Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Market overview
1. Market overview
U.S. stock futures are red territory following a sharp market surge on Monday.
Traders are taking their cue from the oil market, where crude futures are dipping by about 2%. Stock market moves have been heavily correlated with oil prices over the past few months.
Most European markets are in the red in early trading, though the losses are relatively muted.
Germany's DAX is suffering more than most after the Ifo business sentiment index in Europe's biggest economy fell to its lowest level in over a year. The majority of companies are pessimistic about their business outlook for the first time in six months.
In Asia, most key stock markets ended with small losses.
2. Pound, euro extend declines
2. Pound, euro extend declines
The British pound remained vulnerable, one day after falling nearly 2%, its biggest one-day drop in nearly six years, on worries Britain may leave the European Union.
Meanwhile, the euro slumped to three-week lows after data showed that German business confidence deteriorated to a 14-month low in February, amid concerns over slowing global growth.
3. Economics and recap
3. Economics and recap
A number of important economic reports will be coming out Tuesday.
The latest monthly Case-Shiller housing index will come out at 9 a.m., giving Wall Street an overview about the health of the U.S. housing market at the end of 2015. Further January home sales data will be released at 10 a.m. by the U.S. National Association of Realtors.
Also at 10 a.m., the U.S. Conference Board will release its February consumer confidence data.
Monday was a strong day on Wall Street. The Dow Jones industrial average jumped 1.4%, the S&P 500 rose 1.2% and the Nasdaq rallied by 1.1%.
4. U.S. data, Fed speakers in focus
4. U.S. data, Fed speakers in focus
Market players looked ahead to key U.S. economic data later in the day to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016. The Conference Board will publish data on February consumer confidence at 15:00GMT, or 10:00AM ET, while January existing home sales is due at the same time.
Traders are also awaiting comments from a range of Federal Reserve officials on Tuesday for further indications on the path of future rate hikes. Minneapolis Fed President Neel Kashkari, Fed Vice Chair Stanley Fischer and Dallas Fed President Rob Kaplan are all scheduled to speak throughout the day.
Saudi Arabia's oil minister Ali al-Naimi will be making a speech in Houston on Tuesday morning. Saudi Arabia is the world's biggest oil exporter, and agreed last week with Russia to freeze output at January levels, provided other major producers do the same.
Nobody else has signed up yet, and traders will be monitoring his speech, which is due to start at 8:50 a.m. ET.
