What is it? Governor Poloz is due to speak about the commodity cycle and the Canadian economy, in Calgary.
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? September 21st at 2:45pm Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the CAD 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) Reacting to the Fed
All European indexes are declining in early trading as regional markets get their first chance to react to the Federal Reserve's decision to leave interest rates unchanged. Germany's DAX index is leading the markets down with a fall of nearly 2%.
"Leaving U.S. interest rates unchanged would normally be enough to see markets cheer at the prospect of cheap money for longer, but heightened concerns about external factors such as China, market volatility and deflation derailing a stateside recovery has resulted in an understandably cautious stance being adopted," noted Mike van Dulken, head of research at Accendo Markets.
Most Asian markets ended the day with modest gains, but the Nikkei in Japan declined by 2%.
2) U.S. stocks
Stock futures are dipping lower.
Over the previous trading session, the Dow Jones industrial average and the S&P 500 were down, losing 0.4% and 0.3% respectively. The Nasdaq inched up 0.1%.
"Financial markets priced a relatively low probability of a rate hike yesterday and the immediate reaction [to] the unchanged Fed rates was quite moderate," explained Benjamin Dousa, a market analyst at SEB bank.
3) Potential market mover -- Adobe
Investors should watch Adobe (ADBE) this morning. The shares are sinking by about 2% in extended trading after the company released earnings Thursday evening and said it was rejigging its management team.
4) Economic data
The U.S. Conference Board will post its monthly update of leading indicators at 10 a.m. ET. The composite index tracks business cycles, and it fell last month after four months of strong gains.
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What is it? It checks the change in the price of goods and services purchased by consumers, excluding the 8 most volatile items.
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? September 18th 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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What is it? This report includes the FOMC's projection for inflation and economic growth over the next 2 years and, more importantly, a breakdown of individual FOMC member's interest rate forecasts.
It's the primary tool the Fed uses to communicate their economic and monetary projections to investors.
When? September 17th at 2:00pm Eastern Time.
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1. U.S. stocks were little changed at the open on Wednesday as investors awaited the U.S. Federal Reserve's decision on a rate increase.
The Dow Jones industrial average (DJI) rose 12.56 points, or 0.08 percent, to 16,612.41, the S&P 500 (SPX) gained 1.92 points, or 0.1 percent, to 1,980.01 and the Nasdaq composite (IXIC) added 1.37 points, or 0.03 percent, to 4,861.89.
2. The dollar trimmed gains against the other major currencies on Wednesday, after data showed that U.S. inflation ticked lower last month and as investors remained cautious ahead of the Federal Reserve's highly-anticipated policy statement due on Thursday.
4. Consumer price inflation in the U.S. ticked lower in August while prices excluding food and energy costs remained steady, official data showed on Wednesday. The Commerce Department said consumer prices edged down by a seasonally adjusted 0.1% last month, in line with forecasts following a 0.1% increase in July.
5. Package delivery company FedEx Corp (N:FDX) posted a higher quarterly profit on Wednesday, but missed Wall Street expectations due to weak global economic conditions and the strong U.S. dollar.
6. Gold prices pushed higher on Wednesday, pulling away from the previous week’s one-month low but gains were held in check ahead of the Federal Reserve’s decision on U.S. interest rates.
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Cheers! A mega beer deal is brewing and global markets are rising.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1) You can drink to that
SABMiller (SBMRY) shares are surging by about 18% in London after the global beer giant revealed that competitor Anheuser-Busch InBev (AHBIF) is planning to make a takeover offer.
These are the two biggest beer companies in the world, based on the volume of drinks they sell. Their combined market capitalization is about $270 billion.
Shares in AB InBev are also up about 8%.
2) Waiting on the Fed
Traders continue to chatter excitedly about the Federal Reserve meeting, which begins today and ends Thursday. Fed chairwoman Janet Yellen will announce on Thursday afternoon whether the Fed will hike interest rates.
"Markets currently think there is around a one in three chance that the Fed will hike rates this week," said Larry Hatheway, chief economist at investment firm GAM. "Clearly, the China slowdown and resulting market tumult has led the majority of investors to conclude that the Fed will not raise rates this month."
The Fed has been warning for months that a rate rise was in the cards, but many expect it will be delayed until a meeting in December.
3) Stock market overview
U.S. stock futures are holding steady, but there's excitement overseas, helped by the beer merger talk.
Many European stock markets are rising by about 1% in early trade after Asian markets closed the day with a breathtaking surge.
The benchmark stock index in Shanghai rose by nearly 5% and the Shenzhen index shot up by 6.5%.
International markets are rallying following a positive Tuesday in the U.S. The Dow Jones industrial average gained 1.4%, the S&P 500 added 1.3% and the Nasdaq jumped by 1.1%.
As it stands now, U.S. stock indexes are all in positive territory for the month.
4) Potential market mover
HP, Xerox, FedEx: Shares in Hewlett-Packard (HPQ, Tech30) will likely see higher-than-normal trading volume Wednesday after the firm announced plans to cut another 25,000 to 30,000 jobs. This is the latest dramatic downsizing at the once-iconic tech company.
