Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:

 

1. China slowing, Europe recovering

New data shows China's factory activity slumped this month, dropping to its lowest pace in almost a year. The HSBC report is "the latest in a string of disappointing data out of China," according to economist Julian Evans-Pritchard of Capital Economics. It has sparked talk of more stimulus by the Chinese government and central bank.

Similar data from the eurozone shows business activity in the region is growing by the most in nearly four years. Traders reacted by bidding up the euro.

 

2. Stock market overview

U.S. stock futures are edging higher Tuesday and most major European markets are pushing up in early trading.

Asian markets ended with mixed results. In China, the Shanghai Composite index inched up by 0.1% after taking a knock earlier in the day. In Hong Kong, the Hang Seng dipped by 0.4%.

 

3. Potential market movers -- Big banks, Facebook

The banking sector has some strength behind it this morning. Shares in Goldman Sachs (GS) and Bank of America (BAC) are pushing forward in premarket trading. Both are up by more than 1%.

Shares in Facebook (FB, Tech30) could be on the move Tuesday after the New York Times reported that the social media giant plans to host news websites' content directly on its pages, allowing users to read stories on Facebook instead of clicking through to external sites.

 

4. It’s all about inflation

The U.S. Bureau of Labor Statistics will release inflation data for February at 8:30 a.m. ET.

In the U.K., inflation data released Tuesday showed consumer prices were unchanged in February compared to the same time last year.

"U.K. inflation has fallen to zero for the first time on record," said Chris Williamson, chief economist at Markit. "Rather than being a concern, the drop in inflation is a boon to the economy, providing households with greater spending power at a time when pay growth remains frustratingly weak."

 

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What is it? It's an assessment of conditions in the financial system and potential risks to financial stability - the evidence on strains and imbalances can provide insight into the future of monetary policy.

When? March 24th at 8:30pm Eastern Time.

Trading Tip: If the announcement will hint towards higher interest rates, you can expect the AUD to rise.

 

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What is it? It checks the difference in value between imported and exported goods during the reported month.

Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation's exports. Export demand also impacts production and prices at domestic manufacturers.

When? March 24th at 5:45pm Eastern Time.

Trading Tip: If the actual number is higher than the forecast, you can expect the NZD to rise.

 

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What is it? It checks the annualized number of new single-family homes that were sold during the previous month.

It's a leading indicator of economic health because the sale of a new home triggers a wide-reaching ripple effect. For example, furniture and appliances are purchased for the home, a mortgage is sold by the financing bank, and brokers are paid to execute the transaction.

When? March 24th at 10:00am Eastern Time.

Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.

 

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