Daily Market Review - 05/11
- Donald Herison
- English
- MARKETS NEWS
- Hits: 1633
US markets finished mixed as falling oil prices continued to affect energy shares. Sentiment was also lower after the European Commission cut their forecast for global growth to 0.8%, down from 1.2%.
Asian markets finished mixed. The Nikkei continued to climb, adding another 0.44% as the Yen weakened further against the Dollar.
European markets are higher today, rebounding from yesterday’s losses. Gains follow positive earnings releases from companies such a Marks and Spencers.
Oil fell to its lowest price since October 2011. The drop came after Saudi Arabia cut its prices for exports to the U.S by $0.45/barrel. The decision came after exports from the country dropped to a 4 year low. The market seems to be over supplied and demand is on the downside and the stronger Dollar is also impacting prices.
Gold has tumbled to a 4 year low. The Dollar is climbing even higher ahead of midterm elections. Speculation is also high that the Federal Reserve could raise interest rates sooner than expected.
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Here are 5 tips for today's trading. This will help you decide where you should invest and what to look for:
1) Midterm Election Results
CNN projections show Republicans won the balance of power in both the Senate and the House.
This gives the GOP control of Congress and the power to pin down President Obama during his last two years in office. Many investors expect that the Republican takeover of the Senate will lead to more pro-business policies, and benefit the energy and financial sectors.
US stock futures were pushing higher before the open.
2) Economics
On the economics side, the ADP national employment report for October will be published at 8:15am ET. This comes just ahead of Friday's highly anticipated monthly jobs report from the US government.
3) European Market Movers
European markets were all rising in early trading.
A stand-out performer was British grocery chain Marks and Spencer (MAKSY). The company reported better than expected earnings and shares shot up by 8%.
4) Asian Market Movers
Shares in Japan's Softbank (SFTBF) declined by 2.3% after the telecom company slashed its earnings expectations for the year.
Shares in Japanese automaker Nissan (NSANY) got a 2% boost after it reported better than expected quarterly results. The weaker yen has helped, making it cheaper for foreigners to buy its cars.
Meanwhile, Asian markets ended with mixed results, though the moves were not particularly dramatic.
5) Tuesday Market Recap
US stocks closed mixed Tuesday. The Dow Jones industrial average posted a gain of nearly 18 points, while both the S&P 500 and Nasdaq slid about 0.3%.
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What is it? It checks the percentage of the total work force that is unemployed and actively seeking employment during the previous month.
Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions.
When? November 5th at 7:30pm Eastern Time.
Trading Tip: If the number is lower than the forecast, you can expect the AUD to rise.
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