Stock markets on Wall Street are expected to open flat today (April 30th) after figures revealed the US economy grew at an annual rate of 3.2 per cent during the first quarter of 2010.

As a result, online brokers are anticipating little change when trading begins, with Reuters reporting futures indicate both the Dow Jones and Nasdaq 1000 will be largely unchanged.

Standard & Poor’s 500 futures were down 1.4 points, the news agency stated.

The expansion for the three months to March showed consumers in the US are continuing to spend, however the growth was lower than the 5.6 per cent jump that was seen in the final quarter of 2009.

Senior economist for Wells Fargo Securities Mark Vitner was quoted by Reuters as saying the second quarter will bring “equally robust” data.

“We continue to see a nice bounce back in output,” he remarked.

The growth was slightly below that predicted by a poll of analysts carried out by the news source, which pointed to a figure of 3.4 per cent.

The price of oil briefly climbed above $86 (£56) per barrel during trading today (April 30th) following the release of new figures showing growth in the US economy.

According to the Associated Press, those dealing in commodities on CFD trading platforms saw the price of benchmark crude for delivery in June reach $86.13 per barrel in the morning session, before retreating slightly to be priced at $85.55 by early afternoon.

In the first quarter of 2010, the US economy grew by 3.2 per cent, indicating a recovery is still on track in the country.

However, this was slightly lower than the 3.4 per cent that had been forecast by analysts and down from the 5.6 per cent expansion that was seen in the final three months of 2009.

The oil spill that has taken place in the Gulf of Mexico has so far had a limited impact on the price of the commodity.

“Some expectations are being built into oil prices … but they’ll go back down when reserves are released if there are any disruptions,” Olivier Jakob of Petromatrix was quoted by the news agency as saying.

Oil prices are still some way off the highs of over $140 per barrel that were reached in the summer of 2008.

Stocks have risen on the Japanese markets during trading today (April 30th) after recording their biggest fall in around three months earlier in the week.

CFD brokers have seen both the Nikkei 225 and Topix indexes rise following Wednesday’s sharp dip.

The Nikkei was up 1.2 per cent on 11,057.40 points, Bloomberg reports, while the Topix finished on 987.04 points after jumping one per cent.

Kiyoshi Ishigane of Mitsubishi UFJ Asset Management was quoted by the news agency as saying the global economy is showing signs of “picking up”.

“Investors aren’t very, very bullish but cautiously believe the market will remain resilient,” the analyst stated.

Oki Electric jumped 7.7 per cent on the news it has posted a profit in its latest financial results thanks to a cost-cutting programme, while Canon rose 1.9 per cent after stating its earnings will probably be boosted by the weaker yen.

Overall, 176 companies listed on the Nikkei ended the day higher, while 12 remained unchanged and 37 dipped.

Suggestions Greece will soon agree on budget cuts and receive financial assistance have caused the yen to decline against higher-yielding currencies during trading today (April 30th).

Those carrying out online Forex trading will have seen the Japanese currency dip against the Australian dollar and Korean won, Bloomberg reports.

In London, it was down 0.4 per cent to 87.53 against the former by 07:06 BST and had dipped by 0.6 per cent to 11.7808 versus its Korean counterpart.

Yuji Saito of Credit Agricole Corporate and Investment Bank was quoted by the news agency as saying “sentiment for taking on risk seems to be prevailing” as worries over the problems in Greece subside.

This, he noted will help equities and “is likely to lead to selling of the yen”.

Earlier in the week, new statistics revealed Japanese exports were up for the fourth consecutive month during March ,with the Associated Press reporting there was a 43.5 per cent year-on-year jump thanks to demand for technology products and cars.

The price of gold has risen during trading today (April 29th) amid suggestions the precious metal is to become a popular safe haven for investors.

According to Bloomberg, the price of the commodity for immediate delivery was up 0.2 per cent to $1,167.60 (£764.52) per ounce during morning trading in London, news that may be welcomed by those dealing in metals on CFD trading platforms.

Precious metal strategist for UBS Edel Tully was quoted by the news agency as saying the ongoing financial worries across Europe are likely to result in traders turning their attention to gold.

“As the risks intensify in Europe, I see further reason to own gold,” she remarked, adding the metal is “performing as you would expect it to perform given [the] external circumstances”.

Gold has risen in value by 4.9 per cent this month, putting it on track for its biggest monthly advance since November last year.

However, prices are still lower than the record highs of around $1,200 per ounce that were reached in December.

Asian currencies have gained in value during trading today (April 29th) after the Federal Reserve said it intends to keep US interest rates at a low level.

By 07:05 BST in London, the yen was priced at 93.93 against the dollar, compared to 94.03 in New York yesterday, Bloomberg reports.

The news may be welcomed by those carrying out online Forex trading in the Japanese currency, however traders focusing on the New Zealand dollar will have seen it perform weakest of all the major currencies, dipping by 0.5 per cent against the greenback and 0.6 per cent versus the yen.

There was a 0.4 per cent rise for both the South Korean won and the Malaysian ringgit against the dollar and Mike Jones of the Bank of New Zealand was quoted by the news agency as saying worries over European sovereign debt could cause some safe haven currencies to see further rises.

“Currencies such as the dollar and the yen may extend their recent gains,” he remarked.

