daytrades dec 10 pre-market

Morning traders.

Market wrap: The share market is likely to open moderately lower after a mixed night on Wall Street and falls in base metal prices.

The December SPI futures contract finished the night session 7 points or 0.15% weaker at 4745 after overseas markets failed to match the exuberance on the Australian stock market yesterday.

Optimism following a solid drop in jobless claims in the U.S. was off-set by growing opposition to President Obama's tax plan and strength in the U.S. dollar. The benchmark S&P 500 continued to inch higher, rising 0.38%, but the Dow was hamstrung by a disappointing profit outlook from DuPont, falling 2 points or 0.02%. The Nasdaq rallied 0.29%.

"Markets are struggling to go somewhere," the senior investment strategist at RidgeWorth Capital Management in the U.S. told Bloomberg. "Even as we get better-than-expected data in the U.S., there's still a high risk perception about the finances in developed countries. Maybe the heavy lifting toward austerity has yet to be done. Who knows?"

U.S. investors were cheered by news that weekly jobless claims fell to a better-than-expected 421,000, raising hopes that unemployment has finally turned a corner. However, the news drew buyers back to the U.S. dollar and away from equities and hard commodities.

Also weighing on the market was growing opposition among Democrats to President Obama's compromise tax deal with Republicans. Democrats in the House of Representatives are manoeuvring to send the bill back to the negotiating table.

Industrial metals mostly trimmed this week's gains as the prospect of an interest rate rise in China this weekend weighed on demand. In late trade in London, copper was off 1%, aluminium 2.2%, nickel 1.9% and zinc 1.3%. Tin was up 1.1% and lead was unchanged.

Oil was little changed but precious metals recovered some of this week's steep falls. Crude futures were recently up 12 cents or 0.1% at $88.40 a barrel. Spot gold was $5.40 stronger than Wednesday's New York close at $1,386.70 an ounce. Silver for March delivery rallied 46 cents or 1.6% to $28.72 an ounce.

The major European markets were once again mixed but mostly higher. Britain's FTSE rallied 0.23% and France's CAC was up 0.68%, but Germany's DAX eased 0.17%.

TRADING THEMES TODAY

CONSOLIDATION WITH AN UPWARD BIAS: U.S. markets have not travelled far this week, but the bulls' case is strengthened by the absence of a genuine pullback following last week's strong rise. The S&P 500 has inched higher, which ain't exciting but it is healthy. Our market has outperformed the U.S. this week, thanks to an improvement in local economic news and strength in commodities. We may give a little back today, with the threat of a rate rise in China tomorrow, but for now the momentum is positive.

ECONOMIC NEWS: There's nothing significant on the local calendar today but the Forex Factory diary has "tentative" listings for the first of this month's Chinese reports, including the trade balance. No firm time given. The bulk of the Chinese reports are due tomorrow. The trade balance is also one of tonight's key reports in the U.S. Also due: consumer sentiment, inflation expectations, import prices and the Federal budget balance.

Good luck to all. (And welcome back Kaya Raya - you were much missed.)