Global stock markets are rising, oil prices are up and central banks are making important decisions.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. New strategy by Bank of Japan
1. New strategy by Bank of Japan
The Bank of Japan has taken a new, unexpected approach to monetary policy by introducing a long-term interest rate target of around 0% for 10-year Japanese government bonds.
This is its latest attempt to stimulate the country's stagnating economy and pull Japan out of deflation.
The news gave global stock markets a lift, with U.S. stock futures, European markets and Asian markets all rising. Japan's Nikkei index, in particular, surged 1.9% as the yen dropped.
But some analysts were underwhelmed.
"If you take the time to read through these measures, then the impression is of a central bank that has largely lost the monetary plot and is undertaking an ever more complicated and convoluted approach to monetary policy," said Simon Smith, chief economist at FxPro in London.
2. Fed to act soon
2. Fed to act soon
All eyes will be on the Federal Reserve's interest rate decision at 19:00GMT, followed by Janet Yellen's press conference 30 minutes later.
The Federal Reserve has held off on raising interest rates for months in an effort to ensure the U.S. economy is on a solid footing. It raised rates in December 2015 and hasn't made a move since then.
Wall Street sees a very low chance of another hike today, putting the odds of a rate increase at just 12%, according to CME Group.
3. Market movers
3. Market movers
Adobe (ADBE) stock is surging in extended trading after the company issued an earnings report that beat analysts' expectations.
It's the same story for FedEx (FDX), which also reported quarterly results on Tuesday after the close.
And crude oil futures are rising by 2% to trade around $45 per barrel, which could be supporting the wider market.
However, oil prices could be volatile today as the U.S. Energy Information Administration reports weekly crude oil inventory data at 10:30 a.m. Traders react quickly when the data shows an unexpected rise or fall in inventories.
4. GBP slips lower against the Dollar
4. GBP slips lower against the Dollar
The GBP slipped to a fresh 1-month low against the U.S. dollar on Wednesday, despite the release of upbeat U.K. data as investors remained cautious ahead of the Federal Reserve’s policy decision due later in the day.
