What is it? The European Court of Justice is due to announce a preliminary, non-binding ruling regarding the constitutionality of the ECB's Outright Monetary Transactions policy (OMT), in Luxembourg.

When? January 14th at 3:35am Eastern Time.

 

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US markets declined as investor confidence was hit as the oil sell off continued. Oil prices dropped below $45/barrel on a number of factors and energy shares were hit once again. Losses heightened at the end of the session as John Williams, Federal Reserve Bank of San Francisco President, said that raising interest rates would be a close call due to signs of a stronger labor market coupled with weaker wages.

Asian markets were mixed today. The Nikkei lost 0.64% as the Yen strengthened as a safe haven asset; the Dollar dropped to a low of 117.7 during the Asian session.

European markets are higher today due to indications that the ECB will begin quantitative easing next week. If this step is made, further liquidity would enter the market which is a positive thing for stocks. 

Oil continued to decline and reached a low of $44.2/barrel. Losses were seen after the Prince of Saudi, Alwaleed, stated that oil will never again reach $100/barrel. In addition, the United Arab Emirates oil minister, Suhail bin Mohammed al- Mazroui, spoke earlier today and supported OPECs decision to maintain the current rate of production. Traders should watch the weekly inventory report from the API which will be released at 9:30pm GMT.

Gold is climbing as a safe haven asset as oil prices hit sentiment and equity markets decline. The US stock market opened sharply higher today due to expectations that the ECB will add stimulus and this could push the metal back down.  Traders should watch US data which will be released later in the session including the JOLTS Job Openings at 3:00pm 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) Oil Prices Keep Sliding

US crude futures are down another 3% this morning, trading at roughly $44.50 per barrel. Oil prices fell by more than 5% on Monday.

The price of crude has more than halved over the past few months, piling pressure on the oil industry and many producer nations.


2) Stocks Seem Stuck

US stock futures are little changed, although there's a slight positive bias in the markets.

Over the previous trading session, the Dow Jones industrial average lost 97 points, while the S&P 500 fell 0.8% and the Nasdaq slid 0.8%.

European markets are edging lower in early trading, though the moves are modest. Asian markets ended with mixed results.


3) Welcome News From China

New data from China shows the country's exports rose by 9.9% in December, compared to the previous year. That's better than economists were expecting.

The Shanghai Composite edged up 0.2%, after falling sharply for three consecutive sessions.


4) Earnings

Shares in Alcoa (AA) are expected to jump at the open after the aluminum producer's quarterly results beat expectations.

Home builder KB Home (KBH) will report earnings before the opening bell.

 

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What is it? It checks the change in the price of goods and services purchased by consumers.

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? January 13th at 4:30am Eastern Time.

 

 

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

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NFP data was released on Friday and showed that 252,000 people were hired during the past month. This was very positive and was much higher than the expected increase of 240,000. However, average hourly earnings data was also released and disappointed as it showed a decline of 0.2%. The data offset expectations that interest rates could be raised sooner than expected as wage inflation is another important aspect of the market.

US markets declined following the release. Falling oil prices also hit sentiment.

Asian markets were mixed across the region. The Nikkei remained closed for a public holiday known as ‘Adults Day’. The Hang Seng added 0.45% as two components soared on news of reorganization plans.

European markets are mixed today. Oil prices initially boosted markets as companies reported that they will have stronger earnings due to weaker fuel prices. Markets were also boosted by a report from CNBC which stated that quantitative easing could be based on contributions made by central banks. Gains were short lived, however, as oil extended its sell off.

Oil is trading at its lowest price since March 2009. Goldman Sachs cut their 2015 forecast to $47.15 as they believe the market needs to balance itself out.  The Prince of Saudi, Alwaleed, is also reported to have said that oil will never reach $100/barrel if supply and demand remains at the current level. Trader should focus on this week’s supply data as it may dictate the direction of the market.

Gold gained on the back of wage data. As the data made an interest rate hike seems less likely and the stock market declined, the metal was boosted as it offers more lucrative returns. As the Dollar remains strong we could see limited gains, however, so traders should be careful with any long term ‘Call’ positions.

 

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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) Stocks Up, Oil Down

US stock futures are climbing higher, indicating markets could have a positive start to the week. European stock markets are all rising, with the DAX in Germany up by more than 1%.

The broadly positive indications from the stock market contrast with the falling price of oil. Crude futures in the US are trading around $47 per barrel, down 2%.

The price of crude has more than halved over the past few months, piling pressure on the oil industry and many producer nations.


2) Market Movers

Shares in companies owned by Hong Kong tycoon Li Ka-Shing soared Monday after he announced plans to reorganize his massive empire.

A big takeover is also attracting attention Monday.


3) Earnings Season

This week sees the start of earnings season, when a deluge of quarterly reports hit the market. A key company reporting earnings Monday is Alcoa (AA).


4) Golden Moments for Amazon and Netflix

The Golden Globe awards over the weekend were the latest affirmation of the growing role of players such as Amazon (AMZN, Tech30) and Netflix (NFLX, Tech30) in television.

Amazon's comedic television series "Transparent" picked up two Golden Globe awards, beating shows from HBO, Netflix and The CW Network.

Netflix star Kevin Spacey also earned an award for his acting in the show, "House of Cards."

 

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