Thursday could be a very interesting day. There's a lot going on in the markets.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. M&A on my mind
Two powerful Chinese Internet startups -- essentially the Yelp and Groupon of China -- have joined forces in a deal that is reported to be worth $15 billion.
The firms -- Meituan and Dianping -- said Thursday that they would jointly establish a new company. Meituan and Dianping are backed by tech giants Alibaba (BABA, Tech30) and Tencent (TCEHY).
In the U.S., Dell and data-storage firm EMC (EMC) are reportedly in discussions about a business combination. Shares in EMC surged by about 8% in extended trading after the merger chatter began.
And in Europe, investors are still waiting for more news on whether AB InBev (BUD) and SABMiller (SBMRY) will merge.
2. Market overview
U.S. stock futures are sinking and the overall market mood is muted.
European markets are mixed in early trading. Asian markets also ended with mixed results.
In China, stock markets reopened after an extended holiday and the key indexes rose by 3% to 4%.
"The Chinese equity market re-opened and bounced, but not as much as some hoped," noted Kit Juckes, a global strategist at Societe Generale.
3. Market movers
Deutsche Bank, Fiat Chrysler: Shares in Deutsche Bank (DB) are swinging wildly between losses and gains in Germany after the bank revealed it will book a nearly $7 billion loss in the third quarter for a write down related to its corporate banking unit.
Shares in Fiat Chrysler (FCAU) are rallying by about 4% in Europe after the United Auto Workers union said it reached a tentative agreement with the automaker. This could avert a strike by 40,000 workers.
4. Earnings and economics
Domino's Pizza (DPUKY) will report quarterly earnings before the opening bell. Then after markets close, investors will hear from Alcoa (AA) and Ruby Tuesday (RT).
On the economic front, the Federal Reserve's Open Market Committee will post the minutes from its September meeting at 2 p.m. ET. Investors will parse through these notes for more information about the Fed's plans for a future rate hike.
In Germany, there was some disconcerting data showing a 5% slump in exports between August and July. That's the biggest monthly decline in exports since January 2009. It's also worth noting that this is before the Volkswagen scandal emerged in September.
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What is it? It's a detailed record of the FOMC's most recent meeting, providing in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
When? At 2:00pm 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? 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? At 2:00pm Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the GBP to rise.
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What is it? 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. Unemployment is also a major consideration for those steering the country's monetary policy.
When? At 8:30am Eastern Time.
Trading Tip: If the actual number is lower than the forecast, you can expect the USD to rise.
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What is it? 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? At 7:00am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the GBP to rise.
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1. U.S. stocks opened higher on Wednesday as crude oil prices rose for the fourth day in a row, with Brent crude on track to post its best 4-day run in more than a month.
The Dow Jones industrial average (DJI) rose 82.71 points, or 0.49 percent, to 16,872.9. The S&P 500 (SPX) gained 9.96 points, or 0.5 percent, to 1,989.88 and the Nasdaq composite (IXIC) added 25.80 points, or 0.54 percent, to 4,774.16.
2. Volkswagen's supervisory board was holding crisis talks on Wednesday, facing deadlines from German regulators and U.S lawmakers to explain its rigging of diesel emissions tests and what it is doing to tackle the scandal.
The 20-person board gathered at the German carmaker's headquarters in Wolfsburg at around 9 a.m. (0700 GMT). Sources close to the matter said talks were likely to last for hours.
3. A recovery in oil prices spread to stock markets and emerging market currencies on Wednesday, with the prospect of more support from the world's central banks offsetting more disappointing economic data.
After a dismal summer quarter in which global equities fell the most since 2011, traders say fund managers were ready to pile back in, hoping the recent market reversal was a hiccup rather than the end of a six-year bull market.
4. Gold prices were trading close to two-week highs on Wednesday as expectations that the Federal Reserve may hold off raising interest rates until next year continued to weigh on the dollar.
U.S. gold futures for December delivery were last at $1,147.4 an ounce, after rising to highs of $1,152.7 earlier.
5. The U.S. dollar dropped to two-month lows against its Canadian counterpart on Wednesday, despite weak Canadian data as demand for the greenback remained under pressure after investors pushed back expectations for a U.S. rate hike until 2016.
USD/CAD hit 1.2987 during early U.S. trade, the pair's lowest since August 13; the pair subsequently consolidated at 1.3002, sliding 0.24%.
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Investors are toasting a massive takeover offer in the beer market.
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 takeover time
Anheuser-Busch InBev (AHBIF) has offered to buy SABMiller (SBMRY) for $104 billion in cash. If the deal goes through, it would be one of the biggest takeovers of all time, and the biggest deal so far this year.
