Daily Video Review - 09/07
- Donald Herison
- English
- MARKETS NEWS
- Hits: 1291
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1) Stock market movers -- Facebook, Apple, Yahoo, Alcoa
U.S. stock futures are looking perky Thursday.
Shares in Facebook (FB, Tech30), Apple (AAPL, Tech30), Yahoo (YHOO, Tech30) and Alcoa (AA) are all pushing up by about 1% ahead of the open.
This follows a tumultuous Wednesday. The S&P 500 fell by 1.7% after trading was halted at the NYSE due to a "technical glitch." The Dow Jones industrial average also shed 260 points and closed 1.5% lower, while the Nasdaq sank 1.8%.
2) China rebounds
It was a rocky Thursday but Chinese stocks closed the trading session with sizable gains after regulators announced new measures designed to stop the stock market crash.
The main Shanghai Composite rose by 5.8% and the smaller Shenzhen index gained 3.8%.
Chinese stocks went on a record run throughout the first half of the year -- with the Shenzhen rising by more than 120% -- but they have now come crashing back to earth.
3) Greek drama
The Greek government is set to submit details later Thursday about how it will reform its economy, cut spending, and raise more taxes in a bid to receive a third bailout from the European Union.
European markets are all rising as investors hope for a positive resolution to Greece's debt crisis.
Leaders from all 28 nations in the EU will meet Sunday to make a decision on Greece's future.
Meanwhile, Greek banks are set to remain closed until early next week. The Greek economy has ground to a halt as individuals and businesses have been unable to freely access money in their bank accounts.
4) Earnings
Walgreen (WBA) and Pepsi (PEP) are reporting their quarterly earnings ahead of the open.
A favorable report from Pepsi could send its stock price above the all-time high it hit in February. It's traded at fairly even levels since then.
Walgreens will look to reap some of the benefits of a cost-cutting plan after it closed down 200 stores earlier this year.
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What is it? This is the nation's earliest economic data. The market impact fluctuates from week to week - there tends to be more focus on the release when traders need to diagnose recent developments, or when the reading is at extremes. 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 higher than the forecast, you can expect the USD to rise.
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What is it? Listed as a 'Tentative' event because a statement is usually only issued if the Official Bank Rate or Asset Purchase Facility changes (except under extreme conditions). If a statement is not issued this event will be removed from the calendar immediately following the rate release. If issued, the tentative mark will be discarded. It's among the primary tools the MPC uses to communicate with investors about monetary policy. It contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes. Most importantly, it discusses the economic outlook and offers clues on the outcome of future votes.
When? Tentative
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? When there is a change in rates the MPC will also issue a statement. The rate decision is often priced in the market so it tends to be overshadowed by the MPC Rate Statement which is focused on the future. 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;
MPC members vote on where to set the rate. The individual votes are published 2 weeks later in the MPC Meeting Minutes.
When? At 7:00am Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the GBP to rise.
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1. Microsoft Corp (O:MSFT) said on Wednesday it would cut 7,800 jobs and write down about $7.6 billion related to its Nokia (HEL:NOK1V) handset business, which it acquired in 2013.
Most of the job cuts will be in the phone hardware business, underscoring the company's shift from hardware to its core software business.
2. Shares in Asia slumped on Wednesday as efforts by China to support shares failed to halt a rout in progress for more than a week and nervousness over a deadline for Greece to develop a reform package also dragged down sentiment.
The Shanghai Composite Index lost 3.8% by the break after having fallen as much as 8% shortly after the open with trading in more than 500 companies listed in Shenzhen and Shanghai suspended.
3. The dollar fell to one-and-a-half month lows against the broadly stronger yen on Wednesday, dropping more than 1% as plunging Chinese stocks bolstered investor demand for the safety of the Japanese currency.
USD/JPY hit lows of 121.02, the weakest since May 22 and was last at 121.13, off 1.16% for the day.
4. Gold prices fell to a four-month low on Wednesday, as investors continued to monitor developments surrounding Greece's debt crisis and as losses mounted on Chinese stock markets.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange hit an intraday low of $1,146.20 a troy ounce, a level not seen since March 18, before trading at $1,150.00 during European morning hours, down $2.60, or 0.23%.
5. U.S. natural gas prices rose for the first time in three sessions on Wednesday to bounce off a four-week low as market participants looked ahead to fresh weekly information on U.S. gas inventories to gauge the strength of demand for the fuel.
Natural gas for delivery in August on the New York Mercantile Exchange tacked on 2.1 cents, or 0.79%, to trade at $2.738 per million British thermal units during U.S. morning hours.
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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:
U.S. stock futures are down by about 1% ahead of the open, Asian markets ended Wednesday with deep losses, but in Europe most of the major markets are edging up in early trading.
1. Keep an eye on China:
It's impossible to ignore what's happening in the world's second-largest economy right now.
A crisis of confidence has wiped trillions of dollars off the country's stock markets.
The Shanghai Composite lost another 5.9% Wednesday. The smaller Shenzhen Composite lost 2.5%, while Hong Kong's Hang Seng dropped 5.8%.
To put this in perspective, the Shanghai market has dropped by over 30% since hitting a recent peak and the Shenzhen is off by 40%.
"At the moment there is a mood of panic in the market and a large increase in irrational dumping of shares, causing a strain of liquidity in the stock market," China Securities Regulatory Commission said in statement.
