daytrading nov 23 pre-market

Morning traders.

Market wrap:

Shares likely face a flat start after upbeat Chinese factory data lifted European shares and most metals overnight.

With Wall Street closed for the Thanksgiving public holiday, the December SPI 200 futures contract last traded at midnight EST four points or 0.1% higher at 4427.

European markets rallied for a fourth day as yesterday's November factory report raised hopes that the Chinese economy is finally accelerating. The Stoxx Europe 600 index advanced 0.59% as Germany's DAX put on 0.84%, France's CAC 0.59%, Britain's FTSE 0.68%, Spain's IBEX 35 0.9% and Italy's FTSE MIB 1.04%. Dow futures put on 34 points or nearly 0.3%.

The gains came as improved factory data from China offset weak figures from Europe. HSBC's preliminary Chinese November report yesterday topped the 50-point mark that indicates expansion for the first time in 13 months, coming in at 50.4. In contrast, European gauges released overnight pointed to a continued contraction in manufacturing and services activity in another signal that the euro-zone is sagging back into recession. The preliminary Markit euro-zone composite purchasing managers' index inched up to 45.8 from 45.7 but remained stalled below the 50-point level.

"The Chinese data is a positive and explains why you have a positive stock market," a senior European economist at RBC Capital Markets in the UK told MarketWatch. "It indicates that growth is starting to come back. In this environment, you take growth where you can find it."

European traders were also cheered by hints that a Greek debt deal may be imminent. German Chancellor Angela Merkel said a deal is possible when euro-zone finance chiefs re-assemble on Monday, following an inconclusive end to talks earlier this week.

Most base metals recorded modest gains on the back of China's manufacturing report and softness in the US dollar. US copper for December delivery was recently up half a cent or 0.1% at US$3.50 a pound. In London, copper rallied 0.3%, aluminium 0.7%, lead 0.6%, tin 0.2% and zinc 0.3%. Nickel lost 2.7%.

Gold extended Wednesday's gains in electronic trade as a declining greenback encouraged traders to explore alternative stores of wealth. Gold for December delivery was lately up $1.30 or 0.1% at US$1,729.50 an ounce.

Oil gave back some of its recent gains as a temporary cease-fire between Israel and Hamas eased tensions in the Middle East. West Texas crude for January delivery was recently down 26 cents or 0.3% at US$87.12 a barrel.

TRADING THEMES TODAY

CONSOLIDATING THE GAINS: A strong rebound-week on the ASX is unlikely to offer much change today as Japan closes for a public holiday, the Shanghai Composite wallows near a four-year low and traders wait for tonight's reaction from Wall Street to recent events. European markets advanced just about enough overnight to justify yesterday's jump on the XJO but the index tends not to stray too far while Wall Street is closed and may give some back today. Shanghai dropped another 0.7% yesterday as traders interpreted the upbeat manufacturing report as another nail in hopes for more QE in China. The Composite is back near the psychologically-significant 2000-point level it last saw in September. Tonight's US session ends early at 1pm and traditionally sees low volumes, with many traders staying away for a Thanksgiving long weekend.

ECONOMIC NEWS: No significant domestic data scheduled for release today. Trading in Japan is suspended today for a public holiday. European leaders tonight continue a two-day meeting to discuss Greece, Spain and budget issues. The US will release no important economic data during tonight's truncated Thanksgiving long-weekend trading session.

Good luck to all.