Day trading pre-market open December 2

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

Outlook for the day: The local market looked set to open modestly higher after yesterday pre-empting a soft night on Wall Street. The ASX 200 dropped 0.57% yesterday as a slump in Bitcoin weighed on US equity futures.

ASX futures: up 6 points or 0.07%

Overnight themes:

US stocks broke a five-session win run as bond yields rallied, cryptocurrencies slumped and manufacturing data showed the negative effects of higher tariffs.

The S&P 500 fell 0.53% after an attempted rebound faltered in afternoon trade. The Dow Jones Industrial Average lost 427 points or 0.9%. The Nasdaq Composite shed 0.38%.

“Stocks are going through a period of digestion,” Robert Schein, chief investment officer at Blanke Schein Wealth Management, told CNBC. “But we think the backdrop for stocks remains strong right now, especially given the high likelihood that the Federal Reserve will cut interest rates again next week.”

US manufacturing contracted in November for a ninth straight month as new orders shrank and inflationary pressures increased. The Institute for Supply Management's Manufacturing PMI dipped to 48.2 from 48.7 in October, missing expectations. The New Orders Index dropped to 47.4 from 49.4. The index that tracked inflation rose to 58.5 from 58. The yield on 10-year US treasuries jumped eight points to a one-week high at 4.099%.

Bitcoin slumped in thin trade as surging Japanese bond yields fuelled liquidations. The cryptocoin was lately down more than 6% following a week of notably soft trading volumes that left the market unable to absorb institutional selling as Japan's 10-year yield climbed to a 17-year high. Japanese yields rose after the head of Japan's central bank signalled the Bank of Japan was considering a rate hike. The surge in Japanese yields threatens the so-called "yen carry trade", whereby institutional investors borrow at low yield in Japan to buy higher-yielding assets elsewhere, including US stocks. Cryptostocks took a hit. Coinbase dropped 4.76%. Strategy, which owns more Bitcoin than anyone else, eased 3.25%.

The rise in yields dented assets that compete with bonds for investment flows. The S&P utilities sector fell 2.35%. Healthcare lost 1.49%. Three sectors resisted the selldown: energy +0.91%, consumer discretionary +0.07% and tech +0.02%.

Silver hit a new high as this year's advance surpassed 100%. Spot silver was lately up US$1.74 or 3.08% to US$58.15 an ounce after resetting its record to US$58.83 earlier in the session. "The underlying environment of expectations of further rate cuts, along with inflationary pressure still above the Fed target... is still the underlying support in gold and silver," David Meger, director of metals trading at High Ridge Futures, told Reuters. Spot gold hit a six-week high, aided by a two-week low in the US dollar. The spot price was lately trading US$19.33 or 0.46% higher at US$4,237.14 an ounce. Earlier, US gold futures settled US$19.90 or 0.5% ahead at US$4,274.80.

Copper built on Friday's record after Chinese smelters agree to cut production next year. The China Smelters Purchase Team, which includes the nation's largest smelters, will reduced output by 10% in 2026. Buyers were also encouraged by news that Codelco, the world's largest producer, was hiking the premiums it asks of clients in the US and China. Benchmark copper on the London Metal Exchange firmed 0.39% to US$11,232.50 per metric ton, overhauling Friday's high of US$11,210.50.

Oil rose as Ukraine stepped up its attacks on Russian energy infrastructure and the OPEC+ oil cartel agreed to leave production unchanged for the first quarter of next year to staunch fears of a growing supply glut. A Ukrainian drone attack halted operations at the Caspian Pipeline Consortium export terminal on the Black Sea, which carries around 1% of global oil. Ukraine also attacked two tankers heading to a Russian port. Over the weekend, the Organization of the Petroleum Exporting Countries and allies agreed to pause a series of output hikes this year. Brent crude settled 79 US cents or 1.27% higher at US$63.17 a barrel.

Iron ore added to three weeks of gains after port stockpiles in China dipped 0.42% week-on-week. Also helping market sentiment was a move by Beijing to include commercial properties in an an expanded real estate investment trust market after a payment delay request last week by Vanke drove the developer's shares and bonds to record lows amid fears of a revival of the 2020-23 property crisis that consumed Evergrande. Benchmark ore on the Dalian Commodity Exchange climbed 1.14% in daytime trade to US$113.27 per metric ton.

Key events today:

Building approvals - 11.30 am AEDT

Current account - 11.30 am

Panel discussion involving US Federal Reserve Chair Powell - 12 pm

S&P 500: down 36 points or 0.53%

Dow: down 427 points or 0.9%

Nasdaq: down 90 points or 0.38%

VIX: up 4.53% to 17.09

US 10-year treasury yield: up 8.1 points to 4.099%

Dollar: down 0.12% to 65.43 US cents

Iron ore (Dalian): up 1.14% to US$113.27

Brent crude: up 79 US cents or 1.27% to US$63.17

Gold (futures): up US$19.90 or 0.5% to US$4,274.80

Gold (spot): up US$19.33 or 0.46% to US$4,237.14

NYSE Arca Gold Bugs: up 0.36%

Silver (spot): up US$1.74 or 3.08% to US$58.15

Antimony (China ore): up 0.14% to US$18,781

Bitcoin: down 6.28% to US$85,588

Copper (LME): up 0.39% to US$11,232.50

Nickel (LME): up 0.37% to US$14,875

Lithium carbonate (China spot battery grade): up 0.78% to US$11,774

Global X Lithium & Battery Tech ETF: down 0.6%

Uranium (spot): steady at US$76

Global X Uranium ETF (URA): down 2.41%

BHP: up 0.85% (US); up 0.77% (UK)

Rio Tinto: up 0.06% (US); up 0.79% (UK)