Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:

World markets are falling again. Prepare for another bumpy ride.

Chinese stocks bounced around Wednesday before ending weaker for the fifth day running. Stock futures are signaling that U.S. markets should open with a gain of about one percent, but Europe is firmly in the red.

 

1) China drops again

 

China announced a new round of measures designed to boost the economy late Tuesday, cutting interest rates and allowing banks to lend more. But the bold move failed to prevent further losses. Shanghai Composite closed 1.3% down Wednesday, while the Shenzen Composite lost 3%.

The central bank also said after the market close that it would lend commercial banks about $22 billion to boost liquidity in the short term in its first such move since February. 


2) Stock market movers

Harley-Davidson, Apple, Bank of America: Harley-Davidson (HOG) was one of the biggest gainers in after-hours trading, adding 3%. Transocean (RIG) wasn't so lucky. Its stock price tumbled more than 10%. PNC Financial (PNC) also dipped more than 5%.

A handful of stocks are gaining in premarket trading. Netflix (NFLX, Tech30) is up 3.6% and Bank of America (BAC) gained 2% early on Wednesday.

Apple (AAPL, Tech30), one of the most heavily traded stocks during this week's gut-churning turmoil, is up 2% premarket. 


3) Earnings and economics

Earnings reports from Abercrombie & Fitch (ANF), Express (EXPR) and Frontline (FRO) are expected ahead of the opening bell.

After the market closes, another crop of companies including Williams-Sonoma (WSM) and Guess (GES) will report.

A report from the U.S. government on orders placed with U.S. manufacturers is expected at 8:30 a.m. ET. Analysts look to that report to gauge private sector activity and business spending.

More gloomy data came from the World Trade Monitor, which reported the biggest fall in trade in the first half of the year since the global financial crisis. 


4) International markets overview

 

European markets are down again in early trading.

The FTSE 100 in London tumbled 1.5% after the opening bell, while Germany's DAX lost 1.3%, and continues to flirt with bear market territory. Several world markets are now trading more than 20% below their most recent peak.

Asian markets ended the session mixed. China and Hong Kong closed lower, while Japan's Nikkei gained 3.2% and Korea's Kospi 2.6%.

  

 

 

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What is it? 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? At 9:30pm Eastern Time.

Trading Tip: If the actual number is higher than the forecast, you can expect the AUD to rise.

 

 

 

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What is it? Federal Reserve FOMC members vote on where to set the nation's key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy.

When? At 10:00am Eastern Time.

Trading Tip: If the announcement will hint towards higher interest rates, you can expect the USD to rise.

 

 

 

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What is it? It's a leading indicator of production - rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.

When? At 8:30am Eastern Time.

Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.

 

 

 

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1. U.S. stocks rebounded sharply on Tuesday as investors sought out bargains a day after Wall Street turned in its worst performance in four years.

Markets also got a shot of good news with China's second interest rate cut in two months, but analysts stopped short of declaring that the worst was over.

2. WASHINGTON - New U.S. single-family home sales rose a bit less than expected in July, but the trend pointed to housing market strength that should underpin economic growth for the rest of the year.

The Commerce Department said on Tuesday sales increased 5.4 percent to a seasonally adjusted annual rate of 507,000 units.

3. NEW YORK - U.S. consumer confidence rebounded in August according to a private sector report released on Tuesday.

The Conference Board, an industry group, said its index of consumer attitudes jumped to 101.5, much higher than the expectation of 93.4 according to a Reuters poll.

The July reading was revised to 91.0 from 90.9.

4. NEW YORK - Stocks, oil prices and safe-haven bond yields rose on Tuesday as a tentative market rebound picked up pace after China cut interest rates and banks' reserve requirements to kick-start its wavering economy. (Reuters).

5. Gold prices tumbled sharply on Tuesday, after data showed that U .S. consumer confidence improved to a seven-month peak in August, boosting optimism over the health of the economy and supporting the case for an interest rate hike this year.

 

 

 

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It may be safe to wade back into stocks Tuesday with one note of caution: China is still in deep turmoil.

Global markets are rebounding broadly after investors suffered one of their worst sessions in years on Monday.

U.S. stock futures were rising nearly 3% and Europe climbed, though China stocks extended a horror run.

Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:

 

1) China tumbles

 

Stocks in China continued their downward spiral Tuesday, extending a selloff that panicked investors around the world. The Shanghai Composite plunged 7.6%, while the smaller Shenzhen Composite slumped 7.2%.

Uncertainty over the stock market and the Chinese economy has driven sharp selling, and many analysts expect more intervention from the government to bolster growth.

But China's pain was largely contained Tuesday. Of the other major Asian markets, only Japan slumped again with the Nikkei tumbling nearly 4%.

Markets in Korea and Australia -- which is particularly sensitive to worries about Chinese growth -- finished with solid gains. 


2) Oil rebounds

Oil prices also found a firmer footing, putting on 2% to just above $39 a barrel. Demand has been slugged in recent months by oversupply of crude and worries about the outlook for the global economy.

Still, a shadow hangs over commodity markets. Industrial metals were under pressure, signaling concern over big buyer China and the health of the world economy. Copper gave up 3% and nickel tumbled 8% in London trading. 


3) Europe recovers

European markets are climbing in early trading, with Germany's DAX adding 2.6% and the U.K. FTSE index rising 2.4%. Solid second quarter GDP numbers for Germany, and an upbeat reading of business sentiment in Europe's biggest economy, were helping. 


4) Monday market recap

 

It was dramatic session for U.S. stocks -- beginning with an unprecedented 1,000-point drop for the Dow -- driven by deep fears about China's economic slowdown. The Dow Jones industrial average closed down 3.6%, while the S&P 500 lost nearly 4%, and the Nasdaq gave up 3.8%. All three indexes are now experiencing a correction.

 

 

 

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What is it? Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation's exports. Export demand also impacts production and prices at domestic manufacturers.

When? At 6:45pm Eastern Time.

Trading Tip: If the actual number is higher than the forecast, you can expect the NZD to rise.

 

 

 

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What is it? Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity.

When? At 10:00am Eastern Time.

Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.

  

 

 

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