Day trading pre-market open December 10

Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.


Outlook for the day: Positive as the market looks to regain its footing after yesterday's warning from the RBA that the next move in rates is likely to be upward. Wall Street closed little changed overnight. ASX heavyweights BHP and Rio Tinto posted solid gains in overseas action. Silver set a new record.

ASX futures: up 24 points or 0.28%


Overnight themes: ​

• US stocks closed mixed but little changed as investors waited for the Federal Reserve to clarify whether tonight's expected rate cut is likely to be the last for some time. ​
• The S&P 500 closed 0.09% lower after giving up mid-session gains. The Dow Jones Industrial Average faded to a loss of 179 points or 0.38% as JPMorgan Chase dragged. The Nasdaq Composite firmed 0.13% as investors narrowly favoured growth sectors over value counterparts.​
• The odds on a rate cut at the final policy meeting of the year tonight held around 87% despite a jump in job openings. Data delayed by the federal government shutdown showed job openings - a proxy for labour demand - hit a five-month high October. ​
• While markets have priced in a cut, the reaction tonight is likely to be determined by the outlook for further cuts next year. “While a rate cut feels almost certain at this point, the Fed’s economic projections and Chairman Powell’s commentary will play a big role in how markets react — not only this week, but it could possibly set the tone for the remainder of the month,” Bret Kenwell, US investment analyst at eToro, told CNBC. “After the recent pullback in stocks and crypto, risk-on investors are hoping the Fed will grease the rails for a year-end rally rather than pour cold water on the recent rebound.”​
• Bank stocks dragged after JPMorgan Chase flagged a big increase in expenses next year. Shares in the bank dropped 4.65%. The S&P financial sector dipped 0.39%. ​
• An initial rally in Nvidia faded after President Donald Trump said he would permit the chipmaker to ship its second-most powerful AI chip to China with a 25% payment to the US federal government. Shares in Nvidia closed 0.31% lower as the announcement faced opposition from China hawks in Congress and likely resistance from Beijing. ​
• Energy and consumer staples were the best of the S&P sectors, advancing 0.69% and 0.38%, respectively. Drags included health -0.98% and industrials -0.73%. ​
• Silver burst through US$60 an ounce for the first time amid growing expectations that industrial applications will fuel demand for decades to come. Spot silver was lately up US$2.54 or 4.36% at US$60.66. "People are anticipating that there's going to be strong industrial demand for silver for years to come," Fawad Razaqzada, market analyst at City Index and FOREX.com, told Reuters. A Silver Institute research report forecast strong demand from solar energy, electric vehicles, AI and data centres. Gold also rose as traders added to bets the Federal Reserve will cut official US rates tonight. Spot gold was lately trading US$22.93 or 0.55% higher at US$4,213.09 an ounce. Earlier, US gold futures settled US$18.50 or 0.4% ahead at US$4,236.20. "The move in gold right now is attributed to the big spike in silver and the high expectations for another quarter-point cut," RJO Futures senior market strategist Bob Haberkorn told Reuters. ​
• Iron ore sagged to its lowest since July as the first shipment from Rio Tinto's part-owned new Simandou mega-mine set sail from West Africa for China. The project in Guinea threatens to disrupt the traditional Australia-Brazil supply duopoly in iron ore and potentially undermine prices, according to analysts. The project is set to be the largest in the world, adding around 120 million tons per year to global supply. Benchmark ore on China's Dalian Commodity Exchange declined 0.72% in daytime trade to US$107.22 per metric ton. ​
• Copper pulled back from Monday's record during a soft session for base metals as the US dollar index crept higher, raising prices of dollar-denominated commodities for buyers using other currencies. Benchmark copper on the London Metal Exchange dropped 1.42% to US$11,470 per metric ton. The metal had risen 31% this year, gaining around 10% in the last few weeks. "It's been a phenomenal run-up and as we scale these highs, some nervousness may creep in and there will be corrections along the way," Ole Hansen, head of commodity strategy at Saxo Bank, told Reuters. "A bit of caution is emerging ahead of the (US rates) meeting... which could be one of the reasons behind the profit-taking we're seeing today."​
• Falling prices and increased supply helped drag oil lower for a second day. Saudi Arabia cut its selling price premium to Asia to the lowest in five years. Meanwhile, Iraq added around 0.5% to global supply with the restoration of its West Qurna-2 field following a pipeline leak. Brent crude settled 55 US cents or 0.88% lower at US$61.94 a barrel. ​

Key events today: ​

• China inflation data - 12.30 pm AEDT​
• US Federal Reserve interest rate decision - tonight​
• US Employment Cost Index - tonight​

S&P 500: down 6 points or 0.09%

Dow: down 179 points or 0.38%

Nasdaq: up 31 points or 0.13%

VIX: up 0.72% to 16.78

US 10-year treasury yield: up 2points to 4.188%

Dollar: up 0.19% to 66.4 US cents

Iron ore (Dalian): down 0.72% to US$107.22

Brent crude: down 55 US cents or 0.88% to US$61.94

Gold (futures): up US$18.50 or 0.4% to US$4,236.20

Gold (spot): up US$22.93 or 0.55% to US$4,213.09

NYSE Arca Gold Bugs: up 3.27%

Silver (spot): up US$2.54 or 4.36% to US$60.66

Antimony (China ore): don 1.39% to US$18,537

Bitcoin: up 2.66% to US$93,143

Copper (LME): down 1.42% to US$11,470

Nickel (LME): down 0.91% to US$14,750

Lithium carbonate (China spot battery grade): down 0.06% to US$11,578

Global X Lithium & Battery Tech ETF: up 0.74%

Uranium (spot): down 0.07% to US$76.50

Global X Uranium ETF (URA): up 0.82%

BHP: up 1.15% (US); up 1.09% (UK)

Rio Tinto: up 1.9% (US); up 0.95% (UK) ​