daytrades feb 8 pre-market

Morning traders.

Market wrap: Local shares are likely to open at a nine-month high after merger action fuelled a sixth positive session for the Dow.

The March SPI futures contract ended the night session 19 points or 0.39% stronger at 4866, bolstered by gains for European and US equities and record highs for copper and tin.

An avalanche of takeover and merger deals in the US helped the Dow stretch its longest winning run since November into a sixth night. The blue-chip index rallied 69 points or 0.57% to 12,162. The S&P 500 added 0.62% and the Nasdaq 0.53%.

In a sign of growing confidence in the economy, there were 30 corporate deals announced overnight in the US, worth US$1.6 billion. Also helping sentiment was another round of solid Q4 corporate earnings reports and a fifth night of gains in Europe.

"More and more people and companies see the economic recovery as sustainable," the chief investment officer at Dana Investment Advisors in the US told Bloomberg. "It's no surprise that there are so many M&A [mergers and acquisitions] deals going on. Earnings have been good and that's an indication that companies will have more cash."

What began as a bright session for metals produced record highs for copper and tin, but a late fade saw most finish lower. Tin hit an all-time high at $31,395 a tonne
after the world's largest integrated tin miner in Indonesia announced a 10% fall in production last year. Copper has rallied around 10% over the last two weeks.

"I am very bullish, but the market seems to be getting a little bit ahead of itself," a partner at LOGIC Advisors in the US told Reuters. "We may be getting to the point where there is a little bit too
much fund enthusiasm. I'd be a little cautious up here."

In London, copper finished 0.3% weaker, lead lost 1.8%, nickel 0.2% and zinc 0.6%. Tin closed flat and aluminium rallied 0.55%. In US trade, Rio Tinto added 1.4%, BHP 1% and Alumina 1.5%.

Gold and silver edged higher. April gold advanced $1.60 or 0.1% to $1,351 an ounce. Silver for March delivery added 28 cents or 1% at $29.34 an ounce.

Oil continued to retreat as tensions in the Middle East eased. Crude oil futures dropped $1.72 or 1.9% to $87.31 a barrel.

The major European markets continued to be supported by solid earnings reports and reduced fears over sovereign default. Britain's FTSE rallied 0.9%, Germany's DAX 0.93% and France's CAC 1.08%.

TRADING THEMES TODAY

UPWARDS, ONWARDS: Overbought be damned - this market is as strong as an ox. The Egyptian crisis appears to have been a one-day wonder, so far as Wall Street is concerned. When the market is this blinkered, you gotta run with the bulls or get trampled underfoot. For now, at least. There wasn't a lot to inspire the resource sector overnight - oil down, base metals looking 'toppy', gold flat - so it may pay to look elsewhere for today's gains.

ECONOMIC NEWS: Local quarterly business confidence numbers are due at 11.30 am today. A pretty quiet session for US news tonight features consumer confidence and a speech on the economy by Federal Reserve Bank of Dallas President Richard Fisher.

Good luck to all.