Shares in both companies are rising by about 3% as investors cheer the news. However, SABMiller said Wednesday it believes the bid isn't quite high enough.
AB InBev notes that its offer of £42.15 per share ($64.35) represents a 44% premium over SABMiller's share price before takeover talk began in September.
AB InBev said it originally offered £38 per share, then £40 per share, before sweetening the bid further.
Meanwhile, competitors Diageo (DEO) and Heineken (HEINY) announced plans to swap some business units. Part of the deal involves Heineken selling its 20% stake in Guinness Ghana Breweries to Diageo.
2. Stock market movers
Volkswagen, Yum: Shares in Yum! Brands (YUM) took a 17% dive in extended trading on news that the fast food giant is still struggling in the Chinese market following a series of food safety scandals. The company owns KFC, Taco Bell and Pizza Hut.
Shares in Volkswagen (VLKAY) are shooting up by about 5.5% in Europe after the automaker's new CEO told a German newspaper that the company would start a recall in January to fix millions of diesel vehicles that contain emissions cheating software. The recall will last throughout 2016.
3. Market overview
U.S. stock futures are rising ahead of the open and global markets are looking perky.
Nearly all European markets are up in early trading, while every major Asian markets closed out the day with gains.
Crude oil futures are also within spitting distance of $50 per barrel, rising by another 2% Wednesday after a surge of about 5% on Tuesday triggered by lower U.S. production. Later in the morning, oil traders will be closely monitoring a weekly report on U.S. crude inventories, which will be posted at 10:30 a.m. ET.
4. Earnings
Agricultural giant anto (MON) is reporting ahead of the open.
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What is it? It influences the price of petroleum products which affects inflation, but also impacts growth as many industries rely on oil to produce goods.
When? At 10:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.
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What is it? It's an excellent gauge of future construction activity because obtaining a permit is among the first steps in constructing a new building.
When? At 8:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the CAD to rise.
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1. U.S. stocks fell marginally at the open on Tuesday as investors booked profits after the S&P 500's best 5-day run since 2011.
The Dow Jones industrial average (DJI) fell 13.56 points, or 0.08 percent, to 16,762.87. The S&P 500 (SPX) lost 2.38 points, or 0.12 percent, to 1,984.67 and the Nasdaq composite (IXIC) dropped 13.95 points, or 0.29 percent, to 4,767.31.
2. Oil prices rose on Tuesday, heading for the first three-day gain in five weeks, on signals that the world's biggest producers of crude may act jointly to support prices, which have halved over the past year.
Brent crude, the global oil benchmark traded up 75 cents at the $50.00 a barrel milestone for the first time in two weeks by 1243 GMT, or 1.4 percent day on day. It rose 2.3 percent on Monday.
3. The euro pushed higher against the weaker dollar on Tuesday as diminished expectations for a rate hike by the Federal Reserve this year pressured the greenback lower.
EUR/USD rose 0.46% to 1.1237 from 1.1186 late Monday. The dollar remained on the back foot after Friday’s unexpectedly weak U.S. jobs report prompted investors to abandon expectations for a rate hike by the Fed before the end of 2015.
4. New Volkswagen (XETRA:VOWG) Chief Executive Matthias Mueller warned staff on Tuesday to brace for "massive cutbacks" in response to the diesel emissions scandal that has hammered the company's stock and reputation.
Speaking to employees at VW headquarters in Wolfsburg, Mueller, who replaced longtime CEO Martin Winterkorn late last month, said all the company's investment plans would be put under review and an existing cost-cutting program accelerated, cautioning, "this will not be painless".
5. U.S. exports took a hit from an ailing global economy in August and imports from China surged, fueling the largest expansion of America's trade deficit in five months. The Commerce Department said the trade deficit grew by 15.6% to $48.3 billion in August.
Overall exports fell 2% to their lowest level since October 2012. Imports rose 1.2%, even though America bought the least petroleum from abroad since September 2004.
The data illustrates the U.S. economy's vulnerabilities to a strong dollar and weak demand in foreign markets, which could impose further caution on the Federal Reserve's plans to hike interest rates.
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Up or down? Investors can't make up their minds.
Stock markets are bouncing all over the place Tuesday after a stunning rally on Monday.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Market overview
U.S. stock futures are looking weak Tuesday, though they have clawed back from earlier lows. European markets had initially been in the red, but are now climbing into positive territory.
In Asia, most markets closed the day with gains. Chinese stock markets remain closed for a holiday.
In the commodities market, prices are staying relatively steady. Oil is trading around $46 per barrel and gold is holding at $1,138 per ounce.
