daytrading june 19 pre-market

Morning traders.

Market wrap:

US stocks hit their highest level of the month overnight, pointing the way towards further healing on the ASX today.

With 30 minutes of the night session left, the June SPI 200 futures contract was ahead 27 points or 0.5% at 4847 as the Dow recorded its sixth straight triple-digit move and iron ore advanced for a fourth day.

A 13-point or 0.79% rally on the S&P 500 overnight brought the index's two-day gain to 1.5% as US traders took a more sanguine view of tonight's Federal Reserve policy statement and press conference. The Dow put on 138 points or 0.91% and the Nasdaq added 0.87%. Volatility on Wall Street has jumped since Federal Reserve Chairman Ben Bernanke hinted last month that the central bank may start to wind back its stimulus program if the economy gathers pace.

"You can bet your last dollar, [Bernanke] is going to try to assure the markets that the Federal Reserve is not going to taper anytime soon," the chairman of Hugh Johnson Advisors in the US told MarketWatch. "The Fed meeting is the biggest issue, yesterday and today."

Cyclical stocks led the rally as reports showed inflation is under control and the housing recovery is on track. The Morgan Stanley Cyclical Index advanced 0.77% and the Russell 2000 index of small caps surged 1.23% to a record close.

Housing starts jumped 6.8% last month, reversing losses in April. Building permits eased 3.1% following a 12.9% spurt in April, a decline anticipated by economists. The consumer-price index increased by a seasonally-adjusted 0.1%, just below expectations.

The failure of the G8 talks to produce a breakthrough on the conflict in Syria helped oil extend recent gains overnight. West Texas Intermediate crude for July delivery was recently ahead 67 cents or 0.7% at US$98.44 a barrel.

Australia's big two miners enjoyed mixed fortunes in US action despite a fourth straight advance in iron ore. BHP fell 1.06% while Rio added 0.43%. Spot iron ore for import to China rallied $2.70 to US$117.70 per dry metric tonne.

Gold dropped to a four-week low as inflation remained subdued and traders reduced exposure in case the Fed signals a reduction in stimulus tonight. Gold for August delivery was lately down $16.20 or 1.2% at US$1,366.90 an ounce.

Copper hit a six-week low following news of a slowdown in Chinese house price rices. US copper for July delivery was recently off 1.4% or four cents at US$3.15 a pound. In London, copper fell 1.1%, aluminium 0.2%, lead 0.9%, nickel 1%, tin 1.6%. Zinc was unchanged.

TRADING THEMES TODAY

REBOUND CONTINUES: The ASX has been showing signs of recovery for a few days now and should continue to claw back its losses today, despite a sagging dollar (currently buying 94.85 US cents). The on-going rebound in iron ore is a big positive, but the market will have to deal today with soft overnight metals prices. There is no significant market-sensitive economic news due today to muddy the waters.

ECONOMIC NEWS: Rival leading indexes are due at 10am EST and 10.30am. The only event that matters overseas tonight is the US Federal Reserve policy statement and press conference at 4am.

Good luck to all.