daytrading dec 6 pre-market

Morning traders.

Market wrap:

Shares are pointing towards an eight-week low after global markets extended their worst losing run in several months as strong US economic data raised taper expectations.

The December SPI 200 futures contract dropped 17 points or 0.3% to 5194 following a horror session on the ASX yesterday that generated the equity market's heaviest decline since August 7.

US stocks fell for a fifth night, extending their longest losing run since September as improved economic news gave the Federal Reserve more reasons to reduce its stimulus spending. The S&P 500 lost eight points or 0.44% with financials and telecoms leading the retreat. The Dow dropped 68 points or 0.43% and the Nasdaq 0.12%.

The falls followed news of an acceleration in economic growth, a drop in jobless benefit claims and a statement from a Fed official that the 'taper' should be discussed at this month's central bank meeting.

"The combined effect of these three developments has sent US indices and gold into another tailspin," Colin Cieszynski, senior analyst at CMC Markets, told MarketWatch.

US economic growth accelerated to an annual rate of 3.6% last quarter, the fastest pace in a year and a half. The increase from a pace of 2.8% the previous quarter was well ahead of the 3% rate anticipated by economists. First-time claims for unemployment benefits declined by 23,000 last week to 298,000, but the numbers were treated with some caution due to the effects of the Thanksgiving public holiday.

Atlanta Federal Reserve President Dennis Lockhart said the possibility of reducing the Fed's bond-buying program should be "on the table" when the board meets on December 17-18. A majority of economists surveyed by Bloomberg expect the central bank to delay any reduction in the program until March.

The Chicago Board Options Exchange Volatility Index, or VIX, rose for an eighth straight night, its longest advance since April 2012. The index of S&P 500 index options is generally seen as a measure of expected volatility over the next 30 days.

BHP and Rio Tinto fell 0.63% and 0.94%, respectively, in US action. Spot iron ore for import to China yesterday eased 20 cents to US$139.50 a dry tonne.

European stocks notched their worst losing run in five months after European Central Bank President Mario Draghi outlined risks to the euro-zone economy as the bank left its major lending rate on hold. The Bank of England also left its key rate on hold. The Stoxx Europe 600 index lost 0.89% as Germany's DAX fell 0.61%, France's CAC 1.17% and Britain's FTSE 0.18%.

Gold gave back most of Wednesday's rebound gains as the economic news undermined demand for counter-inflationary assets. February gold was recently off $20.90 or 1.7% at US$1,226.30 an ounce. The Arca Gold Bugs Index of US miners declined 2.74%.

"Today's quick reversal in gold suggests that yesterday's bounce was a technical rebound from oversold conditions and short covering," Colin Cieszynski, senior market analyst at CMC Markets, told MarketWatch. "In short, a typical bear-market rally."

Energy markets continued to welcome positive economic news, helping oil to a fifth rise. West Texas Intermediate crude for January delivery was lately ahead 13 cents or 0.1% at US$97.33 a barrel.

Nickel and tin rallied after Indonesia pushed ahead with a plan to ban ore exports. In London, nickel advanced 0.7%, tin 1.1% and zinc 0.1%. Copper fell 0.4% and aluminium 0.8%. Lead was flat. US copper for March delivery was recently down around three cents or 0.9% at US$3.22 a pound.

TRADING THEMES TODAY

BRING ON CHRISTMAS: As someone mentioned yesterday, the end of the year can't come soon enough for many as this nasty downturn erodes portfolio profits. Global markets are weakening fast as the institutions lock in gains at the end of a very good year. Currency factors may also be taking a toll on the ASX, with international money exiting on expectation that the dollar is going lower - take a bow, Glenn Stevens. Whatever the reasons, the mid-October low around 5150 may be in play early next week if this decline continues. A time for caution. Very easy to get caught holding in these conditions.

ECONOMIC NEWS: The AIG Construction Index is due at 9.30am EST. Tonight brings the big US monthly jobs report and unemployment rate, plus personal spending and income, average hourly earnings, preliminary consumer sentiment and inflation expectations, and consumer credit.

Good luck to all.