Japanese markets were closed today due to a public holiday, however, stocks in China closed higher as investors sentiment was boosted over expectations of higher returns on dividends. The index share average was led by gains in the Technology and computing software sectors. The Shanghai Composite Index was slightly up by 0.01%. Following the release of positive data from New Zealand, the NZD is trading with Bullish sentiment against a basket of major currencies. The Exports, Imports, monthly and yearly Trade Balance all beat analysts’ expectations. More data from New Zealand data will be release later this evening, including, the Interest rate decision and RBNZ Rate statement.
During the European session, the Euro was trading higher against a basket of major currencies as developments were made in Greece over the country’s debt bailout agreement. Officials handed the responsibility of the reforms to Deputy Foreign Minister Euclid Tsakalotus and limited the role of Finance Minister Yaris Varoufakis.
At the open of the U.S. session, the Euro strengthened further against the Dollar and has reached its highest level since March 1st. Sentiment weighed on the USD following the release of data out of the states. The GDP Price Index declined 0.1%, analysts were expecting an increase of 0.5%, more importantly, and the GDP for the first quarter grew just 0.2%, below the forecast figure of 1.0%. This negative data added to concerns that the Central bank may further delay an interest rate hike.
Market spectators are now awaiting the FOMC Statement and interest rate decision taking place at 19:00 GMT.
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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. Earnings season
Fiat-Chrysler (FCAU), MasterCard (MA) and Time Warner (TWX) are due to deliver results ahead of the open.
Baidu.com (BIDU, Tech30) and Yelp (YELP) are among the firms reporting after the close.
Twitter (TWTR, Tech30) surprised the market with the early release of its quarterly results on Tuesday after they were leaked...on Twitter. Sales were down, but earnings were better than Wall Street expected. Shares were steady premarket after falling sharply following the earnings release.
2. Economics updates
Investors will get a glimpse as to where the U.S. economy stands when the government releases its first look at gross domestic product at 8:30 a.m. ET. Economists expect the data to show growth slowed in the first quarter of the year.
The Federal Reserve will conclude its two-day meeting on monetary policy and release its monthly statement at 2 p.m. ET. All eyes will be on chair Janet Yellen for any clues as to when the Fed will start hiking interest rates.
3. Dollar dips
The U.S. dollar is declining versus the euro and British pound ahead of the Fed's statement. The greenback has lost ground against major currencies in recent weeks as expectations for a hike in interest rates have been pushed back.
CMC chief markets analyst Michael Hewson said recent signs of softness in the U.S. economy have "raised expectations that any move on rates by the Fed could well be deferred, and this in turn has weakened the U.S. dollar."
4. International markets overview
European markets are dipping in early trading, though luxury goods maker Hermes (HESAF) rose nearly 3% in France after reporting a lift in quarterly sales.
Asian markets ended in the red. Japan's Nikkei was closed for a holiday.
Samsung (SSNLF) shares bucked the downward trend with a 1.4% gain in South Korea after its earnings update revealed some signs of recovery for the troubled electronics maker.
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What is it? It's the primary tool the FOMC 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? April 29th 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? It's among the primary tools the RBA Reserve Bank Board 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? April 29th at 9:30pm Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the AUD to rise.
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What is it? It checks the difference in value between imported and exported goods and services during the reported month.
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? April 29th 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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During the early trading session, Asian stocks were mostly higher as investors sentiment was boosted over expectations of higher returns on dividends. The Nikkei share average was up 0.38%, closing at 20,058 and the Hang Seng slightly up by 0.03%. The Yen traded with low volatility against the Dollar during early trade, as traders remain cautious following yesterday’s announcement on Japan’s credit rating. Fitch downgraded Japan’s credit rating to “A” following a review of the government’s fiscal year’s budget. According to Reuters, the budget failed to lay out reforms to delay a sales tax increase. Furthermore, market spectators are awaiting the FOMC meeting taking place tomorrow.
During the European session, the UK released the Gross Domestic Product for the previous year and first quarter showing lower than expected figures. Following the negative data, the British pound briefly retreated from a monthly high against the Dollar, however the pair is currently trading with Bullish sentiment as the USD weakens ahead of tomorrow’s FOMC meeting.
The Dollar is trading lower against a basket of major currencies as currency traders await the Fed’s monthly policy statement. A number of recent economic reports have shown disappointing figures for employment, Manufacturing and Home sales, indicating that the Central bank may further delay an interest rate hike. Furthermore, the U.S. released more negative data today showing that the CB Consumer Confidence for April measured at 95.2, lower than the expected figure of 102.5.
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In this series of articles we will talk about Technical Analysis. We will teach you everything you need to know about how to analyze the market so you can earn money from trading.
