U.S. stock futures are taking a step back after all the main indexes surged by 1.3% on Tuesday. European stock markets are also dipping lower.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Dollar stops after 6-day rally
1. Dollar stops after 6-day rally
The U.S. dollar eased against a basket of currencies after six straight days of gains on Wednesday, falling to 93.99 after climbing to 94.33 a day earlier, which was the most since April 28.
The greenback fell back below the 109-level against the yen as investors locked in gains following its steep rise after continued comments about possible intervention by the Japanese government.
2. Gold prices back at $1,270
2. Gold prices back at $1,270
Gold futures rallied nearly $10, or 1%, to $1,276.10 a troy ounce on Wednesday, after falling to the lowest level in almost two weeks overnight, as weakness in the U.S. dollar boosted the appeal of the precious metal.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
3. Market movers
3. Market movers
Disney, Fossil, Electronic Arts: Shares in Disney (DIS) could slump at the open after the company reported second quarter results that missed expectations. The firm's cable networks, parks and resorts dragged down earnings.
Fossil Group (FOSL) shares are set to crash when trading commences Wednesday after the company reported disappointing earnings and noted that the strong U.S. dollar was hurting sales.
Shares in the video games developer Electronic Arts (EA, Tech30) look set to rise after the company reported better-than-expected earnings.
4. Earnings and economics
4. Earnings and economics
There are a few earnings and economic updates investors will be watching Wednesday.
Wendy's (WEN) and Macy's (M) are among the main companies releasing quarterly results before the open.
The weekly crude oil inventory report from the U.S. Energy Information Administration is set to be released at 10:30 a.m. ET.
Then Weibo (WB), a Twitter-like service in China, is among the key firms reporting after the close, alongside its parent company Sina (SINA).
Toyota (TM), the world's biggest automaker, is forecasting an $8.6 billion hit to its profits because of the strengthening Japanese yen.
Toyota it expects operating profit to tumble 40% in the current financial year. The news came after Japan's markets closed.
