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. dollar on recovery mode
1. U.S. dollar on recovery mode
The U.S. dollar inched higher on Monday, pulling away from a five-week low it hit on Friday following the release of disappointing U.S. growth figures.
The dollar index, which tracks the greenback against a basket of six peers, was up 0.15% at 95.67 in early trade on Monday, crawling away from its Friday low of 95.34, a level not seen since June 24.
New York Fed President William Dudley said at an international central bankers conference in Bali on Monday that investors are underestimating how many times policy makers in the world’s largest economy will raise interest rates.
He added that the Fed could hike rates before the November U.S. election if the economy and labor market improve quickly.
2. Mixed markets
2. Mixed markets
U.S. investors are in a good mood at the start of the month. U.S. stock futures are pointing up.
European markets are getting dragged down, however, by losses in the banking sector.
"Stress tests" of the top 51 European banks published late Friday showed that they were generally in better condition than expected and could weather another sharp economic downturn. But investors were unhappy with the results for Spanish banks, and they hit the sell button.
Meanwhile, a struggling Italian bank that essentially failed the test announced a rescue plan, saying it was raising 5 billion euros ($5.6 billion) and splitting off its bad loans into a separate entity. Shares in that bank are now up 3%.
Asian markets ended the day with mixed results.
3. U.K. post-Brexit manufacturing hit 3-year low
3. U.K. post-Brexit manufacturing hit 3-year low
The U.K. manufacturing sector shrank at its fastest pace in more than three years in July, with the new orders index showing its biggest monthly drop in 18 years, another sign that the Brexit vote on 23 June is hitting the country’s economic growth.
The Markit manufacturing purchasing managers index came in at 48.2, down from an initial reading of 49.1 and compared to 52.4 in June.
The disappointing result will put more pressure on the Bank of England to live up to expectations and cut interest rates on Thursday.
4. Weekly market recap
4. Weekly market recap
It was a good week for the Nasdaq but a bad week for the Dow.
The Dow Jones industrial average dipped every single day last week and closed with a 0.8% loss. The Nasdaq rose for four consecutive trading days and finished the week 1.2% higher.
The S&P 500 had a mixed week and closed with a 0.1%