Meanwhile, shares in competitor Xerox (XRX) are jumping premarket, though trading volume is light.
We could also see significant moves from FedEx (FDX) and Cracker Barrel (CBRL), which are reporting earnings ahead of the open.
Oracle (ORCL, Tech30) will report quarterly results after the close.
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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) A rate rise?
Traders across the U.S. and overseas are monitoring the Fed closely as its monetary policy committee prepares to announce its biggest decision in a long time. The Fed must decide whether the U.S. economy is healthy enough for the first interest rate hike in nearly a decade.
The decision could have far-reaching ramifications on stocks, currencies, bonds, mortgages and even car loans.
Expect the news at 2 p.m. ET, and brace for a swift market reaction.
A chorus of influential voices, including the International Monetary Fund and the World Bank, have called on the Fed not to raise rates just yet. Others say it's high time to end the uncertainty.
"The fact that there is uncertainty -- not just in markets (where it is to be expected) but amongst economists -- is a signal that the Fed's attempts at policy transparency have been less than successful," said Paul Donovan, a senior economist at UBS.
2) Stock market overview
U.S. stock futures are dipping down following a two-day rally, partly fueled by expectations that the Fed won't move this month.
European markets are mostly heading lower in early trading, while Asian markets ended with mixed results.
3) Market movers - Cablevision, Expedia, Orbitz, Air Products, Oracle
Shares in Cablevision (CVC) are up about 16% premarket after the cable operator announced it is being bought by Altice (ATCEY), a European telecommunications company.
Altice has agreed to pay $34.90 a share for Cablevision, making the deal worth $17.7 billion including debt. The price represents a 22% premium over Cablevision's closing price Wednesday.
Shares in Expedia (EXPE) and Orbitz (OWW) look set to pop at the open after the companies got clearance from the U.S. Justice Department to go ahead with their merger.
Regulators had been concerned that combining two of the largest search sites for cheap hotel and rental car rates would violate antitrust law.
Shares in Air Products and Chemicals (APD) are up about 3% in extended trading after the company said it will spin off its material technology unit in a tax-free deal.
Oracle (ORCL, Tech30) shares look set to dip when trading begins after the company reported earnings on Wednesday evening.
4) Earnings and economics
Soccer powerhouse Manchester United (MANU) is reporting earnings ahead of the open along with Rite Aid (RAD) and Marcus (MCS).
Adobe (ADBE) will report this afternoon.
On the economic front, the Department of Labor will release its weekly jobless claims report at 8:30 a.m. ET.
Also at 8:30 a.m., expect the August report on home construction from the Census Bureau.
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What is it? It's the broadest measure of economic activity and the primary gauge of the economy's health.
When? At 6:45pm Eastern Time.
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? Food and energy prices account for about a quarter of CPI, but they tend to be very volatile and distort the underlying trend. The FOMC usually pays the most attention to the Core data - so do traders.
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? 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? 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? It's a leading indicator of economic health - manufacturers are quickly affected by market conditions, and changes in their sales can be an early signal of future activity such as spending, hiring, and investment.
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 opened higher on Tuesday after data showed retail sales continued to rise in August but gains were capped by caution ahead of this week's Federal Reserve meeting.
The Dow Jones industrial average (DJI) rose 55.78 points, or 0.34 percent, to 16,426.74, the S&P 500 (SPX) gained 6.85 points, or 0.35 percent, to 1,959.88 and the Nasdaq composite (IXIC) added 12.33 points, or 0.26 percent, to 4,818.09.
2. The dollar edged higher against the other major currencies on Tuesday, despite the release of downbeat U.S. data, as investors continued to focus on the Federal Reserve's upcoming policy statement on Thursday.
3. U.S. consumer spending appeared to grow at a fairly healthy pace halfway through the third quarter, pointing to solid domestic demand that could persuade a cautious Federal Reserve to hike interest rates on Thursday.
Other data on Tuesday, however, showed manufacturing continuing to struggle under the weight of a strong dollar and softening global demand. Factory activity in New York State contracted in September for a second straight month.
4. Retail sales in the U.S. rose less-than-expected last month, official data showed on Tuesday. In a report, the Census Bureau said that retail sales rose to a seasonally adjusted 0.2%, from 0.7% in the preceding month whose figure was revised up from 0.6%. Analysts had expected retail sales to rise 0.3% last month.
5. U.S. manufacturing output contracted more than expected in August, dragged down by a sharp fall in auto production that could moderate economic growth in the third quarter.
American factories churned out 0.5 percent fewer goods last month, the Federal Reserve said on Tuesday.
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Stock market losses in China are dragging down sentiment across the globe again.
U.S. stock futures are dipping and most Asian and European indexes are in the red.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1) Fragile China
Chinese stocks suffered another round of heavy losses on Tuesday, renewing concerns over government efforts to support markets.
