daytrading feb 8 pre-market

Morning traders.

Market wrap:

A cautious start to trade is likely after progress in Greece's debt talks helped US stocks and key commodities edge higher.

The March SPI 200 futures contract ended the night session four points or 0.1% stronger at 4251 as the Dow marked a new three-and-a-half year high and oil and gold rallied.

The S&P 500 kicked on late in the session to finish 0.2% ahead after consumer borrowing rose more than forecast, testimony from Federal Reserve Chairman Ben Bernanke kept alive hopes for further monetary easing and another report confirmed improvements in the US jobs market. The Dow added 33 points or 0.26% and the Nasdaq 0.07%.

European markets ended near flat after US stocks turned higher as Greece's Prime Minister prepared to meet with representatives of the European Commission, European Central Bank and International Monetary Fund to hammer out final terms for a second rescue package. Prime Minister Lucas Papademos is due to present the package to leaders of the political parties supporting his government tonight. Britain's FTSE eased 0.03%, Germany's DAX fell 0.16% and France's CAC put on 0.18%.

"We need to see some real austerity from Greece," the chief investment officer at Haverford Trust in the US told Bloomberg. "When we see that, we will have more confidence that Europe is serious about growth. I have confidence that we'll get some sort of resolution that allows for additional funding."

The night's economic reports continued the theme of steady improvement in the US economy. Consumer borrowing increased more than economists forecast in December, a sign that borrowers are feeling more confident about the future. Employment vacancies increased from 3.12 million in November to 3.38 million in December. Meanwhile, Fed chairman Bernanke told the Senate Budget Committee that the Federal Reserve remained concerned about the labour market, keeping alive the prospect of a third round of quantitative easing.

A slump in the US dollar helped oil turn sharply higher. Crude for March delivery was recently ahead $1.80 or 1.9% at US$98.71 a barrel after earlier trading as low as US$95.84 a barrel.

Gold accelerated gains after Bernanke's Senate testimony helped push the US dollar index down more than 0.6%. Gold futures for April delivery were lately up $24 or 1.4% at US$1,748.90 an ounce.

Most industrial metals improved but copper was little changed as falling inventories in London were offset by sluggish demand from China. In London, copper was flat, aluminium added 1.4%, lead 0.4%, nickel 0.1% and tin 2.9%. Zinc fell 0.4%. US copper was recently flat.

TRADING THEMES TODAY

INCHING HIGHER: A pretty dull overnight session left Europe little changed and US stocks fractionally higher. Markets remain in a forgiving mood and shrugged off another delay in Greece's painfully slow progress towards a debt deal. Banks, insurers and oilers ranked amongst the stand-out sectors in the US. Goldies and biotechs lost ground. Earnings reports are due today from ANN, ALZ and BHP (the latter after-market, I think?)

ECONOMIC NEWS: The focus is likely to remain on Greece's debt talks during an unusually light 24 hours ahead here and in Asia and the US. There are no significant domestic reports scheduled today and the highlight tonight in the US is the weekly crude oil inventory report.

Good luck to all.