Markets sentiment improves as North Korea tensions eases, jobs data on tap.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. ADP jobs data ahead
Investors will keep a sharp eye on the August nonfarm employment (NFP) change data released by private payroll processor ADP 12:15 GMT Wednesday.
Forecasts for the ADP report are for the creation of 183,000 private jobs in August in what would be an improvement of 5,000 posts from the previous month’s data.
Though not always a reliable reflection of the government’s official nonfarm payrolls report out on Friday, traders will track the data for indications that the U.S. labor market is maintaining solid growth with an eye on its implications for Federal Reserve policy.
2. North Korea tensions ease
Markets are keeping tensions surrounding North Korea on their radar Wednesday though tensions appeared to have eased somewhat.
North Korean leader Kim Jong-Un called Tuesday's missile test a "meaningful prelude" to containing the U.S. territory of Guam.
In the previous day's trade, markets worldwide were on edge following news that North Korea had fired a ballistic missile which had passed over Japan.
As U.S. President Donald Trump gave a relatively restrained statement, saying simply that “all options remained on the table”, U.S. stocks managed to recover from earlier losses on Tuesday to finish the day in the black.
3. Global stocks bounce back
Global stocks were broadly higher on Wednesday, taking their cue from a positive close in the prior session on Wall Street as concerns over U.S.-North Korea tensions appeared to ease.
In Asia, equities ended Wednesday mostly higher with Japan’s Nikkei 225 up around 0.7%, while South Korea’s Kospi managed gains of about 0.3%. China’s Shanghai Composite was an outlier as it dipped 0.05%.
European bourses were in a clear reversal on Wednesday as concerns over tensions between North Korea and the U.S. began to subside and demand for the riskier assets found fresh support.
U.S. futures also pointed to a slightly higher open Wednesday in a continuation of the prior day’s gains.
4. Oil edges lower
Oil prices traded lower on Wednesday as ongoing disruptions from Tropical Storm Harvey kept refineries from buying crude, weighing on demand but prompting fears over fuel shortages.
Market players also awaited the latest official weekly inventory data out at 14:30 GMT amid expectations for a draw of 1.9 million barrels.
Losses on Wednesday came despite the fact that inventory data from the American Petroleum Institute late in the prior session showed a larger-than-expected drop of 5.78 million barrels.
