The markets are bright and chirpy today as the day broke out with China’s inflation numbers exceeding estimates and previous score as investors gear up for a slew of data after a few too many quiet days shrouded by the Omicron variant raging and mutating around the world.
Euro Area Industrial Production, nationwide housing price data is expected from the UK while German retail sales, Australia gross domestic product (GDP) growth rate, Swiss Consumer Price Index, Euro Area non-monetary policy European Central Bank meet, US vehicle sales, New Zealand terms of trade and Japan foreign bond investment data landing today.
Infosys, Wipro and British supermarket giant Sainsbury’s expected to report results today.
All commodities including crude oil were flat to upbeat in early trade.
Bitcoin lifted over 1% in early trade breaching the $42,000 mark.
Top business and economic news today:
The US consumer price inflation data expected to show a whopping 7% rise in December, a peak since 1982.
Federal Reserve Chair Jerome Powell assured lawmakers that the four decade peak inflation can be handled without incurring much damage to the US economy, pulling stock bourses into the green and boosting sentiment around world markets collectively.
- US inflation rate year-on-year for December reported as 6.8%, lighter than the expected 7%.
- India inflation rate softer than expected at 4.9% against the expected 5.7%.
- Russia inflation rate in line with expectations.
A glance at oil, metal and renewables
Crude oil prices flat along with precious metals and other major commodities including nickel and gold.
What to watch today:
Euro Area Industrial Production expected to be lighter than 1.1% reported last month.
Japan current account exceeds expectations, almost double of expected JPY585bn.
German Wholesale Price Index expected to be softer.
China inflation rate higher than expected.
Infosys earnings: Chipmaker expected to report earnings per share of 0.1803.
Other earnings: Jefferies Financial, Sainsbury’s, Wipro and many smaller stocks.
- Stocks: All bourses around the world in positive territory today, unfazed by Omicron raging over the wolrd as key data comes out along with some important earnings reports.
- Oil: Oil price down while natural gas and other commodities stay upbeat.
- Gold: Gold and silver trade in the green today with both rising over 0.2%.
- Forex: Dollar flat in today’s trade.
- Crypto: Bitcoin and major cryptocurrencies upbeat today with BTC rising 1% to trade over the $42,000 mark.
Stock market movement around the world
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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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