Today we start with our first lesson:
Techinical Analysis - Introduction
The methods used to analyze securities and make investment decisions fall into two very broad categories: fundamental analysis and technical analysis. Fundamental analysis involves analyzing the characteristics of a company in order to estimate its value. Technical analysis takes a completely different approach; it doesn't care one bit about the "value" of a company or a commodity. Technicians (sometimes called chartists) are only interested in the price movements in the market.
Despite all the fancy and exotic tools it employs, technical analysis really just studies supply and demand in a market in an attempt to determine what direction, or trend, will continue in the future. In other words, technical analysis attempts to understand the emotions in the market by studying the market itself, as opposed to its components. If you understand the benefits and limitations of technical analysis, it can give you a new set of tools or skills that will enable you to be a better trader or investor.
In this tutorial, we'll introduce you to the subject of technical analysis. It's a broad topic, so we'll just cover the basics, providing you with the foundation you'll need to understand more advanced concepts down the road.
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What is it? It checks the level of a diffusion index based on surveyed manufacturers, builders, retailers, agricultural firms, and service providers.
It's a leading indicator of economic health - businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment.
When? April 28th at 9:00pm 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? It checks the difference in value between imported and exported goods during the reported month.
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? April 28th 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? It checks the level of a composite index based on surveyed households.
Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity.
When? April 28th at 10:00am 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? Governor Poloz is due to testify, along with Senior Deputy Governor Carolyn Wilkins, before the House of Commons Standing Committee on Finance, in Ottawa.
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? April 28th at 8:45am Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the CAD to rise.
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During the early trading session, Asian stocks were mostly higher as market spectators looked ahead to Thursday’s Bank of Japan Press Conference. It is expected that further stimulus measures may be introduced. The Hang Seng Index was up 1.33%, Shanghai Composite closed 3.04% higher and the Nikkei share average was slightly down by 0.18%. At the close of the Asian trading session, it was announced that Fitch downgraded Japan’s credit rating to “A” following a review of the government’s fiscal year’s budget. The budget failed to lay out reforms to delay a sales tax increase, it did not approach the level of public debt, decline in growth and the low interest rates. This announcement caused the Dollar to rally as the Yen weakened, the pair is currently trading above 119.
During the European session, the Euro is trading cautiously against the Dollar as traders weigh up the ongoing situation in Greece. The country is yet to reach an agreement with its creditors for a bailout extension, however, developments have been made as officials handed the responsibility of the reforms to Deputy Foreign Minister Euclid Tsakalotus and limited the role of Finance Minister Yaris Varoufakis. If an agreement is not reached in the coming months, then the nation could go into default and may result in the country’s exit from the Eurozone.
During early U.S. trade, the Dollar Index weakened following the release of negative data. The U.S Services PMI for the month of April showed a reading of 57.8, despite the figure indicating improvement, analysts had expected a higher reading of 59.5. American stocks opened higher ahead of the release of Apple earnings, the electronics company is to release their results for the first quarter after the markets close later today. Furthermore, Microsoft shares rallied nearly 3% as the companies earnings beat expectations. Nasdaq is currently 0.39% higher, S&P up 0.27$ and Dow Industrial up 0.33%.
Currency traders are awaiting a number of important releases taking place tomorrow, including, the UK GDP, speech by BoC Gov Poloz, and the U.S. Consumer Confidence.
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What is it? Governor Stevens is due to speak at the Australian Financial Review Banking & Wealth Summit, in Sydney.
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? April 27th at 6:40pm Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the AUD 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. Stock market movers -- Amazon, Google, Microsoft, Juniper Networks, Apple
Investors are cheering after a handful of tech heavyweights reported earnings Thursday evening.
Amazon (AMZN, Tech30) stock is surging -- up about 7% premarket -- after the company reported a big jump in quarterly sales. Despite the higher revenue, the online retail giant ultimately lost money over the first three months of the year.
Shares in Microsoft (MSFT, Tech30) are up about 3% premarket after the company released earnings that beat Wall Street's expectations.
Google (GOOGL, Tech30) shares are rising in extending trading, despite falling short of analysts' expectations.
And Juniper Networks (JNPR) shares are jumping -- up nearly 7% -- after the firm's latest earnings surpassed market expectations.
Meanwhile, it's worth watching trading in Apple (AAPL, Tech30) Friday. The company is beginning to deliver its new Apple Watches today. Some customers are going to have to wait longer for their watches.
2. Earnings keep rolling in
American Airlines (AAL), Xerox (XRX) and Steve Madden (SHOO) are reporting ahead of the open.
Regardless of whether the results meet, beat or miss expectations, trading volume is sure to be higher-than-normal for these companies.
3. International market overview
European markets are all posting solid gains in early trading. Asian markets ended the day with mixed results.
4. Thursday market recap
Thursday was a relatively quiet day.
The Dow Jones industrial average gained 20 points, the S&P 500 rose 0.2% and the Nasdaq closed with a 0.4% gain.
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