More than half of all listed Chinese companies have opted to suspend trading in their shares in what is likely a defense against volatility. But it's possible that they are only delaying the inevitable.
2. What about Greece?:
Ah yes. Greece. The crisis continues as banks are still shut, the flow of money has nearly run dry and the government is butting heads with other European leaders as it tries to arrange a third bailout package.
European markets have taken a collective tumble over the past couple weeks as traders worry about the potential fallout if Greece has to drop out of the euro and begin printing its own currency.
But right now, markets are relatively stable as they await further bailout negotiations in the coming few days.
3. U.S. market overview:
U.S. stock futures are indicating there will be a significant drop at the open.
Premarket data shows the following companies could see their shares tumble when trading begins: Ross Stores (ROST), Freeport-McMoRan (FCX), Alcoa (AA) and Yahoo (YHOO, Tech30). The shares in these firms are all off by over 2% in extended trading.
Looking back at Tuesday, the Dow Jones industrial average gained 93 points, up by 0.5%. The S&P 500 rose 0.6% and the Nasdaq inched up by 0.1%.
4. Barclays ditches CEO:
Shares in the British bank Barclays (BCS) are rising by about 3% in London after the company announced it had ousted chief executive Antony Jenkins.
Chairman John McFarlane will act as executive chairman until a new CEO appointment is made.
The bank said the move doesn't signal a major change in its strategy, but that fresh leadership was needed.
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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 respond by raising interest rates. The average price of various goods and services are sampled and then compared to the sampling done a year earlier.
When? At 9:30pm Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the CNY to rise.
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What is it? Eurogroup meetings are usually held in Brussels and attended by the Eurogroup President, Finance Ministers from euro area member states, the Commissioner for economic and monetary affairs, and the President of the European Central Bank. They discuss a range of financial issues, such as euro support mechanisms and government finances. The meetings are closed to the press but officials usually talk with reporters throughout the day, and a formal statement covering meeting objectives may be released after the meetings have concluded.
When? All Day
Trading Tip: This announcement can greatly affect the EUR so make sure to follow it!
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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.
When? At 9:30pm Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the AUD to rise.
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What is it? This document outlines the government's budget for the year, including expected spending and income levels, borrowing levels, financial objectives, and planned investments. Domestic government spending and borrowing levels can have a significant impact on the economy - increased spending generates work for contractors and creates jobs, while borrowing levels impact the nations credit rating and provide insight into the nation's underlying fiscal position.
When? At 7:30am Eastern Time.
Trading Tip: This announcement can greatly affect the GBP so make sure to follow it!
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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 announcement will hint towards higher interest rates, you can expect the CAD to rise.
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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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1. The U.S. dollar rose to fresh three-month highs against its Canadian counterpart on Tuesday, as the greenback remained broadly supported by concerns over a potential Greek exit from the euro zone and as downbeat Canadian data dampened demand for the local currency.
2. U.S. stocks opened higher before quickly reversing course on Tuesday morning, setting the stage for another volatile session as investors await the outcome of a euro zone summit that will attempt to find a solution to the ongoing debt crisis in Greece.
3. China's stock markets are in trouble. The Shanghai Composite Index has fallen over 25% since mid-June. The Shenzhen, which has more tech companies and is often compared to America's Nasdaq Index, is down even more.
4. Oil prices plunged nearly 8% and broke below $53 a barrel on Monday, the deepest plunge for crude oil since early February.
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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:
Greece, China and Iran are all in the spotlight today.
1. Resuming Greek negotiations:
European finance ministers and heads of state are meeting Tuesday to discuss how to help Greece out of its economic hole. Greece is asking its European creditors for further bailout money, but leaders are reluctant to give in to the nation's demands since they doubt the country's ability to repay any new debts.
Greece defaulted on a debt payment last week to the International Monetary Fund.
The nation has already received two huge international bailout packages since 2010 with a value of roughly 240 billion euros ($264 billion).
European markets are mixed in early trading as investors wait for the talks to begin.
U.S. stock futures are edging up.
2. Volatile China:
Key Chinese stock markets took another tumble Tuesday, with the Shanghai Composite dipping by 1.3% and the Shenzhen index down by 5.3%.
The Shanghai Composite has fallen roughly 30% from its recent high in mid-June, and the Shenzhen Composite has plunged by nearly 40% from its peak.
Chinese authorities announced measures over the weekend that were designed to prop up the markets, but it's too early to say whether they'll stop the bleeding.
State media is reporting that many Chinese companies are simply taking themselves out of the firing line by suspending trading in their shares.
3. Iran talks influence oil:
Investors are waiting for further developments out of Iran.
Negotiators from Iran, the United States, China, Germany, France, Britain and Russia are trying to reach a deal to lift sanctions against Iran in exchange for assurances that the country will maintain a peaceful nuclear program.
If they are able to reach a deal, Iran intends to quickly ramp up oil exports.
The prospect of a deal sent oil prices tumbling Monday. Now crude futures are moving back up by about 1% to trade just over $53 per barrel.
"It is important to emphasize that it will take some time for Iranian oil to hit the market, but certainly traders are willing to price that factor as the story develops further," said Naeem Aslam, chief market analyst at AvaTrade.
4. Earnings:
The Container Store (TCS) will report its latest quarterly results after the markets close.
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What is it? A positive number indicates that more goods and services were exported than imported. 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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