Daytrading November 24 pre-market

Morning traders. Thanks Trees and after-market regulars.

Market wrap:

A deepening commodities rout and mild declines in US stocks point to a soft start to Australian share trade after five days of steady gains.

The December SPI200 futures contract slid 15 points or 0.3% to 5270 as copper, nickel, aluminium, lead and gold marked multi-year lows and iron ore fell towards a 10-year nadir.

US stocks tallied minor losses as traders showed little enthusiasm for extending last week's 3% rally ahead of a market holiday for Thanksgiving on Thursday. The S&P 500 eased almost three points or 0.12% with utilities, industrials and tech stocks the biggest drags. The Dow shed 31 points or 0.17% and the Nasdaq two points or 0.05%.

“There are more reasons than usual to sit on your hands during Thanksgiving week,” Matt Maley, equity strategist at Miller Tabak in the US, told Bloomberg. “It’s a combination of a lack of positive reaction in the oil market to help oil rally and concerns a little bit about Brussels. With stuff going on in Europe, people are asking, ‘Do I really need to step to the plate after a 3% rally last week?’ ”

Weak commodity prices and a lockdown in Brussels helped drive European stocks lower. The Stoxx Europe 600 gave up 0.37%, Germany's DAX 0.25%, France's CAC 0.44% and Britain's FTSE 0.46%. The Belgian capital remained at the highest security threat level amid reports of an imminent threat. Meanwhile, French police found what appeared to be an explosives belt in a Paris rubbish bin.

News of a US$155 billion merger between Pfizer and Allergan failed to lift sentiment in the US, with both companies dropping more than 2.6%. The deal will create the world's largest manufacturer of medicines.

In economic news, a manufacturing gauge slumped to a 25-month low this month. Markit's preliminary manufacturing PMI fell to 52.6 from 54.1 in October. A separate report showed housing resales declined 3.4% last month.

BHP and Rio Tinto declined in overseas trade as iron ore slumped perilously close to July's 10-year closing low. The benchmark price for ore for immediate delivery to Tianjin in China fell 80 cents or 1.8% to $US44.20 a ton, just 10 cents above the July low. Read more here. BHP shed 2.3% and Rio Tinto 1.36% in US trade.

Industrial metals continued to ring up fresh multi-year lows on the London Metal Exchange as the prospect of a rate rise next month boosted the US dollar. Nickel fell as much as 6% to a 12-year low before staging a partial recovery. Copper and aluminium plumbed six-year lows and lead its lowest point in five years. London copper closed 2% lower, aluminium 0.3%, lead 1.2%, nickel 5%, tin 2% and zinc 0.9%. US copper for December delivery was recently off 2% at US$2.01 a pound. Read more here and here.

US oilers edged higher despite pressure on oil as a rally faded after Saudi Arabia committed to work with other countries to support prices. The US energy ETF rose 0.72%. West Texas Intermediate crude oil for January delivery jagged as high as US$42.75 before dropping to a loss of 17 cents or 0.4% at US$41.73 a barrel.

US gold miners drifted lower as gold marked its lowest settlement in more than five years. The NYSE Arca Gold Bugs index fell 1.04%. Gold for December delivery settled $9.50 or 0.9% lower at US$1,066.80 an ounce.

The "commodity rout continues (copper has gapped down), sending metals and oil lower as the US dollar creeps north on expectations of euro-weakening ECB stimulus next week and a US rate rise mid-month,” Mike van Dulken, head of research at Accendo Markets, told MarketWatch.

The dollar was this morning buying 71.92 US cents.

TRADING THEMES TODAY

INTO HEADWINDS: Global stock markets are proving remarkably resilient in the face of deteriorating commodity prices. The FTSE came off a bit last night, but Wall Street barely blinked. Mining has a significantly smaller weighting on the ASX than a few years back, but it's still pretty extraordinary how well the XSO and XJO have taken the latest downlegs in iron ore, oil, copper and gold. The Small Ords was within touching distance of a five-month high yesterday as the small end of town continued to outperform the big end. Can it continue? The XJO has given itself plenty of wiggle room if it does retrace. Back in the US, this is likely to be a 'lost week', with traders happy to mark time ahead of Thanksgiving on Thursday.

ECONOMIC NEWS: RBA Governor Glenn Stevens is due to address the Australian Business Economists Annual Dinner at 8.05pm EST tonight. Also tonight, the US releases preliminary GDP figures, consumer confidence, Richmond Manufacturing Index, goods trade balance, house price index and GDP price index.

Good luck to all.