Daytrading November 27 pre-market

Morning traders. Thanks again for all the kind words yesterday. Best of luck to Speckled for next week (will post a list of useful links later). Congratulations to Mitta on his medical 'all-clear'.

Market wrap:

A rebound in industrial metals and a three-month high in European stocks point to a positive start to Australian share trade this morning.

The December SPI200 futures contract rallied 16 points or 0.3% to 5242, suggesting a second day of gains after the ASX yesterday broke a two-session losing run. However, BHP may be a drag after falling 2.38% in UK trade following accusations from UN experts that a dam failure spilled "high levels" of toxic waste into a river system in Brazil.

With Wall Street closed for Thanksgiving, European markets cruised higher on expectations of more central-bank stimulus measures following a Reuters report that the European Central Bank is exploring an expanded bond-buying program. The Stoxx Europe 600 rallied 0.93% to its highest level since August 18. Germany's DAX added 1.35%, France's CAC 1.08% and Britain's FTSE 0.88%. Read more here.

"Expectations surrounding the ECB are running very high and this is driving European markets higher, weakening the euro and helping them do better than US stocks," Marco Vailati, head of research and investment at Italy's Cassa Lombarda, told Reuters. "I think and hope the ECB will not disappoint but I realise that it won't be that easy."

The ECB meets on Tuesday and is widely expected to announce new measures to boost the euro-zone economy. Options included broadening the range of debt the bank is willing to buy, and penalising banks that hoard cash with the central bank instead of lending. Read more here. The Reuters report depressed the euro, providing a leg-up for exporters.

US equity futures followed Europe higher. S&P 500 futures were lately up 7.25 points or 0.35%. Dow futures were up 47 points or 0.26%. US markets re-open tonight for a holiday-shortened session that is expected to be thinly traded. The New York Stock Exchange will close at 1pm New York time.

Also helping sentiment overnight was a sharp rebound in industrial metals following reports that China is moving to stem heavy selling that has driven most metals to multi-year lows. Chinese copper and nickel producers are meeting to discuss production cuts and have asked the central government to consider state purchases, according to Bloomberg. London-traded copper closed 1.9% higher after earlier surging as much as 4.2%. Aluminium rose 2.8%, lead 1.6%, nickel 3.1%, tin 1% and zinc 1.6%.

BHP slid 2.38% to a fresh seven-year low in the UK despite refuting UN claims that a spill from a tailings dam in Brazil is highly toxic. Read more here. Rio Tinto rallied 0.96% in UK trade. Spot iron ore for import to China yesterday edged up 20 cents or 0.5% to US$43.60 a dry ton.

Oil retreated as concerns about a flare-up between Turkey and Russia faded. West Texas Intermediate crude oil for January delivery declined 53 cents or 1.2% to US$42.51 on thin trade. Brent for January settlement dropped 71 cents or 1.5% to US$45.46 a barrel.

Gold hovered near a five-year low with minimal trade. Spot gold last traded at US$1,071.60 an ounce, just 30 cents off Wednesday night's closing price.

The dollar was this morning buying 72.32 US cents.

TRADING THEMES TODAY

REBOUND CONTINUES?: We have broadly positive leads for the session ahead: Europe, US futures, base metals and Rio all improved. BHP and oil declined. Gold was neutral. On balance, there should be enough in that lot for a positive open. There is no major economic news scheduled in the next 24 hours to change the market dynamic, so we should have a decent end to a choppy week. Plenty of movement and runners this week. Been another good 'un. Thanks again to all who took something from these pre-market wraps over the years.

ECONOMIC NEWS: No significant news scheduled here today or in the US tonight.

Good luck to all.