Markets are showing mixed movements on Wednesday.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. GBP under pressure
The British Pound dropped against the USD on Wednesday, re-approaching a 1-month low amid mounting political uncertainty in the U.K.
The GBP dropped on Wednesday after a new poll found that British Prime Minister Theresa May's Conservative Party risks falling short of an overall majority in the June 8 national election.
New constituency-by-constituency modeling by YouGov showed the Conservative Party might lose 20 of the 330 seats it holds while the opposition Labour Party could gain nearly 30 seats, The Times said.
The news came after a string of opinion polls show a narrowing lead for May's Conservatives, shaking the confidence among investors that she would easily win a majority in the election.
2. Positive data from China, Eurozone
China's industrial engine cranked up again in May, reassuring investors worried about slowing growth in the world's second-biggest economy as it grappled with debt risks and tried to shake off a stinging ratings downgrade from Moody's Investors Service.
Moody's sees an improving global outlook even as it warned of a slowdown in China later in the year as liquidity-tightening measures take effect.
China's official Purchasing Managers' Index (PMI) for the manufacturing and services sectors eased worries about a sudden slowdown after a run of weak readings of April data. The manufacturing PMI was at 51.2 in May, beating forecasts of 51.0.
The unemployment rate for the euro zone ticked down to 9.3% in April, from 9.4% in March 2017 and down from 10.2% in April 2016. That was its lowest level since March 2009.
Germany, the euro area’s largest economy, also saw its jobless rate hit an all-time low of 5.7% in May, according to data also released on Wednesday.
3. Global stocks mixed
European stocks were mostly higher on Wednesday, after the release of upbeat Chinese data lifted market sentiment, although U.K. political jitters ahead of the June 8 election were expected to limit upside.
Earlier, Asian shares closed mixed on Wednesday even as China re-opened after a two-day break and brought along some upbeat economic news. China's Shanghai Composite gained 0.2%, while Japan's Nikkei ended 0.2% lower.
Meanwhile, U.S. stock futures pointed to flat open with mixed signs on Wednesday in what was expected to be a quiet day of trading with only April pending home sales on the docket.. At 9:54 GMT, the blue-chip Dow futures slipped 0.01%, S&P 500 futures inched up 0.03% and the Nasdaq 100 futures gained 0.14%.
4. Oil drops 1% before inventory data
Oil prices fell more than 1% on Wednesday, as rising output from Libya added to concerns about increasing U.S. production that is undermining OPEC-led production cuts aimed at tightening the market.
Investors also looked ahead to stockpile data from the American Petroleum Institute out later in the session. The report is released one day later than usual due to the Memorial Day holiday on Monday.
Official crude inventories from the Energy Information Administration will also be published one day later than usual on Thursday.
U.S. crude oil futures slumped 1.59% to $48.87 at 09:53 GMT, while Brent oil sank 1.65% to $51.38.
