daytrading jan 16 pre-market

Morning traders. Thanks Trees.

Market wrap:

The share market has a chance at back-to-back gains for the first time this year after US and German indices hit record levels on an improved global growth outlook from the World Bank.

The March SPI 200 futures contract rallied 24 points or 0.5% to 5229 as quarterly US earnings reports continued to be market-friendly, easing concerns about valuations after last year's 30% market rally.

The S&P 500 advanced nine points or 0.5% to a record close a few hours after Germany's DAX surged 2.03% to an intraday high. The Dow gained 108 points or 0.66% and the Nasdaq added 0.76%.

Shares in Bank of America drove gains in financials after the market heavyweight beat profit expectations, rising 2.33%. The bank said its quarterly profit increased by nearly US$3 billion.

"So far so good with bank earnings this season, and it is very positive that we're seeing significant declines in foreclosures, which is very positive for the economy," David Kelly, chief global strategist for JPMorgan Funds in the US, told Reuters. "The general trend of economic numbers is pretty positive, and helping to get people over the shock of the recent weak payroll report."

Economic data showed manufacturing in the greater New York region rebounded this month and wholesale prices improved for the first time in three months. The Empire State index hit 12.5 this month, its best reading in nearly two years, from a revised 2.2 in December. The Federal Reserve's Beige Book, released late in the session, had little impact, continuing its recent theme of steady but moderate growth.

Europe's benchmark index reached a six-year high after the World Bank predicted an acceleration in the global economy this year. The bank upgraded its growth expectation to 3.2% this year from an earlier prediction of 3% and a reading of 2.4% last year. The Stoxx Europe 600 rallied 0.99% to a level last seen in January 2008 as the DAX gained 2.03%, France's CAC 1.35% and Britain's FTSE 0.79%.

Australia's biggest miners improved in US trade following recent weakness in the price of iron ore. Rio Tinto put on 1.56%, while BHP was little changed at +0.02%. Spot iron ore for import to China inched up 10 cents to US$129.60 a tonne.

Oil was boosted by a seventh straight decline in the weekly US inventories report. West Texas Intermediate crude oil for February delivery was lately up $1.83 or 2% at US$94.41 after earlier settling at US$94.15 a barrel.

Nickel marked a 10-week high as base metals were supported by the World Bank upgrade. In London, nickel gained 1.4% and copper 1%. Aluminium, lead, tin and zinc also rallied. US copper for March delivery was recently up 0.6% or nearly two cents at US$3.35 a pound.

Gold retreated for a second session as the night's economic data supported the case for further Federal Reserve stimulus tapering. Gold for February delivery was recently down $5.50 or 0.5% at US$1,239.90 an ounce after settling at US$1,239.70.

TRADING THEMES TODAY

REBOUND UNTIL JOBS: The ASX has not strung together two wins since Christmas Eve, but that should change today unless the 11.30am EST December jobs report disappoints. Expectations for the report are modest, according to Forex Factory: unemployment steady at 5.8%, job growth down to 10,300 from 21,000 in November. The monthly figures are volatile, but a big variation in either direction will move the market. The 'weak-jobs' panic in the US seems to have blown over, clearing the way for further gains if the earnings season continues to deliver positive surprises. Europe appears to be well and truly on the mend.

ECONOMIC NEWS: Australia releases the monthly inflation expectations report at 11am EST, but the day's main event is the 11.30am jobs report and unemployment rate. Europe has consumer inflation data due tonight. A busy night ahead in the US includes consumer inflation/core CPI, weekly jobless claims, the Philly Fed Manufacturing Index, long-term purchases, housing market index and speeches by Federal Reserve Chairman Ben Bernanke and Treasury Secretary Jack Lew.

Good luck to all.