daytrades march 1 pre-market

Morning traders.

Market wrap: A sliding oil price and overnight gains in US stocks have set up the ASX for a positive open when trade resumes following yesterday's technical stoppage.

The March SPI futures contract ended the night session 20 points or 0.41% stronger at 4846 as Wall Street cemented a third straight month of gains and industrial metals extended Friday's rally.

US investors were cheered by a bullish outlook from investment legend Warren Buffett and further signs of improvement in the US economy. The Dow shook off a mid-session wobble to close 96 points or 0.79% higher. The S&P 500 added 0.56% and the Nasdaq trailled at +0.04%.

"It's a constructive environment," the head of wealth management research for the Americas at UBS Financial Services told Bloomberg. "Whenever Warren Buffett's talking about putting money to work, that's going to have a positive impact on people's views and on the market."

Buffett, nicknamed the Sage of Omaha for his investment skills, told shareholders on the weekend that "Our elephant gun has been reloaded, and my trigger finger is itchy." The news supported hopes that take-over action will accelerate this year.

A mostly upbeat set of economic reports drew investor attention away from turmoil in the Middle East and back to the improving US domestic economy. A regional manufacturing barometer reached its highest mark since 1988, personal incomes improved by 1% and inflation remained benign. House sales remained weak, falling for a second month.

Stock index gains accelerated late in the session as oil slipped back under $97 a barrel. Crude futures were recently off $1.04 or 1.1% at $96.81 a barrel.

Industrial metals continued to recover from last week's sharp sell-off, with copper rising for a third session. In London, copper rallied 1.2%, aluminium 1.1%, lead 1.4%, nickel 2.8%, tin 0.9% and zinc 1%.

Silver pushed to a new 31-year high but gold was little changed as the sliding oil price undermined demand for hedges against inflation. May silver was recently up 97 cents or 3% at $33.90 an ounce. Gold for April delivery was ahead $2.60 or 0.2% at $1,412 an ounce.

The major European markets mostly improved but a sharp fall in HSBC weighed on Britain's FTSE. The FTSE eased 0.12% but Germany's DAX rallied 1.21% and France's CAC added 0.98%.

TRADING THEMES TODAY

REBOUND?: A mostly positive lead for our market this morning after yesterday's premature finish: US stocks up, mainland European shares up, BHP/RIO up in US trade, industrial metals up, gold flat and oil down (the latter is more positive than negative at present). Can't see any reason why our market shouldn't continue to rally off last week's low this morning. There's no danger of an interest rate rise emerging from this afternoon's RBA meeting. Two wildcards to watch today: the oil price, which for now has an inverse relationship with equities, and Chinese manufacturing data due at noon and 1.30 pm.

TECHNICAL PROBLEMS: Let's hope normal service resumes on the ASX this morning. There were no guarantees at time of posting that trading will recommence on schedule at 10 am today (read more here) but the pre-market auction appears to be taking place as usual. Events like yesterday undermine confidence in the bourse and we may see some irregular opening prices today as traders forced to hold uncomfortably large positions overnight dump them early in the session. That may create opportunity, as well as a few heart tremors for other holders. The opening auction should be particularly interesting this morning.

ECONOMIC NEWS: An exceptionally busy newsflow lies ahead, including: the monthly manufacturing index at 9.30 am; monthly retail sales and current account at 11.30 am; Chinese manufacturing indexes at 12.00 and 1.30 pm; an RBA cash rate-setting meeting and statement at 2.30 pm; and year-on-year commodity prices at 4.30 pm. Manufacturing data tops the bill in the US tonight, along with testimony from Federal Reserve chairman Bernanke on monetary policy before the Senate Banking Committee, construction spending, vehicle sales and manufacturing prices.

Good luck to all.