daytrading august 29 pre-market

Morning traders.

Market wrap:

Shares are likely to open little changed despite a rebound on Wall Street from eight-week lows as energy stocks benefitted from the soaring price of oil.

The September SPI 200 futures contract ended the night session one point or less than 0.1% stronger at 5069 as caution prevailed ahead of likely western air-strikes against Syria.

The S&P 500 closed five points or 0.28% ahead after giving up roughly half of its early gains. The Dow pared a rise of 91 points to a final tally of 49 points or 0.33% and the Nasdaq put on 0.4%.

"We're simply just seeing a little bit of bounce back from what was very bad action [on Tuesday night]," the chief investment officer of Greenwood Capital Associates in the US told Bloomberg. "There are probably starting to be opportunities that are being created in certain segments of the market as a result of this sell-off, and investors are wisely looking to see if they can take advantage of some of those."

Energy stocks led the recovery as crude oil hit a two-year high. Global giants Chevron and Exxon Mobil both rallied at least 2.3%. West Texas Intermediate crude oil for October delivery was lately trading 52 cents or 0.5% higher at US$109.55 a barrel after earlier breaking above US$112 a barrel.

"While Syria is not a major concern with oil supplies, the biggest concern is a spill-over to a wider conflict in the region," a managing member at Tyche Capital Advisors told MarketWatch. "If Israel gets involved or [the turmoil] spreads to other nations in the region then we could be talking about a supply disruption. Markets should be well supported on these fears."

British Prime Minister David Cameron said he would put forward a resolution to the United Nations today sanctioning moves to protect Syrian civilians. A US official said the US was in contact with NATO and Arab allies to discuss which nations will take part in air-strikes against al-Assad targets following the government's alleged use of chemical weapons last week.

Economic data had minimal impact on the broader market. A report showed pending house sales declined 1.3% last month as rising mortgage rates undermined demand. Mortgage rates in the US are linked to bond yields, which have been rising since the Federal Reserve said it is likely to start to unwind its US$85 billion a month bond-buying program before the end of the year.

The big two Australian miners recouped some of Tuesday night's heavy losses in US action. Rio Tinto bounced 0.65% and BHP added 0.25%. The price of iron ore continued to hover around US$139 yesterday. The spot price for import to China eased 20 cents to US$138.50 per dry metric tonne.

Gold trimmed yesterday's 2% rally but remained near recent highs. Gold for December delivery was lately off $2.30 or less than 0.2% at US$1,417.90 an ounce after running as high as US$1,434.

Industrial metals came under mild pressure from a rising US dollar and risk aversion ahead of military action in Syria. US copper for September delivery was recently down two cents or 0.7% at US$3.31 a pound. In London, copper dipped 0.3%, aluminium 1.2%, lead 0.5%, nickel 0.3%, tin 0.8% and zinc 1.3%.

The major European markets declined for a third day. Germany's DAX 1.03%, France's CAC 0.22% and Britain's FTSE 0.17%.

TRADING THEMES TODAY

LOOKING FOR A FLOOR: US stocks edged higher overnight without providing a convincing reversal signal. At best, the action was indecisive, which is reflected in a neutral ASX futures reading this morning. Having sold the rumour, the market is likely waiting for military action in Syria before buying back in. There is some meaty economic data due in the next 24 hours, which might help divert attention back to the global economy - European inflation and retail figures tonight, plus preliminary US GDP and weekly jobless claims (see more below). On the domestic front, today's earnings reports include mum-and-dad big-hitters Qantas, David Jones and Westfield. Among the highlights are: DJS, DLS, MQA, PDN, PPT, QAN, RHC, SFW and WDC (sources: Fairfax, BRR).

ECONOMIC NEWS: Quarterly private-capital expenditure figures are due at 11.30am EST. A report on home sales is also due, exact time uncertain. Europe releases retail data and German employment and inflation figures tonight. Highlights in the US include preliminary quarterly GDP data, preliminary GDP price index, weekly unemployment benefits claims and a speech by a Fed board member.

Good luck to all.