Morning traders. Thanks Trees and also Gttrain and Shantaram for...

Morning traders. Thanks Trees and also Gttrain and Shantaram for stepping up yesterday while I played Florence Nightingale to Mrs HLL.

Market wrap:

Shares are set to open higher after improved US economic data helped steady nerves on Wall Street over likely rate increases next year.

The June SPI 200 futures contract, now the most active, advanced 21 points or 0.4% to 5318 despite pressure on commodity prices as the US dollar extended Wednesday's gains.

The S&P 500 opened in the red before swinging to a gain of 11 points or 0.6% after factory data and leading indicators maintained the recent run of improving economic signals. The Dow added 109 points or 0.67% and the Nasdaq 11 points or 0.26%. The rally reversed some of Wednesday's losses, which came after new Federal Reserve chair Janet Yellen surprised the market with a suggestion that a rate rise could come in the first half of next year, sooner than most analysts expected.

"The market has digested and even discounted a bit what Yellen said, and put things into perspective," Stephen Carl, principal at Williams Capital Group in the US, told Bloomberg. "We have to see how the economy continues to move along. People are back focusing on signs of economic growth."

The Conference Board's leading economic index, which attempts to predict the near-term strength of the economy, jumped 0.5% last month after a 0.1% rise in January and a 0.1% decline in December. Factory activity in the greater Philadelphia region rebounded to 'normal' levels this month following an unexpected contraction during harsh weather in February. The Philadelphia Fed manufacturing index rose to 9.0 from -6.3, well above the economists' forecast of 3.5.

First-time claims for jobless benefits increased less than expected last week. Claims rose by 5,000 to a seasonally-adjusted 320,000, versus the 325,000 estimate of economists polled by MarketWatch. Sales of existing homes continued to weaken last month, in line with expectations.

Financials and telecoms led an uneven rally. The closely-watched Dow Jones Transportation Average fell 0.1% and the Morgan Stanley Cyclical Index advanced a tepid 0.15%.

A second day of solid gains in the greenback on the prospect of rising rates dampened interest in alternative assets, including oil and metals. West Texas Intermediate crude for April delivery were lately down 99 cents or 1% at US$99.38 a barrel after settling at US$99.43.

Precious metals declined for a fourth straight night, with gold extending its losses over the run towards 4%. Gold for April delivery was recently off $13.80 or 1% at US$1,327.50 an ounce after settling at US$1,330.50. May silver settled 40 cents or 1.9% lower at US$20.43 an ounce.

US economic data did little for base metals as Chinese and currency concerns dominated trade. US copper for May delivery was recently down 1.9% or six cents at US$2.93 a pound. In London, copper fell 1.9% and nickel 3%. Aluminum, zinc, lead and tin also retreated.

The big two Australian miners clawed back some of Wednesday's losses in US trade. BHP bounced 0.99% and Rio Tinto edged up 0.11%. Spot iron ore for import to China rose 20 cents to US$110.70 a dry tonne yesterday.

European stocks reversed initial losses to close little changed. The Stoxx Europe 600 index closed near break-even at +0.01% as Germany's DAX rose 0.2%, France's CAC added 0.46% and Britain's FTSE lost 0.47%.

TRADING THEMES TODAY

STABILISING: Markets resumed normal business overnight after serving Janet Yellen a warning shot on Wednesday. Financials led the recovery in the US and will likely have to do repeat the feat here to offset weakness among the miners after a soaring greenback sapped commodity prices. Iron ore seems to have settled around current levels but copper looked wobbly again overnight. US gold miners shrugged off a fourth straight dip in the metal - the Gold Bugs Index rose 0.59%. Back home, the heat is back in the speculative end of the market, providing excellent trading opportunities.

ECONOMIC NEWS: The Conference Board's Australian leading index is due at 10am EST. The European Union enters the second day of an economic summit tonight. Attention in the US will likely be fixed on a trio of speeches from Fed board members tonight.

Good luck to all.