Daily Video Review - 25/02
- Donald Herison
- English
- MARKETS NEWS
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During today’s early trading session, the Nikkei retreated from its 15 year high as investors made gains off increased share prices, however, losses were limited as China released positive data showing that the HSBC Manufacturing PMI was better than expected .
During the European session, the Euro is trading cautiously against the Dollar despite Greece’s approved 4 month debt bailout extension. The European Central bank stated that Athens resolution to the debt plan are not detailed enough to secure future bailout agreements. European stocks are slightly down, but remain supported with low trade volume after the approval of the Greece’s debt deal.
During early U.S. trade, the Dollar continues to trade lower against a basket of major currencies following Janet Yellen’s testimony. Yellen stated that an interest rate hike may be delayed until after “the next couple of FOMC meetings”, investors had expected a rate hike in mid 2015. The second part of the testimony is currently going on, and so we may see higher volatility in the markets as Yellen continues to testify.
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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 Sitting at Record Levels
US stock futures are kicking around the record levels set Tuesday. European markets are mixed in early trading, while Asian markets saw few major moves.
The main index in Shanghai slipped 0.6%, despite a slightly better than expected early reading of Chinese manufacturing activity. Investors continue to worry about prospects for the world's second largest economy.
"Despite today's better-than-expected [manufacturing] reading, economic momentum remains subdued," explained Julian Evans-Pritchard, a China economist at Capital Economics.
2) Keeping an Eye on the Fed
Federal Reserve chair Janet Yellen will continue to testify before Congress. This time she's speaking in front of the House. She gave a mostly upbeat report about the economy to the Senate on Tuesday, which gave markets a boost.
3) HSBC in the Spotlight
Watch trading in HSBC (HSBC) as the banking giant's chairman and CEO are both expected to speak before members of the U.K. parliament about the company's latest Swiss tax scandal.
A report was published this month saying the bank concealed $100 billion in Swiss accounts and helped clients avoid paying taxes.
Swiss authorities responded by launching a criminal investigation into alleged "aggravated money laundering" at the bank.
4) Earnings and Economics
Campbell Soup (CPB), SodaStream (SODA), and Target (TGT) are among the companies reporting earnings before the opening bell.
Salesforce.com (CRM, Tech30) and L Brands (LB), which owns Victoria's Secret and Bath & Body Works, will report after the close.
On the economic front, the US Census Bureau will report data on January sales of new homes at 10am ET.
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What is it? It checks the change in the total inflation-adjusted value of new capital expenditures made by private businesses.
It's a leading indicator of economic health - businesses are quickly affected by market conditions, and changes in their investment levels can be an early signal of future economic activity such as hiring, spending, and earnings.
When? February 25th at 7:30pm Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the AUD to rise.
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