NFP data was released on Friday and showed that 252,000 people were hired during the past month. This was very positive and was much higher than the expected increase of 240,000. However, average hourly earnings data was also released and disappointed as it showed a decline of 0.2%. The data offset expectations that interest rates could be raised sooner than expected as wage inflation is another important aspect of the market.

US markets declined following the release. Falling oil prices also hit sentiment.

Asian markets were mixed across the region. The Nikkei remained closed for a public holiday known as ‘Adults Day’. The Hang Seng added 0.45% as two components soared on news of reorganization plans.

European markets are mixed today. Oil prices initially boosted markets as companies reported that they will have stronger earnings due to weaker fuel prices. Markets were also boosted by a report from CNBC which stated that quantitative easing could be based on contributions made by central banks. Gains were short lived, however, as oil extended its sell off.

Oil is trading at its lowest price since March 2009. Goldman Sachs cut their 2015 forecast to $47.15 as they believe the market needs to balance itself out.  The Prince of Saudi, Alwaleed, is also reported to have said that oil will never reach $100/barrel if supply and demand remains at the current level. Trader should focus on this week’s supply data as it may dictate the direction of the market.

Gold gained on the back of wage data. As the data made an interest rate hike seems less likely and the stock market declined, the metal was boosted as it offers more lucrative returns. As the Dollar remains strong we could see limited gains, however, so traders should be careful with any long term ‘Call’ positions.

 

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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:


1) Stocks Up, Oil Down

US stock futures are climbing higher, indicating markets could have a positive start to the week. European stock markets are all rising, with the DAX in Germany up by more than 1%.

The broadly positive indications from the stock market contrast with the falling price of oil. Crude futures in the US are trading around $47 per barrel, down 2%.

The price of crude has more than halved over the past few months, piling pressure on the oil industry and many producer nations.


2) Market Movers

Shares in companies owned by Hong Kong tycoon Li Ka-Shing soared Monday after he announced plans to reorganize his massive empire.

A big takeover is also attracting attention Monday.


3) Earnings Season

This week sees the start of earnings season, when a deluge of quarterly reports hit the market. A key company reporting earnings Monday is Alcoa (AA).


4) Golden Moments for Amazon and Netflix

The Golden Globe awards over the weekend were the latest affirmation of the growing role of players such as Amazon (AMZN, Tech30) and Netflix (NFLX, Tech30) in television.

Amazon's comedic television series "Transparent" picked up two Golden Globe awards, beating shows from HBO, Netflix and The CW Network.

Netflix star Kevin Spacey also earned an award for his acting in the show, "House of Cards."

 

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What is it? It checks the difference in value between imported and exported goods during the previous month.

Export demand and currency demand are directly linked because foreigners usually buy the domestic currency to pay for the nation's exports. Export demand also impacts production and prices at domestic manufacturers.

When? January 12th Tentative.

 

 

Trading Tip: If the number is higher than the forecast, you can expect the CNY to rise.

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What is it? It checks the Difference in value between imported and exported goods, services, income flows, and unilateral transfers during the reported month.

It's directly linked to currency demand - a rising surplus indicates that foreigners are buying more of the domestic currency to execute transactions in the country.

When? January 12th at 6:50pm Eastern Time.

 

 

Trading Tip: If the number is higher than the forecast, you can expect the JPY to rise.

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What is it? Lockhard is due to speak at the Rotary Club, in Atlanta. Audience questions expected.

Federal Reserve FOMC members vote on where to set the nation's key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy.

When? January 12th at 12:40am Eastern Time.

 

 

Trading Tip: If the announcement will hint towards higher interest rates, you can expect the USD to rise.

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What is it? It's a leading indicator of economic health - businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment.

When? January 12th at 10:30am Eastern Time.

 

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