2. Stock market movers
DuPont, Facebook, Amazon: Shares in American chemical company DuPont (DCDEX) are rising by 5% after the firm announced CEO Ellen Kullman is retiring and a new interim CEO is taking over. This firm also cut its earnings expectations for the year, blaming the revision on a strong dollar.
Shares in Facebook (FB, Tech30) and Amazon (AMZN, Tech30) are dipping a touch premarket after Europe's top court made a ruling that could damage the way tech companies use and share data within their own business units. The court ruled that European countries have the right to ban U.S. companies from transferring data back to the U.S.
3. Earnings and economics
Pepsi's (PEP) earnings are coming out ahead of the market open.
After the close, the owner of KFC and Taco Bell will report results.
On the economic side, the Census Bureau will post the national trade balance for August at 8:30 a.m. ET. The deficit narrowed in July.
4. Monday market recap
All the major U.S. stock indexes shot up by more than 1.5% on Monday. The Dow Jones industrial average led the way with a 1.9% gain.
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What is it? It's among the primary tools the BOJ 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 projects the economic outlook and offers clues on the outcome of future rate decisions.
When? Tentative
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the JPY to rise.
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What is it? As head of the ECB, which controls short term interest rates, he has more influence over the euro's value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.
When? At 1:00pm Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the EUR to rise.
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What is it? It's a leading indicator of the nation's trade balance with other countries because rising commodity prices boost export income.
When? Tentative
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? 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 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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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 8:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the CAD rise.
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1. Wall Street opened higher on Monday, after a disappointing U.S. jobs report on Friday hardened views that the Federal Reserve will not raise interest rates this year.
Global stock markets rose on Monday with investors expecting the era of near-zero interest rates to continue for a while yet. Friday's U.S. nonfarm payrolls report for September showed job growth slowed in the last three months.
2. Russia is escalating Syria's civil war by targeting the moderate opposition, U.S. Defense Secretary Ash Carter said on Monday, comparing Moscow's effort to bolster Syrian President Bashar al-Assad to tethering itself to a sinking ship.
"By taking military action in Syria against moderate groups targets, Russia has escalated the civil war," Carter said in a speech during a trip to Spain.
3. The Institute of Supply Management non-manufacturing purchasing managers’ index fell more-than-expected in the last quarter, official data showed on Monday.
In a report, Institute for Supply Management said that ISM Non-Manufacturing PMI fell to a seasonally adjusted annual rate of 56.9, from 59.0 in the preceding quarter. Analysts had expected ISM Non-Manufacturing PMI to fall to 57.5 in the last quarter.
4. Uber Inc's aggressive global expansion is looking costlier and riskier than ever as the company struggles with regulatory and competitive obstacles in major markets.
Just last week, the company faced a police raid on its European headquarters in the Netherlands, a criminal trial of two top executives in France, a ban on its services in Rio de Janeiro and proposed new regulations in London and Toronto that could cripple its services in those cities.
5. The dollar remained broadly lower against the other major currencies on Monday, as Friday's U.S. jobs data dampened expectations for a U.S. rate hike before the end of the year and as investors eyed an upcoming report on U.S. service sector activity.
The dollar was higher against the yen, with USD/JPY up 0.28% at 120.23, off Friday's one-month low of 118.66, as investors locked in profits on the greenback’s fall.
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Stocks in Europe joined a rally in commodities and emerging markets on speculation the Federal Reserve will not raise interest rates following signs of weakness in the U.S. economy.
The Stoxx Europe 600 Index rose a second day, and U.S. equity-index futures climbed after Friday’s worse-than-forecast jobs data sent the Standard & Poor’s 500 Index 1.4 percent higher. The MSCI Asia Pacific Index headed for its longest streak of gains since July. Commodities including copper and oil advanced, while the Bloomberg Dollar Spot Index dropped a third day.
Glencore Plc was buoyed in London amid reports the commodities trader is in talks with potential buyers of its agriculture business. “Interest-rate hikes for the moment are off the table,” said Patrick Spencer, equities vice chairman at Robert W. Baird & Co. in London. “It’s October, traditionally the market tends to rally here into year-end.”
The odds of Fed liftoff this month fell to 8 percent after U.S. reports showed the pace of hiring slowed in September and wage growth stalled, spurring speculation policy makers will take longer to remove stimulus that has helped repair the global economy.
With futures traders not seeing an increase from near zero until at least March, investors are returning to emerging-market assets and higher-yielding currencies. The Institute for Supply Management’s non-manufacturing index fell to 57.5 last month from 59 in August, economists said before today’s report.
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