Daytrading November 17 pre-market

Morning traders. Thanks Trees and after-market regulars.

Market wrap:

Shares look set to snap back strongly this morning after US and European markets shrugged off the Paris terrorist attacks and crude oil rebounded.

The December SPI200 futures contract rallied 64 points or 1.3% to 5058 as US stocks broke a three-session losing run.

Energy stocks spearheaded the rally in the US after European markets turned positive ahead of the opening bell on Wall Street. The S&P 500 surged 30 points or 1.49%, closing at its session high with all ten industry groups ahead. The advance was only the index's second in nine sessions since Federal Reserve Chair Janet Yellen signalled a December rate increase is likely. The Dow put on 238 points or 1.38% and the Nasdaq 57 points or 1.15%.

“Investors have become resilient in the face of terrorist attacks that rock the world too frequently nowadays," Art Hogan, chief market strategist at Wunderlich Securities in the US, told MarketWatch. "In terms of lives lost, the Paris terrorist attack was a terrible tragedy. [But] the market reaction is an indication that there is no direct economic impact of the attacks so far."

France's benchmark index, the CAC, closed just 0.08% lower after being down as much as 1% following sharp falls in travel-related stocks. The Stoxx Europe 600 rose 0.3%, Germany's DAX 0.05% and Britain's FTSE 0.45% as traders bought companies with exposure to national defence. Trading volumes were a fifth below the recent average.

Defensive assets such as the US dollar and gold saw gains, though the precious metal gave up most of its rally as the share market recovery gathered pace. The US dollar index was lately up 0.24%, pushing the Australian dollar back below 71 US cents to 70.98 US cents. Spot gold set a 10-day high at US$1,097.90 an ounce before fading back to break-even, lately trading at US$1,083. Gold for December delivery settled $2.70 or 0.3% ahead at US$1,083.60 an ounce. The NYSE Arca Gold Bugs index gained 0.59%.

Energy stocks led the US rally after crude oil bounced off the US$40 a barrel level and snapped a three-session losing run. The US energy ETF bounced 3.33%. West Texas Intermediate crude oil for December delivery settled $1 or 2.45% ahead at US$41.74 after falling as low as US$40.06, a natural entry level for bargain-hunters and for short-sellers to cover.

BHP rallied for a second session in the US. The Big Australian put on 0.92%. Rio Tinto dropped 0.15%. Spot iron ore for import to China yesterday eased 10 cents to US$47.30 a dry ton.

Copper plumbed a new six-year low as the rising greenback dulled demand for industrial metals. London copper shed 2.8%, aluminium 1.6%, lead 0.9%, nickel 1.2%, tin 0.3% and zinc 2.1%. US copper for December delivery was recently off 2.1% at US$2.12 a pound.

'We're struggling to see light at the end of the tunnel," Cantor Fitzgerald analyst Asa Bridle told Reuters. "Things aren't getting any better in China, we can't see what is going to turn things around for industrial metals."

TRADING THEMES TODAY

ECONOMIC RATIONALISM: The share market is an unsentimental place. While the psychological impact of the Paris attacks is immense and the human cost immeasurable, what matters in the marketplace is dollars and cents. History shows that markets recover quickly from terrorist attacks, so the reaction is more muted each time. The reality is that equity markets ended last week short-term oversold and ready to rebound. Short-sellers likely used the gloomy open as an opportunity to cover, as appeared to be the case here yesterday. Defensive assets attracted buying in the US, but the rebound in gold quickly petered out. Yesterday was another cracking day at the speculative end of the market. It will be interesting to see if there is as much enthusiasm now the big end is back on the upswing.

ECONOMIC NEWS: The minutes from this month's RBA monetary policy meeting are released at 11.30am EST. Tonight's US highlights include the consumer price index/core CPI., industrial production, capacity utilisation rate, mortgage delinquencies, housing market index and long-term purchases.

Good luck to all.