U.S. stock markets look set to hit another new record highs Monday.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Gold slumps amid Fed rate hike bets
1. Gold slumps amid Fed rate hike bets
Gold prices plunged to a one-week low on Monday, amid new expectations of a U.S. interest rate hike by the end of this year.
The positive read on the U.S. economy from Friday’s jobs report reignited speculation that the Federal Reserve will lift interest rates this year.
Fed funds futures are currently pricing in a 15% chance of a rate hike by September. December odds were at around 44%, up from 33% ahead of the report.
The USD surged to a the one-week high of 96.50 in wake of the jobs report on Friday. It was at 96.27 early Monday.
A stronger USD usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
2. Stock market overview
2. Stock market overview
The main U.S. indexes are within spitting distance of all-time highs and it looks like they could break new ground. U.S. stock futures are rising.
The S&P 500 closed at its highest level ever on Friday following the better-than-expected jobs report.
The Dow Jones industrial average is less than 100 points away from the record high it set in July. And the Nasdaq could break through to its highest level ever - surpassing a record set in July 2015.
International stock markets are also jumping. All European markets are rising in early trading, while Asian markets are closing out the day with positive results.
3. China data disappoints
3. China data disappoints
China's exports and imports fell more than expected in July in a rocky start to the third quarter, pointing to further weakness in global demand.
China said trade balance for July came in at a surplus of $52.31 billion, better than $47.6 billion expected, with exports down 4.4%, below the 3.0% fall forecast and imports showing a 12.5% decline, far worse than the expected drop of 7.0% seen.
Despite the worse-than-expected data, Chinese stocks held onto gains with experts suggesting that the data could force the Asian giant’s government and central bank to embark on more easing.
4. Oil prices jumps 1%
4. Oil prices jumps 1%
Oil prices rallied on Monday, as renewed hopes for an agreement among exporters to freeze output underpinned the market, although a persistent global oversupply kept gains in check.
Several OPEC members want to revive the idea of setting new limits on oil production this fall in an effort to stabilize the market, according to people familiar with the matter.
However, Russian Energy Minister Alexander Novak said earlier that he sees no grounds for new talks on freezing production yet, but is open to negotiations.
U.S. crude oil futures surged 1.36% to $42.37 at 8:56AM GMT, while Brent oil jumped 1.15% to $44.78.
