What is it? It checks the level of a diffusion index based on surveyed purchasing managers in 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? November 3rd at 10:00am Eastern Time.

 

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

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What is it? It checks the level of a diffusion index based on surveyed purchasing managers in 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? November 3rd at 4:30am Eastern Time.

 

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

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US stocks climbed as GDP data came out above expectations. Strong gains were seen the day before after the Fed decided to end quantitative easing and made hawkish remarks regarding the labor market.

Asian markets rallied as the Bank of Japan made a surprising decision to extend monetary stimulus.

European markets are higher today in reaction to the Bank of Japan’s decision. Gains are also being seen after the European CPI increased.

Oil has decreased sharply despite positive US GDP data. The drop is being caused by the US dollar which is appreciating from decisions by the Bank of Japan and Federal Reserve.

Gold also declined strongly and is currently trading around $1,164/ounce, its lowest price since 2010. Hawkish comments from the Federal Reserve boosted sentiment and increased the outlook for the economy making Gold a less attractive asset.

 

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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) It's All About Japan

The Bank of Japan has shocked global markets by boosting its aggressive stimulus program in an effort to keep the country's economic revival on track.

Japan's Nikkei index surged by nearly 5% to hit a seven-year high and stock markets around the world are rallying.

Asian markets closed with significant gains and European markets have jumped by at least 1% in early trading.

US stock futures were also surging by more than 1%.

 

2) Stock Market Movers -- Starbucks, GoPro, Citigroup

Shares in Starbucks (SBUX) are taking a tumble -- down by about 3% premarket -- after the company said it expects profits will fall short of expectations during the next three months.

Shares in GoPro (GPRO) are surging by about 15% after the company reported a better-than-expected third quarter and issued an upbeat forecast for its business.

Meanwhile, Citigroup (C) shares are off by about 1.5% premarket after the company said it had to revise its third quarter earnings. The bank said profit was $600 million lower than previously stated due to higher-than-expected legal costs.


3) Economics

The Bureau of Economic Analysis will post monthly personal income and spending numbers at 8:30am ET.

The University of Michigan will report the final version of its monthly consumer sentiment index at 9:55am ET.


4) Thursday Market Recap

US stocks closed higher Thursday. The Dow gained 221 points. The S&P 500 closed 0.6% higher and the Nasdaq moved up by 0.4%.

 

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What is it? It checks the level of a diffusion index based on surveyed purchasing managers in 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? October 31st at 9:00pm Eastern Time.

 

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What is it? It checks the change in the inflation-adjusted value of all goods and services produced by the economy.

It's the broadest measure of economic activity and the primary gauge of the economy's health.

When? October 31st at 8:30am Eastern Time.

 

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

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Diversification is a technique that help you by allocating investments among various financial instruments, industries and other categories. It aims to maximize return by investing in different areas that would each react differently to the same event.

Most investment professionals agree that, although it does not guarantee against loss, diversification is the most important component of reaching long-range financial goals.

How to Diversify

Instead of investing with only one broker, you should invest with as many as possible. It will help you invest in different stocks and currencies as each broker can have different ones. In addition, it’s good to try many broker so you can decide which one you like best and can make you the most money.

Conclusion

It’s best to invest in at least 3 brokers, with 5 brokers being the optimal amount. Any less than 3 and you don’t have enough diversity, while more than 5 might be too much to follow.

 

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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? October 31st at 6:00am 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's among the primary methods the BOJ uses to communicate with investors regarding monetary policy. It covers the factors that affected the most recent interest rate decision, the overall economic outlook, inflation, and clues regarding future monetary policy.

When? October 31st at 2:31am Eastern Time.

 

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

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