daytrading may 9 pre-market

Morning traders.

Market wrap:

The share market is set to open at its strongest level in nearly five years after Wall Street's record run stretched into a fifth night and key commodities hit multi-week highs.

The June SPI 200 futures contract rallied 13 points or 0.3% to 5205 as the S&P 500 surged to another all-time closing high in the final hour of trade. That points to the Australian share market opening at a level last seen in July 2008.

Upbeat economic data from Germany and China, plus improved earnings outlooks from Electronic Arts and Whole Foods Market helped the S&P 500 advance seven points or 0.43% to 1,633. The Dow secured a second straight record high, rising 49 points or 0.32% to 15,105. The Nasdaq put on 0.48%.

"We've recovered from the nervousness that we saw in the market in April and we've built a nice base here," the co-chief investment officer of Oakbrook Investments in the US told Bloomberg. "We've gotten through the earnings season and we're turning to the phase in the quarter where economic reports will determine if the market can hold up."

Following yesterday's unexpectedly strong Chinese trade data, overnight data showed German industrial production improved for the first time in six months, raising hopes that the engine room of the European economy is on the mend. March industrial production increased 1.2%, ahead of expectations. The news helped the DAX rally 0.83% to another record close. France's CAC put on 0.88% and Britain's FTSE 0.39%.

US traders once again favoured stocks best placed to benefit from an upturn in the global economic cycle. The Morgan Stanley Cyclical Index rallied 0.91% and financials, raw materials and tech stocks were the best-performing sectors on the S&P 500. BHP advanced 2.48% in US trade and Rio Tinto gained 2.28%.

US dollar-denominated commodities benefitted from a falling greenback as the improved outlook for Germany drew traders back into the euro. West Texas Intermediate crude oil for June delivery was lately up $1.01 or 1.1% at US$96.63 a barrel after earlier settling at its highest level in five weeks.

Gold was this morning again testing the US$1,475 resistance level after securing its best settlement price in nearly a month. Gold for June delivery was ahead $24.40 or 1.7% at US$1,473.10 after settling at US$1,473.70 an ounce.

Copper hit a three-week high following data yesterday that showed strong growth in Chinese exports and imports. US copper for July delivery was recently up six cents or 1.9% at US$3.37 a pound. In late trade in London, copper was up 2.1%, aluminium 1.3%, lead 1.3%, nickel 1.35%, tin 2% and zinc 1.2%.

TRADING THEMES TODAY

BREAKOUT LOOMING?: Another night, another set of all-time highs in the US and Germany. That should be enough for the ASX to open above its recent trading range, raising the possibility of an explosive move to the upside. There is plenty of overhead room for the big two miners and the big banks, so anything is possible. Much will depend on NAB's half-year earnings report and the 11.30am EST release of domestic employment figures and Chinese inflation data. The market expects Australian jobs growth of around 11,500 new hirings during April - not enough to alter the unemployment rate of 5.6%. However, it's worth noting the last two months have delivered huge deviations from expectations. Chinese consumer inflation is expected to have crept up to an annual rate of 2.3% from 2.1%, not enough to undermine stimulus efforts. Long-suffering investors/traders in local goldies have a glimmer of hope after a big rally in precious metals miners in the US last night - the PHLX Gold/Silver Index jumped 5.05%.

ECONOMIC NEWS: The monthly employment report is due at 11.30am EST, including employment change and the unemployment rate for April. China releases its consumer price index and producer price index at the same time. Highlights tonight in the US are weekly jobless claims, wholesale inventories and natural gas storage.

Good luck to all.