Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Optimism on Wednesday
1. Optimism on Wednesday
U.S. stock futures are edging up as European markets all post strong gains in early trading.
Investors seem to be taking a breather after days of selling. And some are feeling a bit more optimistic after new data from France showed consumer prices held steady in May after months of deflation.
The British pound is also rising versus all major global currencies as traders hope that U.K. voters will choose to maintain the status quo at a referendum next week and remain in the European Union. Fears about a British exit from the EU have been slamming markets for weeks.
The yield on Germany's 10-year government bonds have also crossed back into positive territory after falling below 0% on Tuesday for the first time ever.
2. Waiting for the Fed
2. Waiting for the Fed
The Federal Reserve is set to announce its latest decision on interest rates at 2 p.m. ET, but virtually no one expects it to raise rates. The odds of a rate hike right now are around 2%, according to investor expectations.
The Fed has been trying to raise rates this year but has been held back by unease about the U.S. economic recovery and global stability.
Fed chief Janet Yellen will hold a press conference 30 minutes after the announcement that could offer clues on a potential move in July.
3. Oil developments
3. Oil developments
Traders will get an update on the state of U.S. oil inventories at 10:30 a.m.
U.S. oil stockpiles have receded a bit in recent weeks, thanks in part to supply outages in Canada and other parts of the globe.
Oil prices are currently slipping by about 1% to trade around $48 per barrel.
4. China disappointment
4. China disappointment
Chinese stocks aren't ready for the big time, according to index provider MSCI.
MSCI said Wednesday it would not add shares traded in Shanghai and Shenzhen to its widely-tracked global benchmarks because of continued concerns over access to China's markets.
The decision to keep China on the sidelines means the country has yet again failed to win a vote of confidence as an attractive destination for global capital.
If China were added, it could expect an influx of billions of investment dollars into the domestic stock market.
But Chinese markets shrugged off the decision Wednesday. The benchmark Shanghai Composite rose 1.6%, while Shenzhen stocks gained 3.1%. Both markets had suffered steep losses earlier in the week.
