Daytrading September 10 pre-market

Morning traders. Thanks Trees and after-market regulars.

Market wrap:

The share market looks set to give back most of yesterday's strong gains at this morning's open after the prospect of a rate rise next week sent US stocks sharply lower.

The September SPI200 futures contract dived 82 points or 1.6% to 5133 as Wall Street closed on its backside.

A promising early rally in the US inspired by gains in Asia collapsed after data showed job vacancies reached record levels in July, prodding the Federal Reserve towards a rate hike next week. The Dow Jones Industrial Average, which had been up as much as 171 points, faded to a final loss of 239 points or 1.45%. The S&P 500 gave up 27 points or 1.39% and the Nasdaq 55 points or 1.14%.

"That's a market that's thinking the Fed could pull the trigger," Peter Boockvar, chief market analyst at The Lindsey Group, in the US, told CNBC. "The JOLTS data is further evidence the labor market is tightening."

Job openings increased during July by the biggest number in five years to the highest level in the 15 years since the government began recording the data. Vacancies increased by 430,000 to 5.75 million, well ahead of the 5.3 million anticipated by economists polled by Bloomberg. Combined with last Friday's jobs report, the data appeared to increase pressure on the Fed to lift rates from record low levels at next week's policy meeting, which starts on Tuesday night and finishes on Wednesday. Read more here.

Earlier the market opened strongly following robust rallies in Asia amid optimism that governments will extend market-friendly policies. The Nikkei in Japan rocketed 7.71%, the index's biggest gain since the GFC, after Prime Minister Shinzo Abe assured investors his government will slash the corporate tax rate next year. China's Shanghai Composite rallied 2.29% following reports of government buying on Tuesday and after the finance ministry promised fresh polices to stimulate growth. Read more here and here.

The Asian gains helped inspire a third straight rise in Europe, with trade ending before Wall Street slipped into negative territory. The Stoxx Europe 600 put on 1.33%, Germany's DAX 0.31%, France's CAC 1.44% and Britain's FTSE 1.35%.

US stocks followed crude oil lower after the US Energy Information Administration cut its price outlook. The EIA downgraded its 2015 price expectation to an average US$49.23 a barrel from a previous forecast of US$49.62 and reduced its 2016 forecast to US$53.57 from US$54.42. The report helped push West Texas Intermediate crude back below US$45 a barrel and sent the energy ETF down 1.88%. WTI for October delivery settled $1.79 or 3.9% lower at US$44.15 a barrel.

Market heavyweight Apple was another weight on the major indices, easing to a loss of 1.92% after announcing two new iPhones, a new iPad and an Apple TV. Read more here.

Australian giants BHP and Rio Tinto closed in positive territory in the US but well below their session highs. BHP gained 0.47% and Rio Tinto 0.17%. Spot iron ore for import to China yesterday climbed another 50 cents to US$56.90 a dry ton.

Haven buying was notably absent, with a mild rise in the US dollar helping push gold to its lowest level in a month. Gold for December delivery settled $19 or 1.7% weaker at US$1,102 an ounce, the lowest settlement price since August 7. The NYSE Arca Gold Bugs index declined 2.98%.

The mood on the London Metal Exchange was brighter on the expectation that moves by Asian governments will boost demand. London copper rose 0.4% to a seven-week high, lead 1.7%, nickel 1%, tin 0.7% and zinc 0.3%. Aluminium eased less than 0.1%. US copper for September delivery was recently down 0.3% at US$2.43 a pound.

The dollar was this morning buying 70.23 US cents.

TRADING THEMES TODAY

HUNG OUT TO DRY: Wall Street sold Asia and Europe a neat dummy yesterday, with pre-market futures indicating a strong overnight rally and a solid platform for further ASX gains today. Instead we wake to a nasty loss and a reminder that this period of extreme market volatility is not yet over. Wall Street is still range trading, but at a lower level and with much wider swings than we have seen for most of this year. The August low provided good support for the ASX earlier this week and is a long way below today, thanks to two days of impressive gains. No danger of a re-test until tomorrow at the earliest, and even then only if things really sour overseas. There is potential for a mood change at 11.30am EST, with the release of August jobs data and Chinese inflation figures.

ECONOMIC NEWS: The Melbourne Institute releases its August inflation expectations report at 11am EST, but any fireworks this session will come with the 11.30am release of August employment change data and unemployment rate, plus Chinese consumer and producer inflation figures. Tonight's US highlights include weekly benefit claims, import prices, wholesale inventories and crude oil inventories.

Good luck to all.