Daily Video Review - 29/12
- Donald Herison
- English
- MARKETS NEWS
- Hits: 1405
US markets moved higher on Friday reaching records once again. The gain came after markets were closed for the Christmas Holidays.
Asian markets were mixed across the region. The Nikkei lost 0.5% due to reports that a man is being tested for Ebola in Tokyo.
European markets are lower today after a third round of parliamentary elections in Greece failed. Greece now faces elections in January as parliament failed to elect Stavros Dimas as the new President. The parliament will now be dissolved and an election date will be called within 10 days.
Oil climbed due to unrest in Libya. Tanks were set on fire by militants at Libya’s largest oil port destabilizing production. This lowered supply and pushed prices higher. Gains are limited however as supply still remains very high.
Gold climbed strongly on Friday and almost reached $1,200/ounce due to rumours that China will increase monetary stimulus and loosen its lending policy. The metal is now falling back down as the Dollar strengthens. It is likely it could reach its support level as there is not much in the market to give it a boost today.
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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) Futures Flat
US stock futures are little changed early Monday, indicating a lackluster start to the trading session.
This follows gains across major US markets on Friday. The S&P 500 rose 0.3% to close at a fresh record. The Nasdaq jumped by 0.7% and the Dow Jones industrial average inched up 0.1%.
There are no major economic releases slated for Monday.
2) Greek Vote
Investors will be watching a crucial vote to confirm a new president in Greece on Monday. If parliament fails to vote for a new president, this will trigger snap elections that could bring a popular anti-austerity party to power. Syriza has vowed to renegotiate the terms of Greece's bailout package and reverse many of the reforms that have helped the country return to economic growth.
3) International Markets
European markets are mixed in early trading.
Asian markets also closed with mixed results. Japan's Nikkei index finished with a 0.5% loss.
4) AirAsia Shares
AirAsia shares dropped sharply in Malaysia as investors reacted to the disappearance of a passenger jet bound for Singapore with 162 people on board.
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What is it? It checks the change in the total value of new loans issued to consumers and businesses in the private sector.
Borrowing and spending are positively correlated - consumers and businesses tend to seek credit when they are confident in their future financial position and feel comfortable spending money.
When? December 30th at 4:00am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the EUR to rise.
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What is it? It checks the change in the total quantity of domestic currency in circulation and deposited in banks.
It's positively correlated with interest rates - early in the economic cycle an increasing supply of money leads to additional spending and investment, and later in the cycle expanding money supply leads to inflation.
When? December 30th at 4:00am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the EUR to rise.
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What is it? It checks the change in the price of goods and services purchased by consumers.
Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.
When? December 30th at 3:00am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the EUR to rise.
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What is it? It checks the change in the selling price of homes with mortgages backed by Nationwide.
It's a leading indicator of the housing industry's health because rising house prices attract investors and spur industry activity.
When? December 30th at 2:00am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the GBP to rise.
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What is it? Members of Parliament will hold the third round of voting to elect the 9th President of the Hellenic Republic. A total of 180 votes are required to elect the President.
The winner will likely be projected before the official vote count is announced, based on early vote counts and exit polling.
When? December 29th all day long.
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What is it? It checks the level of a composite index based on 5 consumer-based economic indicators.
It’s a combined reading of 5 economic indicators including consumer confidence, consumer spending, tourism, new car sales, and retail activity.
When? December 29th at 2:00am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the CHF to rise.
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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) Futures Firm
US stock futures were pointing to a positive open though a quiet session was expected to close out the shortened trading week.
On Wednesday, the Dow Jones industrial average inched higher to notch its second straight finish above 18,000. The S&P 500 closed relatively flat, and the tech-heavy Nasdaq gained 0.2%.
There are no major earnings due out Friday and no economic updates either.
2) Oil Rebounds
Crude oil ticked up in electronic trading Friday to trade above $56 a barrel. Oil prices have suffered sharp falls this year as a combination of abundant supplies, a strong US dollar and weaker demand from Europe and Asia deterred buyers.
3) Ruble Stabilizes
Russia's battered currency regained some poise Friday following a series of interventions by the government and central bank this week to halt a worsening financial crisis.
4) International Markets Overview
Most markets in Europe and Asia remained closed for holidays. Chinese stocks were the standout in Asia, with the Shangahi Composite rallying 2.8%
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