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


 1) Oil Slides

The price of crude oil is off by nearly 2% and trading below $63 per barrel. Oil prices have fallen by nearly 40% since June, which has created a lot of uncertainty as investors try to guess when the price will bottom out.

Falling oil prices have wreaked havoc on the oil industry, but given a boost to travel companies and changed the business landscape for many other sectors.


2) Up or Down?

US stock futures were not making any big moves ahead of the open after staging a massive drop and a subsequent comeback on Tuesday.

The Dow Jones industrial average fell by 222 points before recovering to close with a 51 point loss on Tuesday. The S&P 500 landed barely in the red, and the Nasdaq rose about 0.5%.


3) International Markets Mixed

European markets are mostly rising in early trading, but Greek stocks were edging lower. Furious selling sent the market in Athens down nearly 13% on Tuesday as new elections rekindled worries about a possible default.

Asian markets ended with mixed results. The Shanghai Composite rebounded about 3% after suffering heavy falls Tuesday. The benchmark Nikkei index in Japan slid by 2.3% as data showed a drop in consumer confidence.


4) Earnings Updates

Costco (COST), Lands' End (LE) and Vera Bradley (VRA) will report earnings before the opening bell.

Men's Wearhouse is among the companies reporting after the close.

 

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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? December 10th 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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What is it? It checks the change in the number of employed people during the previous month.

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

When? December 10th at 7:30pm Eastern Time.

 

 

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

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What is it? Governor Wheeler is due to testify before the Finance and Expenditure Select Committee, in Wellington.

As head of the central bank, which controls short term interest rates, he has more influence over the nation's currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.

When? December 10th at 7:10pm Eastern Time.

 

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

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What is it? It's among the primary tools the RBNZ 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? December 10th at 3:00pm Eastern Time.

 

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

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What is it? It's among the primary tools the RBNZ uses to communicate with investors about monetary policy. It covers in detail the factors that affected the most recent interest rate decision, such as the overall economic outlook and inflation. Most importantly, it provides clues regarding future monetary policy.

When? December 10th at 3:00pm Eastern Time.

 

 

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

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What is it? It checks the interest rate at which banks lend balances held at the RBNZ to other banks overnight.

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? December 10th at 3:00pm Eastern Time.

 

 

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

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US markets declined with the S&P 500 experiencing its biggest decline in 7 weeks. Losses were led by energy companies which dropped as oil prices continued to fall. Worries about global growth and weak data from Asia also pushed prices lower.

Asian markets declined across the region. The Nikkei lost 0.68% as the Dollar posted losses against the Yen, falling below 120. Chinese markets were hit by falling energy shares but losses heightened following the Central Economic Work Conference.

European markets are lower today as traders react to signs of slowing global growth.

Oil dropped to a new 5 year low after Iraq cut their prices to Asia in response to a previous cut by Saudi Arabia. The selloff began when OPEC decided not to cut production at their last meeting and analysts estimate that the price could remain low for up to 6 months if no cut is made. The API will release inventory data later today and could spark short term volatility.

Gold rallied and climbed above $1200/ounce as fears over global growth resurfaced following weak data from Japan and Europe. The price also climbed as the stock market declined and people reinvested in the metal. Gains may be limited, however, as speculation has increased that the Federal Reserve could hike US interest rates sooner.

 

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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) Stock Markets Tumbling

Every single major global stock market is trading in the red -- or closed with losses Tuesday -- and US stock futures are looking pretty weak.

Traders are blaming oil for the widespread loss of confidence in stock markets. Crude oil is trading below $64 per barrel, a level not seen since 2009, and that is seriously hurting oil companies and igniting concerns about a squeeze on the booming American oil industry.

"Investors are worried that there is no floor in sight for crushing oil prices," said Naeem Aslam, chief market analyst at AvaTrade.

Across Europe, most indexes are declining by more than 1%. The losses were even more dramatic in Asia, where the Shanghai Composite index plunged more than 5%.


2) Tesco Troubles

In the UK, shares in the grocery giant Tesco (TSCDY) tumbled about 11% after the company issued another profit warning. The grocer has been struggling amid increased competition and an accounting scandal in which it admitted to overstating its profit forecasts. Even the stalwart shareholder Warren Buffett has been cutting back on his investment in the company.


3) Russian Ruble Sinking

The Russian ruble continued declining Tuesday and is trading near all-time lows. The currency has fallen by about 40% against the US dollar this year.

The Russian economy has been hit from all sides this year as it struggles with Western sanctions, declining oil prices and high inflation.

Experts are increasingly worried Russian authorities may introduce capital controls -- which limit the flow of money -- in an effort to manage the economy. However, a move of this kind can further erode confidence in the financial system and spur consumer panic.


4) Monday Market Recap

US indexes lost ground in the previous session. The Dow Jones industrial average lost 0.6%, while the S&P 500 slid 0.7% and the Nasdaq closed down 0.8%.

 

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