The Shanghai Composite shed 3.5% on Tuesday, bringing losses for the week to 6%. Declines have been even steeper on the smaller Shenzhen Composite, which has lost more than 11% over the past two trading sessions.
"Further weak data from China and the continual uncertainty over when the Federal Reserve will begin raising U.S. interest rates has encouraged the markets to begin the week under pressure once again," noted research analyst Lukman Otunuga at currency broker FXTM.
The Nikkei 225 in Japan was one of the few indexes to edge higher Tuesday, gaining 0.3%.
2) Fed chatter
An interest rate decision from the U.S. Federal Reserve is still a couple of days away. But analysts can't stop talking about it.
"The question everyone wants answered is, are we finally at the end of the period of ultra low interest rates?" said James Penn, a senior portfolio manager at Thomas Miller Investment in the U.K.
The first rise in U.S. interest rates in nearly a decade would ripple through markets around the world. The Fed decision will be announced on Thursday.
3) Economics
The Census Bureau is releasing updated U.S. retail sales data for August at 8:30 a.m. ET. Retail sales increased 0.6% in July.
4) Monday market recap
Stocks took a dip Monday. The Dow Jones industrial average and the S&P 500 each shed 0.4%, and the Nasdaq lost 0.3%.
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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? This is the earliest and broadest look at vital consumer spending data. It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
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? Automobile sales account for about 20% of Retail Sales, but they tend to be very volatile and distort the underlying trend. The Core data is therefore thought to be a better gauge of spending trends.
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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1. Sales of Apple Inc's (O:AAPL) new iPhones are on pace to beat the 10 million units the previous versions logged in their first weekend last year, the company said on Monday, sending its shares up nearly 2 percent.
2. The dollar held gains against the other major currencies in thin trade on Monday, as investors remained focused on the Federal Reserve's upcoming policy statement on Thursday.
3. U.S. stocks were lower at the open on Monday as a weary market awaited this week's Federal Reserve meeting that will decide on an interest rate increase. Stocks are expected to remain volatile in the run-up to the policy meeting on Wednesday and Thursday.
"The uncertainty is so high in regard to the announcement ... it leaves investors a little bit paralyzed relative to what to do in anticipation thereof," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.
4. Industrial production in the euro zone rose more-than-expected last month, official data showed on Monday. In a report, Eurostat said that Euro zone industrial production rose to a seasonally adjusted 0.6%, from -0.3% in the preceding month whose figure was revised up from -0.4%.
Analysts had expected Euro zone industrial production to rise 0.3% last month.
5. Oil prices fell on Monday as weaker-than-expected Chinese data weighed on markets, adding to concerns that declining global demand would exacerbate a surplus of crude.
Traders are also waiting to see whether the U.S. central bank raises interest rates for the first time in nearly a decade later this week.
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China's stocks fell on Monday after data suggesting economic growth was running below the 2015 target level of about 7 percent heightened concerns about the health of the economy.
The economic concerns offset the impact of plans announced at the weekend to reform the bloated state-owned enterprise sector and produce "decisive" results by 2020.
Underscoring the fragility of China's financial markets even after some respite last week, currency traders suspected the central bank intervened to prop up the yuan in onshore markets, which wobbled following a report that net capital outflows in the first quarter of the year were more than $100 billion.
"China's economy faces relatively big downward pressure, so investor sentiment remains weak," said Gu Yongtao, strategist at Cinda Securities.
China's stock markets have been on a roller-coaster ride in the past few months, falling close to 40 percent since June and prompting frantic efforts by authorities to restore confidence. Still, at their peak this year, they were up more than 150 percent compared with the lows of 2014.
A surprise devaluation of the yuan in August further roiled markets, reinforcing concerns the economy was weaker than previously thought and forcing China to burn through its foreign exchange reserves to keep the currency stable.
A flurry of economic data in the past week has fed those concerns and prompted Premier Li Keqiang to try to reassure markets that China is on track to meet its main economic growth targets. The government has said it expects GDP growth of around 7 percent this year.
Price data pointed to increased deflation pressure and lower-than-expected industrial output and investment figures this weekend raised further doubts.
"Overall, the economy is very weak and the central bank may have to continue cutting interest rates and banks' reserve requirement," said Zhou Hao, senior economist at Commerzbank AG in Singapore, adding he thought growth would dip below 7 percent in the July-September quarter.
China's benchmark CSI300 index .CSI300 of the biggest listed stocks in Shanghai and Shenzhen closed down 1.97 percent, while the Shanghai Composite Index .SSEC dropped 2.67 percent.
China CSI300 stock index futures fell, some by as much as 7 percent, underlining investor scepticism in the stock market's upside potential.
Government plans on restructuring of state-owned enterprises (SOEs), including allowing private investment, appeared to offer little for investors to feed off.
The mammoth task could involve some 25,000 enterprises owned and managed by local governments and more than 100 managed centrally under the State-owned Assets Supervision and Administration Commission, or SASAC. "The plan has long been expected," said Cinda's Gu. "So interest toward the theme could be short-lived."
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