Dollar is steady, Nasdaq is getting ready for another all-time high record.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Dollar rebounds after heavy losses
The dollar is recovering on Wednesday after a steep selloff sparked by fears that U.S. President Donald Trump is having difficulties implementing his policy agenda.
The index touched a low of 94.27 on Tuesday, the lowest trough since August 26, 2016 after Republican lawmakers pulled the plug on the latest version of a contentious bill to replace Obamacare, delivering a major policy blow to the Trump administration.
Wednesday’s rebound came ahead of housing starts and building permits for June that are set to be released at 12:30 GMT.
2. Oil looks for direction ahead of U.S. data
Oil was bouncing between gains and losses in early morning North American trade on Wednesday as investors looked ahead to official data on U.S. inventories and experts underlined the erratic movements in crude based on the slightest news.
Late Tuesday, the American Petroleum Institute said that U.S. oil inventories rose by 1.6 million barrels, compared to expectations for a draw of 3.5 million barrels.
The U.S. Energy Information Administration will release its official weekly oil supplies report at 14:30 GMT Wednesday, amid expectations for a draw of 3.2 million barrels.
3. ECB and BoJ in focus
Investors in currency markets were adjusting positions ahead of policy announcements scheduled for Thursday from both the European Central Bank (ECB) and the Bank of Japan (BoJ).
In what seemed like an odd move, ECB policymaker Francois Villeroy de Galhau broke the central bank’s quiet period and insisted Wednesday that accommodative policy was still necessary.
Markets are not expecting the euro area monetary to make any changes but are concentrating on any hints from ECB president Mario Draghi that the time for a reduction of asset purchases in drawing near.
The BoJ is widely expected to be a non-event based on market expectations that the Asian monetary authority will lag behind other central banks in scaling back its massive monetary stimulus program.
4. Global stocks rise, more earnings ahead
A weak U.S. dollar combined with upbeat Chinese data to lift emerging market and Asian shares to levels not seen in more than two years and global stocks to an all-time high on Wednesday.
U.S. tech shares looked ready to break new record highs, all as investors kept an eye on earnings.
European shares traded mostly higher Wednesday as market players delved through earnings reports and looked ahead to the ECB announcement and press conference.
Earlier, Asian closed higher with China’s Shanghai Composite leading gains, while Japan’s Nikkei 225 remained subdued ahead of the BoJ policy decision.
Investors would see a bit of a lull in the second quarter reporting season Wednesday after the prior session’s deluge with Morgan Stanley set to be the main focus on the market radar.
The broker follows up on a disappointing report from Goldman Sach and plans to release its own numbers at approximately 11:00 GMT. The earnings season is still the beginning stages with only 47 of the S&P 500 firms having reported.
The Earnings Scout pointed out that 77% of those companies have beat profit estimates but that the growth rate of 13.5% had slowed from 14.9% in the first quarter for the exact same firms.
IBM was showing losses of nearly 3% in pre-market trade on Wednesday after the computer giant reported its 21st straight decline in revenues. After the market close Wednesday, investors will focus on reports from American Express and Qualcomm.
