

"There's economic momentum," a market strategist for Prudential Financial in the US told Bloomberg. "As long as the jobs creation stays on course, it reads confidence throughout the economic landscape. Corporate earnings should be solid. There are many pockets in the market that are still attractive."

The jobs news helped industrials and producers of raw materials most exposed to US economic growth lead Friday's advances. In US trade, BHP rallied 1%, Rio Tinto 0.8% and Alumina 1.4%.

Oil companies and oilfield service providers saw substantial gains as the price of oil hit a 30-month high. Light sweet crude for May delivery rallied $1.22 or 1.1% to $108.31 a barrel on increased optimism about US economic growth and signs that the tide may be turning against rebels in Libya.

Gold fell back from Thursday's record high as US Federal Reserve officials offered mixed opinions on the outlook for interest rates, which affect the appeal of precious metals as alternative investments. Gold for June delivery eased $11 or 0.8% to $1,428.90 an ounce. Silver for May delivery dropped 16 cents or 0.4% to $37.84 an ounce.

Copper and other base metals suffered from jitters over the prospect of further monetary tightening in China following Friday's strong manufacturing report. Copper fell for the sixth time in seven sessions as a Bloomberg survey of 20 economists showed all expected China to hike interest rates this quarter. In London, copper fell 0.65%, aluminium 0.6%, nickel 1.3% and tin 0.9%. Zinc added 1.1% and lead 0.9%. US copper closed 1.1% weaker, off 3.6% for the week.

European markets surged after stress tests of Irish banks revealed no nasty surprises. Britain's FTSE rallied 1.71%, Germany's DAX 1.97% and France's CAC 1.64%.

TRADING THEMES THIS WEEK

AUSSIE DOLLAR: Last week was a huge one for the dollar, with the Aussie hitting previously-unseen heights. The dollar was this morning buying US $1.0402 after setting a post-float high early on Saturday morning. Momentum is strong, with risk appetite increasing on world markets and local economists scrambling to increase their outlooks for the dollar the year. However, its rise is a two-edged sword, boosting importers and hurting exporters. It will pay to know where your portfolio sits in terms of exposure.

OIL: The rising oil price fell off many traders' radars after the early-March 'Middle East meltdown', but is again emerging as a threat to economic growth. Momentum in oil has recovered, aided by evidence that the Libyan situation offers no easy answers and signs that the US recovery is gathering steam. A few weeks ago US market commentators were saying that oil posed no threat so long as it stayed below US $110 a barrel. At $108.31 this morning, we may not have long to wait this week to measure the impact.

ECONOMIC NEWS: For once there is more happening on the domestic scene this week than in the US. The week's local schedule includes: the monthly inflation gauge at 10.30 am today and monthly job ads at 11.30; services index, trade balance, cash rate and RBA statement (tomorrow); monthly home loans (Wed); and employment change, unemployment rate and construction index (Thu). Highlights in an unusually light US schedule include the ISM non-manufacturing report (Tue) and weekly jobless claims (Thu).

Good luck to all.