daytrades june 24 pre-market

Morning traders.

Market wrap: Local shares face an uncertain start as the Prime Minister faces a leadership challenge before the start of trade that may determine the future of the proposed resources super tax.

Futures traders are currently flagging a modestly positive start after a mixed night on Wall Street following grim U.S. housing data and a downbeat outlook from the Federal Reserve. The September SPI futures contract closed 8 points higher at 4481. However, the outlook for the day may change as Kevin Rudd faces off against Julia Gilliard in a leadership ballot at 9 am.

The benchmark S&P 500 fell for a third day, closing 0.3% lower after the Fed downgraded its outlook for the U.S. economy and new-home sales hit a record low. The Dow Jones Industrial Average squeezed out a five-point or 0.05% gain and the Nasdaq fell 0.34%.

May new-home sales in the U.S. plunged more than 32% from the month before as a tax incentive expired. The sales were the lowest since records began in 1963 and the fall was worse than the 20% drop expected by economists.

The market recovered some ground after the Fed left its key interest-rate target near zero, as expected, but the gains mostly evaporated as traders digested the downbeat tone of the statement released at the close of the meeting. Analysts said the language used to describe the strength of the recovery was more tentative than the last outlook.

"Overall, it's not a positive outlook that they're describing here, which is the important thing," a strategist at Robert W. Baird told MarketWatch. "We just don't expect a new leg up in the bull market at this point. We're not changing our portfolio allocations, but we are holding a lot of cash."

Resource prices mostly fell as traders factored in the prospect of weakening U.S. demand. Oil was also hurt by a jump in U.S. stockpiles. Crude futures were recently down $2 or 2.6% at $75.85 a barrel.

Industrial metal prices were mixed but mostly lower, with copper giving back Tuesday's gains. Copper dropped 2% in the U.S. In London, aluminium, nickel, lead and tin fell but zinc gained.

Gold came through a choppy session little changed after recovering from an early fall in New York. The spot price was recently $1.20 lower than Tuesday's New York close at $1,237.40 an ounce.

European shares retreated for a second day, pressured by worries about bad debts among banks and the late news of weak U.S. home sales. Britain's FTSE slid 1.31%, Germany's DAX 1.03% and France's CAC 1.71%.

TRADING THEMES TODAY

LEADERSHIP CHALLENGE: We could be in for a wild ride, depending on how this morning's Labor leadership ballot plays out. Hold on to your hats.

U.S. UNDER PRESSURE: Bulls can take some comfort from the fact Wall Street survived some poor overnight data with minimal damage. Much of that can probably be put down to the Fed re-affirming the prospect of cheap borrowing for some time to come, which is broadly supportive of equities (no point having cash in the bank if it's earning next to nothing). However, economic reports continue to disappoint and the Fed is flagging the danger of another downturn.

ECONOMIC NEWS: The Conference Board's monthly leading index of economic indicators is due at 10 am. Tonight's menu in the U.S. includes: monthly durable goods orders, unemployment claims and natural gas storage.

Good luck to all.