A second day of weak German data sent European markets into retreat on Tuesday with stocks.

A day after German industrial orders saw their biggest monthly drop since the height of the global financial crisis in 2009, its industrial output figures for August dropped by 4%, also the biggest fall in five years.

"Industrial production is currently going through a weak phase... but the current decline is exacerbated by holiday effects," Germany's Economy Ministry said in a statement.

"All in all, one should expect weak production for the third quarter as a whole."

 

Trading Tip: If this goes on, the European markets might continue to drop. Pay notice to the situation in Germany to expect what will happen.

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US Stocks Ended Low on Monday

Manufacturing Production (GBP) - 7/10

 

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US stocks on Monday finished a bit lower as investor caution affected the market. The reason might be Wednesday's unofficial kickoff of third-quarter company earnings reports.

Investors are nervous about the upcoming earnings reports because of fears that the dollar's big rise has hit US profits.

People are going to be anxious to see how the few first major reports indicate the rest of the season, especially among the multi-nationals, because of the strong dollar.

 

Trading Tip: The dollar will affect a lot of the US stocks. Follow it in the next few days to predict how the economy will react.

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Manufacturing Production (GBP) - 7/10

BOJ Press Conference (JPY) - 7/10

Monetary Policy Statement (JPY) - 7/10

 

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The huge company, Hewlett-Packard, plans to separate its personal-computer and printer businesses from its corporate hardware and services operations. It’s the latest attempt by the technology company to improve its fortunes.

According to rumors, the company intends to announce the move on Monday. It is expected to make the split through a tax-free distribution of shares to stockholders next year.

If the division goes off as planned, it would give rise to two publicly traded companies, each with more than $50 billion in annual revenue.

 

Trading Tip: The announcement can greatly affect the HP share, make sure to make your trade before.

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Cash Rate (AUD) - 6/10

Gold's Downfall

US Dollar is Doing Great

 

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Since mid-July gold has been collapsing. The price of gold fell over 11.5% and is now trading under $1200.

The gold is always affected by the US Dollar. Whenever the dollar raises, the gold drops and the other way around. In the chart below you can see how strong the dollar is doing (the blue line) and how is affects the gold (the red line).

 

Trading Tip: The big question is how far Gold will continue to be sold. Keep in mind it is long term view so patience is required. Watch closely for the gold price as it may rise after such a big fall.

 

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US Dollar is Doing Great

Ivey PMI - 6/10

Unemployment Down - Stocks Up

 

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The US Dollar is at a 4 year high against most currencies, which suggest that the US economy is very strong at the moment.

Asian shares are doing well, with the Nikkei rising 1.3%, as a result of the protests calming down lately.

European markets were expected to rise but it’s still unsure whether that will happen.

 

Trading Tip: The USD is doing very well lately, so keep an eye for any big news to affect it.

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Ivey PMI - 6/10

Unemployment Down - Stocks Up

Unemployment Rate (USD) - 3/10

 

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A report on Friday showed that the unemployment rates in the US dropped, which means good news for everyone: more people with paychecks, more spending and higher corporate profits.

All major stock indexes rose sharply. The biggest rise was the Dow Jones industrial average, which closed 208 points higher. The rise started from the opening of the markets and affected nearly every kind of stock, small and large, and in almost every industry.

The good news pushed up the value of the dollar against other major currencies to the highest level in more than four years.

This however also affected the Gold, which fell as investors didn’t want to invest in traditional safe assets.

 

Trading Tip: Gold traders should be aware of the recent drop and take advantage of the situation.

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Unemployment Rate (USD) - 3/10

Trade Balance (USD) - 3/10

Asian Stock Doing Better

 

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