Welcome to Monday’s ‘Just A Minute’. Here’s a 60 second summary of some of the key market activities today:
- Main trading events of the day: UK Manufacturing PMI @ 09.30 & U.S. ISM Manufacturing @15.00 GMT
- Stocks to watch: Yum Brands, Anadarko Petroleum & Sysco Corp
- Which emerging market currency would you buy? Emerging market currencies have come under heavy selling in the wake of massive fund outflows but this hasn’t stopped long-term investors from seeking out buying opportunities. There will be some very attractive opportunities in emerging markets with some big opportunities in 2014. In a current survey conducted by CNBC which questions participants on their favourite emerging market currency, the Mexican Peso currently leads at 38%.
What We’re Watching Today: Energy
Some of the world’s largest oil companies have reported poor earnings. Profits at Exxon Mobil, the biggest U.S. oil company, are down 27 percent off its worst fourth-quarter earnings in four years. Royal Dutch Shell, Europe’s biggest oil major, saw its profits tumble 48 percent. Although ConocoPhillips reported a 74 percent jump in fourth-quarter net income, this was mainly from all the “non-core” assets it has unloaded recently. Production from continued operations is well below where it was a year ago so overall, there’s not much optimism out there.The world’s major oil companies all suffer from some version of the same problem, basically spending more money to produce less oil. The world’s cheap, easy-to-find reserves are virtually gone and are running out faster and faster. We’re keeping an eye on oil stocks…
Trading Tip:
Stock Market Volatility
There’s no escaping the fact that markets are volatile. Sometimes they are less so, but nonetheless, a certain level of volatility is always present. But what do you do when they become uncomfortably so? Investors have a clear choice: either fall victim to the volatility or embrace it in order to generate a profit. The strategy is simple: buy good companies when they dip on bad news that is likely to have a temporary effect in the short-term, but either no impact or a positive impact in the long-term. Good companies almost always recover from temporary setbacks. A refinement to the strategy is to watch for the news that the stock market perceives as bad in the short-term, but in reality is good news for the long-term. Watch those markets!
Source: Market Watch (WSJ)
Tech
Apple has been exploring a variety of different charging methods for its upcoming “iWatch” smart watch project. At the top of the list for Apple appears to be induction charging, allowing users to recharge their watches wirelessly. The iWatch is expected to sport a curved glass screen and incorporate a solar-charging layer into the screen, which could power the device during the daytime. Battery life has been one of the main reasons for the delay of the release of the iWatch. Keep a look out for news regarding this release as it could fire up Apple stock again…
That sums up Monday’s highlights! We wish you a prosperous start to the trading week. Remember to keep in touch with us on Facebook, Google+ & Twitter for all the latest news, information, tips and more! Trade with the experts and become a superior trader!
