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


1) India Cuts Rates Again

The Reserve Bank of India unexpectedly cut key lending rates yet again on Wednesday, just days after the government unveiled a new budget.

The central bank was not scheduled to issue a rate decision, and the move took economists and analysts by surprise.

"India has jumped on the bandwagon and joined 19 other central banks in deciding to cut interest rates," said IG market analyst Alastair McCaig. "The clamor for central bankers to stimulate markets through cuts leaves the U.S....looking increasingly isolated."

Stocks in Mumbai jumped after the decision, before moving back down.


2) Watching the Fed

The U.S. Federal Reserve may also cause waves Wednesday when it publishes its Beige Book at 2 p.m. ET. The publication offers anecdotal information on the state of the economy.

Paul Donovan, senior global economist at UBS, said the details about how oil prices are influencing inflation will be of particular interest.

Some are also expecting analysis of the effect of the West Coast port shutdown.


3) Stocks Dip

U.S. stock futures are edging lower, alongside most European markets.

Asian stock markets mostly ended the day with losses.

On Tuesday, the Dow Jones industrial average lost 85 points, while the S&P 500 slid 0.5% and the Nasdaq fell 0.6%.

The slide comes after the Dow and S&P 500 hit all-time highs on Monday. The Nasdaq also closed on Monday at a 15-year high.


4) Earnings Updates

Abercrombie and Fitch (ANF), American Eagle (AEO), PetSmart (PETM) and the maker of Jack Daniel's whiskey, Brown-Forman (BFA), will report ahead of the open.

H&R Block (HRB) is among the main companies reporting after the close.

Shares in Standard Chartered (SCBFF) are jumping by about 4% in London after the British bank reported full-year results.

The bank reported a sharp drop in profits, but investors bid shares higher as they were relieved the bank didn't announce plans to raise more capital.

The bank recently announced it was bringing in a new CEO.

 

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What is it? It checks the difference in value between imported and exported goods and services during the reported month.

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? March 4th at 7:30am 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? It checks the change in the total value of sales at the retail level.

It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity.

When? March 4th at 7:30am 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? It checks the level of a diffusion index based on surveyed purchasing managers, excluding the manufacturing industry.

It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.

When? March 4th 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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What is it? It checks the interest rate at which major financial institutions borrow and lend overnight funds between themselves.

Short term interest rates are the paramount factor in currency valuation - traders look at most other indicators merely to predict how rates will change in the future.

When? March 4th at 10:00am Eastern Time.

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

 

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What is it? It's the primary tool the BOC uses to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it discusses the economic outlook and offers clues on the outcome of future decisions.

When? March 4th at 10:00am Eastern Time.

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

 

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What is it? It checks the estimated change in the number of employed people during the previous month, excluding the farming industry and government.

Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.

When? March 4th at 8:15am Eastern Time.

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

 

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During today’s early trading session, Asian stocks edged lower as investors made gains from recent profits. Following the RBA announcement that they are to maintain the current interest rate, the AUD jumped 0.88% against the Dollar, market spectators had expected the rate to be brought down from 2.25% to 2%, furthermore, other positive reports showed that the Australian Building Approvals and Current accounts showed better than expected data. Tomorrow morning Australia will release the fourth quarterly and yearly Gross Domestic Product figures.

During the European session, the Euro traded lower despite positive data showing that the German Retail sales during the month of January had increased significantly to 2.9%. Traders are cautious before Thursday’s European Central Bank Press conference and the Interest rate decision. It is expected that ECB officials will announce the plans of its quantitative easing program and a detailed outlook of the economy and inflation. Implementing further stimulus could weaken the Euro against a basket of major currencies over the long term.

During early U.S. trade, the Dollar dropped sharply against the CAD following the release of strong data from Canada. 

 

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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) Slipping from all-time Highs?

US stock futures are slipping lower, indicating markets could see a modest retreat at the open.


2) International Markets Overview

European markets seemed to be tracking U.S. gains into Tuesday. All major indexes were edging higher.

Asian markets mostly closed with losses. The typically volatile Shanghai Composite was the biggest loser for the day. It fell by 2.2%.


3) Earnings

Best Buy (BBY), Dick's Sporting Goods (DKS), and Kate Spade (KATE) are reporting ahead of the open.

In London, shares in Barclays (BCS) and Glencore (GLNCY) are both declining by about 2% after the firms reported annual results.


4) Aussie Dollar Surges

The Australian currency got a big boost Tuesday after the country's central bank unexpectedly held its key rate at 2.25%.

A wide range of countries around the world have been cutting interest rates over the past few months, which has pushed their currencies lower.

China joined the fray and cut rates over the weekend as concerns about low inflation intensified.

 

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