Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. U.S. stocks good momentum resumes
1. U.S. stocks good momentum resumes
U.S. stock futures continue to move higher Tuesday after a broad global market rally on Monday.
However, European markets and Asian markets are struggling to keep pace. Some major European indexes are slipping a tad following stunning gains of 3% or more on Monday.
Investor sentiment continues to be guided by expectations about the outcome of the "Brexit" referendum on Thursday.
British voters will decide whether they want the U.K. to leave the European Union. A vote to exit the bloc would have wide-reaching economic and market implications.
2. ‘Remain’ campaign dominating
2. ‘Remain’ campaign dominating
Two opinion polls released late Monday indicated that support for the 'Remain' campaign had regained its lead over a vote to exit the 28-member bloc, just two days ahead of a highly-anticipated referendum.
An ORB poll for the Daily Telegraph newspaper found support for ‘Remain’ at 53%, up 5% on the previous one, with support for ‘Leave’ on 46%, down 3%.
Social research body NatCen also published a survey that found ‘Remain’ on 53% and ‘Leave’ on 47%.
However, an online poll by YouGov for The Times showed ‘Leave’ ahead on 44%, up 1%, with ‘Remain’ on 42%, down 2%. That survey was conducted over the weekend after the killing of Jo Cox, a Labour Party member and supporter of EU membership.
The pound climbed to 1.4783 against the U.S. dollar, the highest level since January 4. Sterling rallied around three cents on Monday, its biggest one-day gain in nearly eight years, on growing expectations that Britain would opt to remain in the European Union in a referendum later this week.
3. Central bank action
3. Central bank action
The head of the Federal Reserve, Janet Yellen, is set to testify on Tuesday before the U.S. Senate Committee on Banking, Housing and Urban Affairs. The event kicks off at 10 a.m. ET.
Yellen said earlier this month that the Fed held off on raising interest rates because of "headwinds blowing on the economy," including the destabilizing threat of a pro-Brexit vote.
The Fed has kept warning it wants to raise interest rates but has continued to push back those plans after a single rate hike in December.
Also at 10 a.m. ET, Yellen's European counterpart will be making some high-profile statements in Brussels, Belgium. European Central Bank President Mario Draghi will be speaking before the Committee on Economic and Monetary Affairs at the European Parliament.
"In theory this should carry as much weight as Yellen's testimony. In practice it does not," noted UBS senior economist Paul Donovan. "The attention is with Yellen."
4. Oil falls but remains high
4. Oil falls but remains high
Oil prices pushed lower on Tuesday, falling for the first time in three days as market players looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 1.9 million barrels in the week ended June 17.
U.S. crude dipped 30 cents, or 0.6%, to $49.66, during morning hours in New York, while Brent was down 40 cents, or 0.8%, at $50.25 a barrel.
