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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U.S. stock futures are ticking higher. Many European markets are rallying by about 2% in early trading and Asian markets ended Monday with solid gains.

Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:

 

1. Market movers

 


Volkswagen, Tesla, American Apparel: Shares in Volkswagen (VLKAY) are dropping by another 4% to trade around a four-year low. The stock has fallen by about 40% since mid-September after the company was caught cheating on emissions tests. Analysts at Credit Suisse recently forecast that in a worst case scenario the scandal could cost the company as much as $87 billion. The company has to detail its proposed fix for 11 million vehicles by Wednesday.

Shares in Tesla (TSLA) could be on the move after the electric car company reported solid quarterly sales of its Model S sedan. Third quarter sales were flat compared to the second quarter, but were up by 49% compared to the same period a year earlier.

American Apparel's (APP) stock is set for another drop after the embattled clothing company filed for Chapter 11 bankruptcy protection on Monday. The move is far from a surprise since American Apparel said in August it had "substantial doubt" that it would stay in business. Shares in the business have fallen by nearly 90% since the start of 2015.


2. Google = Alphabet

 

 

Google is officially becoming Alphabet today on the stock market after the company announced a shake-up to its corporate structure. Alphabet is now the parent company of Google and other tech business units.

Shareholders in Google will now own Alphabet class A (GOOGL, Tech30) or Alphabet class C (GOOG) shares. The ticker symbols -- GOOGL and GOOG -- remain unchanged.


3. Earnings and economics

 

 

There's only one earning report to watch Monday. The Container Store (TCS) will post quarterly results this afternoon.

On the economic front, the U.S. Institute for Supply Management will post monthly data about the performance of the service industry at 10 a.m. ET. Growth in services scaled back slightly in August after an unusual boost in July.


4. Weekly market recap

 

 

Last week ended with a bang as all the major indexes shot higher despite a weak jobs report that raised questions about the health of the U.S economy and the timing of the first Fed rate hike in a decade.

The Dow Jones industrial average and S&P 500 closed the week with a 1% gain. The Nasdaq was up by 0.5% by the end of the week after taking a sharp drop on Monday.

 

 

 

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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 11:30pm 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? 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 8:30pm 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? 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? At 5:00pm Eastern Time.

Trading Tip: If the actual number is higher than the forecast, you can expect the NZD to rise.

 

 

 

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