What Is Articles

Stock market losses in China are dragging down sentiment across the globe again.

U.S. stock futures are dipping and most Asian and European indexes are in the red.

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

1) Fragile China

Chinese stocks suffered another round of heavy losses on Tuesday, renewing concerns over government efforts to support markets.

The Shanghai Composite shed 3.5% on Tuesday, bringing losses for the week to 6%. Declines have been even steeper on the smaller Shenzhen Composite, which has lost more than 11% over the past two trading sessions.

"Further weak data from China and the continual uncertainty over when the Federal Reserve will begin raising U.S. interest rates has encouraged the markets to begin the week under pressure once again," noted research analyst Lukman Otunuga at currency broker FXTM.

The Nikkei 225 in Japan was one of the few indexes to edge higher Tuesday, gaining 0.3%. 

2) Fed chatter

An interest rate decision from the U.S. Federal Reserve is still a couple of days away. But analysts can't stop talking about it.

"The question everyone wants answered is, are we finally at the end of the period of ultra low interest rates?" said James Penn, a senior portfolio manager at Thomas Miller Investment in the U.K.

The first rise in U.S. interest rates in nearly a decade would ripple through markets around the world. The Fed decision will be announced on Thursday. 

3) Economics

The Census Bureau is releasing updated U.S. retail sales data for August at 8:30 a.m. ET. Retail sales increased 0.6% in July. 

4) Monday market recap

Stocks took a dip Monday. The Dow Jones industrial average and the S&P 500 each shed 0.4%, and the Nasdaq lost 0.3%.

Ask us about our FREE financial advice program: 

Other Top Stories:

Will Twitter's Share Crash?

Technical Analysis Lesson 1 - Introduction

How I Made Over $30,000 a Year by Investing in Binary Options

Follow us and SHARE this story on Facebook:   

What is it? It's a leading indicator of the nation's trade balance with other countries because rising commodity prices boost export income.

When? Tentative

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

Ask us about our FREE financial advice program: 

Other Top Stories:

Will Twitter's Share Crash?

Technical Analysis Lesson 1 - Introduction

How I Made Over $30,000 a Year by Investing in Binary Options

Follow us and SHARE this story on Facebook:   

What is it? This is the earliest and broadest look at vital consumer spending data. It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity.

When? At 8:30am Eastern Time.

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

Ask us about our FREE financial advice program: 

Other Top Stories:

Will Twitter's Share Crash?

Technical Analysis Lesson 1 - Introduction

How I Made Over $30,000 a Year by Investing in Binary Options

Follow us and SHARE this story on Facebook:   

What is it? Automobile sales account for about 20% of Retail Sales, but they tend to be very volatile and distort the underlying trend. The Core data is therefore thought to be a better gauge of spending trends.

When? At 8:30am Eastern Time.

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

Ask us about our FREE financial advice program: 

Other Top Stories:

Will Twitter's Share Crash?

Technical Analysis Lesson 1 - Introduction

How I Made Over $30,000 a Year by Investing in Binary Options

Follow us and SHARE this story on Facebook:   

1. Sales of Apple Inc's (O:AAPL) new iPhones are on pace to beat the 10 million units the previous versions logged in their first weekend last year, the company said on Monday, sending its shares up nearly 2 percent.

2. The dollar held gains against the other major currencies in thin trade on Monday, as investors remained focused on the Federal Reserve's upcoming policy statement on Thursday.

3. U.S. stocks were lower at the open on Monday as a weary market awaited this week's Federal Reserve meeting that will decide on an interest rate increase. Stocks are expected to remain volatile in the run-up to the policy meeting on Wednesday and Thursday.

"The uncertainty is so high in regard to the announcement ... it leaves investors a little bit paralyzed relative to what to do in anticipation thereof," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

4. Industrial production in the euro zone rose more-than-expected last month, official data showed on Monday. In a report, Eurostat said that Euro zone industrial production rose to a seasonally adjusted 0.6%, from -0.3% in the preceding month whose figure was revised up from -0.4%.

Analysts had expected Euro zone industrial production to rise 0.3% last month.

5. Oil prices fell on Monday as weaker-than-expected Chinese data weighed on markets, adding to concerns that declining global demand would exacerbate a surplus of crude.

Traders are also waiting to see whether the U.S. central bank raises interest rates for the first time in nearly a decade later this week.

Ask us about our FREE financial advice program: 

Other Top Stories:

Will Twitter's Share Crash?

Technical Analysis Lesson 1 - Introduction

How I Made Over $30,000 a Year by Investing in Binary Options

Follow us and SHARE this story on Facebook:   

China's stocks fell on Monday after data suggesting economic growth was running below the 2015 target level of about 7 percent heightened concerns about the health of the economy.

The economic concerns offset the impact of plans announced at the weekend to reform the bloated state-owned enterprise sector and produce "decisive" results by 2020.

Underscoring the fragility of China's financial markets even after some respite last week, currency traders suspected the central bank intervened to prop up the yuan in onshore markets, which wobbled following a report that net capital outflows in the first quarter of the year were more than $100 billion.

"China's economy faces relatively big downward pressure, so investor sentiment remains weak," said Gu Yongtao, strategist at Cinda Securities.

China's stock markets have been on a roller-coaster ride in the past few months, falling close to 40 percent since June and prompting frantic efforts by authorities to restore confidence. Still, at their peak this year, they were up more than 150 percent compared with the lows of 2014.

A surprise devaluation of the yuan in August further roiled markets, reinforcing concerns the economy was weaker than previously thought and forcing China to burn through its foreign exchange reserves to keep the currency stable.

A flurry of economic data in the past week has fed those concerns and prompted Premier Li Keqiang to try to reassure markets that China is on track to meet its main economic growth targets. The government has said it expects GDP growth of around 7 percent this year.

Price data pointed to increased deflation pressure and lower-than-expected industrial output and investment figures this weekend raised further doubts.

"Overall, the economy is very weak and the central bank may have to continue cutting interest rates and banks' reserve requirement," said Zhou Hao, senior economist at Commerzbank AG in Singapore, adding he thought growth would dip below 7 percent in the July-September quarter.

China's benchmark CSI300 index .CSI300 of the biggest listed stocks in Shanghai and Shenzhen closed down 1.97 percent, while the Shanghai Composite Index .SSEC dropped 2.67 percent.

China CSI300 stock index futures fell, some by as much as 7 percent, underlining investor scepticism in the stock market's upside potential.

Government plans on restructuring of state-owned enterprises (SOEs), including allowing private investment, appeared to offer little for investors to feed off.

The mammoth task could involve some 25,000 enterprises owned and managed by local governments and more than 100 managed centrally under the State-owned Assets Supervision and Administration Commission, or SASAC. "The plan has long been expected," said Cinda's Gu. "So interest toward the theme could be short-lived."

Ask us about our FREE financial advice program: 

Other Top Stories:

Will Twitter's Share Crash?

Technical Analysis Lesson 1 - Introduction

How I Made Over $30,000 a Year by Investing in Binary Options

Follow us and SHARE this story on Facebook: