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? March 30th at 8:0pm Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the NZD to rise.
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During today’s early trading session, Asian stocks traded lower as investors took profits before the first quarter ends. Following the release of mixed Japanese data the Yen strengthened against a basket of major currencies. The yearly and monthly household spending showed better than expected figure, however, the National Core CPI and Retail Sales came out negative.
During today’s early U.S. trading session, negative data weakened the Dollar against the Euro, however, losses were limited as more economic reports showed that the Michigan consumer expectations and sentiment beat analysts’ expectations.
Later today Fed Chair Yellen will be speaking, currency traders will listen closely for any clues on future monetary policy. It is likely that we will see the reaction to her comments when markets open again after the weekend.
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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. Another day of losses?
U.S. stock futures are edging lower, indicating all the major indexes could dip into the red when trading begins.
This follows four consecutive days of drops. The Dow Jones industrial average and S&P 500 have both declined by 2.5% since the start of the week. The Nasdaq has fallen by just over 3%. Before the fall, the tech-heavy index was trading near an all-time high.
"Geopolitical risk [is] set to remain over the weekend with the situation in Yemen tense and Greece needing to deliver serious and useful economic reforms by Monday if it is to receive the funds it needs so badly," explained Mike van Dulken, head of research at Accendo Markets.
2. International markets overview
European markets are mixed in early trading.
Asian markets ended the week with mixed results.
3. Stock market movers -- Adidas, Yahoo, Gamestop, Lufthansa
Shares in Adidas (ADDYY) are up by about 3.5% in Germany as investors react favorably to a turnaround plan presented by management at the sports apparel company. Shares in Yahoo (YHOO, Tech30) are rising by about 2% premarket after the company announced plans to buy back an additional $2 billion of its own shares.
Gamestop (GME) is down by 6% premarket after the company reported quarterly results that missed expectations.
Lufthansa (DLAKF) shares gained 1%, steadying after hefty losses this week following the crash of its Germanwings flight in France Tuesday.
4. Earnings and economics
BlackBerry (BBRY, Tech30), Carnival (CCL) and Finish Line (FINL) are all reporting ahead of the open.
On the economic side, the U.S. government will post its third estimate of fourth quarter GDP at 8:30 a.m. ET.
Then at 10 a.m., the University of Michigan will release its final March reading of consumer sentiment.
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What is it? Fed Chair Yellen is due to speak about monetary policy at the Federal Reserve Bank Conference titled "The New Normal for Monetary Policy," at San Francisco. Audience questions expected.
As head of the central bank, which controls short term interest rates, she has more influence over the nation's currency value than any other person. Traders scrutinize her public engagements as they are often used to drop subtle clues regarding future monetary policy.
When? March 27th at 3:45pm 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 checks the annualized 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? March 27th 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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During today’s early trading session, Asian stocks traded lower after Saudi Arabia and its allies launched airstrikes in Yemen creating cautiousness amongst market spectators. Furthermore, following the news of air strikes in Yemen, the price of oil rallied 6% over concerns of supplies from the oil rich region. Later today, Japan is to release a number of economic reports including the yearly household spending and the National Core CPI.
During the European session, the British pound dropped against the Dollar despite positive data. Positive sentiment for the Dollar continued after the U.S. released data showing that the Initial Jobless Claims showed a reading of 282,000, below the expected figure 290,000, this data supports past remarks made by Janet Yellen that an interest rate hike will be based on an improving labour market.
ECB President Draghi is currently speaking, currency traders will listen closely for any clues on future monetary policy and his comments may cause short term volatility in the markets.
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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. Saudi Arabia acts, markets react
The world's biggest and most powerful oil producing nation -- Saudi Arabia -- has launched airstrikes in neighboring Yemen, where rebels have intensified a violent campaign against the government. Saudi Arabia says it has the support of nine mostly Arab countries.
Traders reacted by swiftly bidding up the price of crude oil futures by about 5%. A barrel is now trading for roughly $51.50.
U.S. stock futures are continuing their drop from Wednesday. Each major U.S. index is down by about 1% premarket.
European markets are all declining by about 1% to 2% in early trading.
Most Asian markets closed with losses.
2. Stock market movers -- Airlines, SanDisk, Schlumberger
Shares in Delta (DAL) and American Airlines (AAL) are both declining premarket by about 4%. Lufthansa (DLAKY) shares continued to decline in the wake of Tuesday's Germanwings crash in the French Alps.
Shares in SanDisk (SNDK) are taking a major hit -- down by about 14% premarket -- after the technology company warned it will bring in lower-than-expected revenue in the first quarter.
Shares in oil field services firm Schlumberger (SLB) are rising by about 1% premarket. This comes after the U.S. Department of Justice said a Schlumberger subsidiary has been fined $233 million for violating U.S. sanctions against Iran and Sudan.
3. Earnings and economics
Apparel retailer Lululemon (LULU) and consulting firm Accenture (ACN) are reporting quarterly results ahead of the open.
Gamestop (GME) will report after the close.
The U.S. government will post data on jobless claims at 8:30 a.m. ET.
4. Wednesday market recap
Markets took a tumble Wednesday. The Dow Jones industrial average lost 292 points, while the S&P 500 fell 1.5% and the Nasdaq plunged 2.4%, its biggest drop in nearly a year.
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What is it? Governor Carney is due to hold a press conference about his role as Chair of the Financial Stability Board, in Frankfurt.
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? March 26th at 1:30pm 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? Governor Zurbrugg is due to speak at the Canada-UK Chamber of Commerce, in London.
SNB Governing Board members are responsible for setting the nation's key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy.
When? March 26th at 1:00pm Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the CHF to rise.
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What is it? Governor Poloz is due to speak at the Canada-UK Chamber of Commerce, in London.
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? March 26th at 9:30am 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 checks the number of individuals who filed for unemployment insurance for the first time during the past week.
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? March 26th 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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During today’s early trading session, Asian stocks traded slightly up as Japanese shareholders are expected to receive higher returns on dividends later this week, however, gains were limited as Indices traded close to 15 year highs.
During the European session, the Euro traded higher against a basket of major currencies following positive German data. The German Ifo Business Climate Index showed a reading of 107.9, higher than the expected figure of 107.3. Traders are now awaiting a number of important economic events taking place tomorrow, including the Retail sales and Core retail sales, negative data could weaken the GBP in the short term.
During early U.S. trade, the Dollar weakened against a basket of major currencies following the release of negative data. The Core Durable Goods orders for the month of February showed a 1.4% decline, new orders were expected to rise by 0.3%, furthermore, the price of US Oil rose off the back of the weaker Dollar.
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What is it? It checks the change in the number of barrels of crude oil held in inventory by commercial firms during the past week.
It influences the price of petroleum products which affects inflation, but also impacts growth as many industries rely on oil to produce goods.
When? March 25th 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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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Feeding frenzy
Shares in Kraft (KRFT) have shot up by about 18% premarket after it announced plans to combine with Heinz to create a food giant called The Kraft Heinz Company. The merger is expected to create the third largest food and beverage company in North America.
Kraft shareholders will receive stock in the new group, plus a special dividend of $16.50 per share funded by a $10 billion cash injection by Heinz owners 3G Capital and Warren Buffett's Berkshire Hathaway (BRKA).
Once the deal is done, Heinz shareholders will own 51% of the combined firm while Kraft shareholders will get a 49% stake.
2. Investors shun Lufthansa and Airbus
Shares in Lufthansa (DLAKY) and Airbus (EADSF)
are both declining by about 1% in Europe following the crash of Germanwings Flight 9525 in the French Alps on Tuesday. Germanwings is Lufthansa's low-cost carrier.
3. Markets overview
U.S. stock futures are looking relatively placid Wednesday, except for Kraft. European stock markets are mixed in early trading. Asian markets ended with mixed results.
In the currency market, the U.S. dollar continues pulling back after a record setting rally. The euro is gaining ground versus a number of other global currencies.
4. Tuesday market recap
It was a down day in the markets Tuesday.
The Dow Jones industrial average lost 105 points. The S&P 500 fell 0.6% and the Nasdaq slid 0.3%.
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What is it? It checks the change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items.
It's a leading indicator of production - rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.
When? March 25th 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 checks the level of a composite index based on surveyed manufacturers, builders, wholesalers, and retailers.
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? March 25th at 5:00am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the EUR to rise.
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