daytrades feb 4 pre-market

Morning traders.

Market wrap: Shares are likely to open near a two-week high after modest overnight gains for US stocks and a rebound in gold.

The March SPI futures contract ended the night session 14 points or 0.3% higher at 4796 after US shares shook off early weakness to close higher for a fourth session. Commodity prices were hampered by a surging US dollar, but gold had its best night in two weeks.

A string of upbeat economic reports and strong retail sales helped US equities erase losses in the final hour of trade. The Dow tacked on 20 points or 0.17% to close at 12,062. The benchmark S&P 500 added 0.24% and the Nasdaq 0.16%.

The night's economic data showed signs of improvement in US productivity, services industries and the jobs market. The Labor Department said worker productivity had its biggest jump in eight years during 2010, rising 3.6%. A measure of services industries showed the sector was expanding faster than economists expected last month. Jobless claims fell by more than analysts predicted as the effects of severe winter storms began to wear off.

Consumer discretionary stocks steered the market higher as retailers reported unexpectedly strong sales. However, resource sectors were held back by a rallying greenback after European Central Bank President Jean-Claude Trichet quashed short-term prospects for interest rate rises in Europe, sending the euro down more than 1%.

Gold snapped its losing streak as European traders hedged against the falling euro and riots in Egypt encouraged "safe haven" buying. Gold for April delivery was recently up $23.10 or 1.7% at $1,355 an ounce.

Industrial metals were little changed amid subdued demand during the Chinese Lunar New Year holiday season. Copper eased 0.05% in London but advanced 0.26% in the US as the late rally in equities lifted sentiment. In London, aluminium edged 0.04% higher, lead fell 0.08%, nickel 0.63%, tin 0.34% and zinc was unchanged.

Oil tracked equities, falling in early trade but recovering as the session wore on. Crude futures were recently off 22 cents or 0.2% at $90.64 a barrel.

The major European markets again ended mixed amid some disappointing earnings reports. Britain's FTSE eased 0.28%, Germany's DAX added 0.14% and France's CAC fell 0.74%.

TRADING THEMES TODAY

FIGHTING THE FRIDAY FADE: A mostly positive overnight lead amid definite signs of buyer fatigue in the US. The market struggled for most of the session despite some very supportive economic reports. Nonetheless, this week's rally continued and our market should at the least open ahead on the back of further gains for the big miners in US trade. Gold miners should do well, but other metals stocks and oilers can draw little direction from the overnight action. Our market has managed a positive finish on just one of the last seven Fridays, so the recent trend is against a positive finish.

GOLD: There have been signs of a basing pattern developing in gold, with recent higher lows and higher highs hinting that this latest pullback may be close to complete. Last night's spike may be confirmation enough for goldbugs. Recent geopolitical developments in the Middle East certainly support the argument for gold as a safe haven in uncertain times. The 'people's revolution' in the Middle East looks like it has some way to run and that should fuel buying interest in precious metals.

ECONOMIC NEWS: The Reserve Bank will offer some insight into its view of the economy and the prospects for interest rate rises when it releases its quarterly monetary policy statement at 11.30 am. Jobs are the main focus tonight in the US, with the release of non-farm employment change data and the unemployment rate.

Good luck to all.