Morning traders.Market wrap: The share market is likely to open...

Morning traders.

Market wrap: The share market is likely to open modestly lower after US stocks finished mixed and key resources retreated.

The March SPI futures contract ended the night session 5 points or 0.1% down at 4870 following equity losses on the S&P 500 and key European markets, and falls in oil and most metals overnight.

The Dow stretched its winning run into an eighth session, thanks to a late rally that turned a 45-point loss into a gain of 7 points or 0.06%. However, the S&P 500 closed 0.28% lower and the Nasdaq lost 0.29%.

"The market is overbought and a bit of a cooling-off period is warranted," the director of investments at Hinsdale Associates in the US told MarketWatch. "I could see a pullback in the 2%-to-3% range. The longer-term picture is still very much intact, with an improving economy and improving earnings leading to higher stock prices.?

The weakness in the US followed losses in Europe after Ireland postponed plans to provide its beleaguered banks with additional capital. Britain's FTSE fell 0.64%, Germany's DAX 0.03% and France's CAC 0.43%.

An index of emerging markets fell for a fifth straight day as Shanghai marked its return from a week-long holiday with a loss of 0.9% yesterday. The MSCI Emerging Markets Index was recently down 1.6% after China's rate hike and accelerating food inflation in the UK underlined growing inflationary worries. Corn and other grains rallied sharply overnight after a US government report forecast a significant fall in corn supplies this year.

Energy companies were the biggest drag on the S&P 500 as crude oil's week-long retreat continued. Crude futures were recently down 6 cents or 0.1% at $86.86 a barrel but recovering after the weekly US inventory report showed a sharper-than-expected rise in gasoline supplies.

Most industrial metals retreated as an interest rate hike and tepid post-holiday demand from China weighed on markets. Copper touched its lowest level in a week following a rise in London warehouse stocks. In London, copper fell 1.4%, aluminium 0.9%, lead 3.2%, tin 0.5% and zinc 2.5%. Nickel edged 0.1% higher.

Precious metals were little changed, supported by a falling US dollar and inflationary worries. Gold for April delivery was recently down 90 cents or 0.1% at $1,363 an ounce. March silver eased 9 cents or 0.3% to $30.19 an ounce.

TRADING THEMES TODAY

TESTING THE RALLY: There were a few worrying signs in the last 24 hours but US investors keep buying any dips. European and emerging markets were notably weak. Shanghai fell 0.9% yesterday and will be worth watching again today. Copper slipped to a one-week low overnight and most base metals retreated. Our big miners were sold down in US trade. Not a great lead then, but our earnings season is off to a promising start and may provide further support today (see below).

LOCAL EARNINGS: We're into the local earnings/AGM season and can expect reports today from two market heavyweights: Telstra (interim) and Rio Tinto (full-year). Also due to deliver earnings today: AWC, RIA, TCL, SGN, SAI and AQP.

ECONOMIC NEWS: Monthly employment numbers are released at 11.30 am today - employment change and the unemployment rate, currently 5%. Weekly unemployment claims are the key release tonight in the US. Also due: wholesale inventories, natural gas storage and the Federal Budget Balance.

Good luck to all.