Morning traders.
Market wrap: Firmer commodity prices may help Australian stocks open modestly higher for a fifth straight day despite a flat night on Wall Street.
Futures traders expect our market to open 8 points ahead after a softening U.S. dollar saw strong buying in oil and metals. The March SPI futures contract closed at 4758.
U.S. stocks made a bright start to the session on upbeat economic news but faded before the close for a second straight night. The S&P 500 closed near even at +0.04%, the Dow slipped 9 points or 0.09% and the Nasdaq finished flat.
Investors were initially cheered by news that private-sector companies shed fewer jobs in February than any month since January 2008. Analysts said the numbers raised the prospect of a rise in employment next month for the first time in two years and eased fears over tomorrow night's key government jobs report.
Also helping sentiment was news that the services sector grew at the fastest pace in at least two years last month and the Federal Reserve's beige book of regional economic indicators confirmed signs of gradual economic recovery.
Health-care stocks faded after President Obama urged Congress to pass health-care legislation that investors fear will crimp profits. Financial stocks were mostly weaker and resource stocks stronger.
The U.S. dollar was sold down as a Greek "austerity plan" bolstered the euro. The Greek government announced steep cuts in civil service salaries and entitlements and will raise its sales tax. The U.S. dollar index, which tracks the greenback against six major currencies, was recently down 0.7%.
Copper hit a seven-week high, up 1.2% in London despite Chilean mines resuming production. Aluminium touched a five-week peak and nickel charged to its highest level since June 2008 as its recent break-out attracted fund buyers. Zinc, tin and lead also advanced.
Optimism about improving U.S. employment overshadowed a big rise in U.S. oil stockpiles. Crude futures were recently up 1.56% at $80.92 a barrel. Weekly inventory data from the Energy Information Administration showed a much bigger increase in stockpiles than analysts expected. Stockpiles rose 4.1 million barrels, against consensus expectations for 1.1 million barrels.
Gold neared its highest level this year. The spot price was recently at $1,139.90 an ounce, up $5.40 on Tuesday's New York close.
European markets advanced for a fourth day, cheered by debt-laden Greece's progress in putting its finances in order. Britain's FTSE rose 0.9%, Germany's DAX 0.7% and France's CAC 0.8%.
TRADING THEMES TODAY
CAUTION CREEPS IN: Tuesday's action in the U.S. was a warning that investors were wary ahead of tonight's housing report and tomorrow night's jobs figures after recent economic data came in weaker than expected. Last night's action was very similar, with a strong start giving way to caution as the session wore on. Weakness in the American dollar will support our resources sector today but we may see profit-taking elsewhere after four days of gains.
ECONOMIC NEWS: National monthly trade balance figures are released at 11.30 am today. Another heavy schedule in the U.S. tonight: monthly pending home sales, unemployment claims, factory orders, natural gas storage and revised non-farm productivity and labour costs.
Good luck to all.
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