Morning traders. Market wrap: Shares have mixed leads for the...

Morning traders.

Market wrap:

Shares have mixed leads for the first session of the year after a disappointing Chinese manufacturing report took some of the shine off record closes on Wall Street.

Trading in the March SPI 200 futures contract ceased at 2.30pm EST on New Years Eve, with the contract at 5318. Since then, upbeat US economic figures have helped Wall Street wrap up its best year since 1997 with further gains on Tuesday night and China has released a report showing manufacturing growth slowed more than expected last month.

The official Chinese manufacturing Purchasing Managers Index dropped to a four-month low of 51 in December from 51.4 in November, according to a report released yesterday. Economists polled by Dow Jones had anticipated a reading around 51.2. HSBC is due to release a rival index today that is also expected to indicate a deterioration in growth. Read more here.

A late kick on Tuesday night saw two out of three of Wall Street's major benchmarks close the year at all-time highs. The S&P 500 advanced seven points or 0.38% to 1,848 for an annual gain of 29.6%. The Dow put on 73 points or 0.44%, closing at 16,577 for a 12-month tally of 26.5%, its best return since 1995. The Nasdaq gained 23 points or 0.55% for a 38% return for 2013, but remains short of the level seen at the peak of the dot-com boom in 2000.

"This has been a terrific year, with all the concerns we had in January proving unfounded, and with current economic growth giving us a strong outlook for 2014," John Carey, portfolio manager at Pioneer Investment Management in the US, told Reuters. "There's been a generally positive trend to news, including the confidence report, which bodes well for conditions next year and gives us really no reason to sell."

US data on Tuesday showed gains in consumer confidence and house prices offsetting a decline in the pace of business activity in the greater Chicago region. The Conference Board's consumer confidence index improved more than expected to 78.2 last month from a revised 72 in November. The Case-Shiller home-price index for October increased 0.2%. The Chicago Business Barometer declined more than expected to 59.1% last month from 63% in November but remained well above the 50% level that indicates expansion.

BHP and Rio Tinto extended gains in US trade as tropical cyclone Christine appeared to spare iron ore facilities in WA from serious damage. The storm was yesterday downgraded to a category one system as it moved inland. BHP rallied 0.69% and Rio put on 0.43%. Spot iron ore for import to China was unchanged on Tuesday at US$134.20 a dry tonne.

Energy stocks were the pick of the 10 industry groups in the US, rising 0.9% despite a mild deterioration in the price of oil. West Texas Intermediate crude for February delivery ended the session 58 cents or 0.6% lower at US$98.70 after earlier settling at US$98.42 a barrel

Gold stocks also enjoyed a good session, with the NYSE Gold Bugs index rising 2.42% as the metal closed the session little changed. Gold for February delivery edged up 80 cents or 0.1% to US$1,204.60 after earlier settling at US$1,202.30 an ounce. The metal lost roughly 28% last year, its worst performance in three decades.

Copper ended 2013 on an upswing in the US despite earlier weakness on the London Metal Exchange. US copper for March delivery rallied 0.5% or nearly two cents to US$3.40 a pound. In London, copper slipped 0.2% and aluminium, lead, nickel, tin and zinc all lost ground.

The major European markets ended holiday-shortened sessions mixed on Tuesday night. Germany's DAX slipped 0.39% while France's CAC advanced 0.47% and Britain's FTSE put on 0.26%. The Stoxx Europe 600's 12-month return of 17% was the index's best in four years.

TRADING THEMES TODAY

NEW YEAR OPTIMISM TO TRUMP CHINESE WORRIES?: There are no index futures to steer sentiment this morning until the SPI recommences trading at 9.50am EST. Still, it's likely all that New Year enthusiasm and the late rally on Wall Street will translate into early gains on the ASX. After that? Depends how seriously the market takes the gentle deterioration in Chinese data. Unfortunately, trading in China and Japan remains suspended for public holidays today, so the ASX will have to work it out for itself. HSBC's final manufacturing report is due at 12.45pm - any change from the initial reading of 50.5 may also impact trading sentiment here. None of this matters much at the spec end, which can get frothy at this time of year.

ECONOMIC NEWS: The AIG Manufacturing Index is due at 9.30am EST, but the biggest interest during trading hours is the 12.45pm EST release of the final version of HSBC's Chinese manufacturing PMI for December. US dataflow gets back underway tonight with weekly jobless claims, rival manufacturing PMIs, manufacturing prices and construction spending.

Good luck to all.