Despite the strength of the yen, the Nikkei 225 ended the day 2.57 per cent lower on 10,924.79 points, with 214 firms declining.

Crude oil prices have remained largely unchanged ahead of the release of new inventories data from the US Energy Information Administration.

The figures are due out later today (April 28th) and, according to RTT News, are expected to show those carrying out CFD trading on the commodity markets that inventories of gasoline have risen by 500,000 barrels over the past seven days.

Analysts also forecast inventories of crude oil to have climbed to 1.4 billion barrels.

Futures in light sweet crude oil for delivery in June were up slightly to $82.62 (£54.33) a barrel during trading in the US this morning after they came close to a one-month low in yesterday’s session.

And the news source noted prices could fall in the coming days, due to worries over the ongoing financial troubles in Greece.

Earlier this week, the Organization of the Petroleum Exporting Countries said the current price of crude oil is not holding back the economic recovery.

There has been a decline in the value of gold today (April 28th) due to worries the metal’s attractiveness as an alternative investment will be decreased by the economic recovery.

According to Bloomberg, those carrying out CFD trading have seen the price of the precious metal for delivery immediately decline in London, falling 0.3 per cent – or $2.95 (£1.94) – to $1,164.90 an ounce at 09:27 BST this morning.

“In the short term, there may be safe-haven buying, but I don’t think that will be as important in the weeks ahead,” analyst for Standard Chartered Daniel Smith was quoted by the news agency as saying.

He added worries over Greece’s financial situation will not “derail” the global economic recovery.

Individuals involved in CFD trading can expect the average price of gold to be $1,165 an ounce this year, a report from Peter Mallin-Jones, Andrew Byrne and Eugene King has predicted.

Research carried out by GFMS recently revealed investment demand for gold was greater than jewellery fabrication for the first time in nearly three decades during 2009.

The head of research at the Organization of the Petroleum Exporting Countries (Opec) – which has 12 member countries – has said the price of oil is not damaging to economic recovery.

On Monday (April 26th), the price per barrel stood at $85 (£55) something Hasan Qabazard told Reuters was above the $70-80 benchmark which many of its members classed as fair.

Members of Opec include Iran, the United Arab Emirates, Iraq, Kuwait and Nigeria.

Mr Qabazard stated there is currently 61 days of forward demand cover for Opec stock – a “reasonable” level is 52-54 days.

“I think it’s a reasonable price that will promote economic development and it’s also a reasonable price to producers to invest,” he told the international news agency.

CFD brokers with an interest in the commodity were also told Opec forecasts highlighted little growth in demand for member countries’ crude this year.

Indeed, 2010 will see demand for Opec crude stand at 29 million barrels per day.

The International Monetary Fund (IMF) has revealed economic growth last year stood at two per cent for sub-Saharan Africa (SSA).

Trading platforms may not focus too much on the continent. Many investors may be concerned about the lack of funding across Africa, which could see them turn to more profitable places.

Indeed, minister of finance of Sierra Leone and African Caucus chairman Samura Kamara, along with IMF management director Dominique Strauss-Kahn, said low levels of capital restrain economic progression.

“Infrastructure in SSA remains underdeveloped, impairing competitiveness, discouraging private investment and constraining growth potential,” the pair said.

However, 2010 will prove to be positive for the region, with a predicted 4.75 per cent “rebound” for economic growth.

Some of the key factors hindering economic progression are investment phasing, debt sustainability, planning capabilities and efficiency.

The IMF has 186 member countries, which are represented through a system which recognises their relative size in the global economy.

The Nikkei 225 saw its biggest rise in nine weeks yesterday (April 26th) after data showed the economic recovery in the US is well underway.

Positive housing data boosted the market index, which could have led many CFD brokers to change their investment strategies in light of the rally.

As a result, the Nikkei 225 jumped 2.3 per cent. However, the surge was also backed by positive results posted by Japanese firms.

Toyota is expected to reveal a healthy annual operating profit, boosting its shares by 3.4 per cent.

Such a rise for the automobile maker outstrips the gain made by the index.

“The world’s economy is more resilient than has been thought and investors are more inclined to put their money in stocks,” senior strategist at Tokyo-based Daiwa Asset Management Co Yoshinori Nagano told Bloomberg.

He added investors, which may include CFD brokers, are confident about their corporate earnings outlook.

1. Use Stop Losses

Using a stop loss – a preset level at which an open trade is automatically closed – is standard good practice; this limits your downside risk and also shows trading discipline, which is paramount in developing a healthy trading account. However, when markets are incredibly volatile, you could see some slippage with the position not being able to be closed at the exact level specified. In volatile markets there is often a “gap” on the open, where an index opens substantially lower or higher than expected, perhaps by as much as 10-15%. With a normal stop loss you will get the first available price.

One Financial will provide stop loss cushions with the aim of reducing the effect of slippage on stop loss orders. The stop loss cushion has been developed to provide the client with an element of protection over such market moves. Our stop loss cushions allow for a slippage of 10 pips in the underlying market before the effects are seen on the client’s account.

It is notoriously difficult to set your stop loss at the right distance from the current traded price, but when markets are volatile, you should set your stop losses wider apart than normal. Otherwise you risk being stopped out before having made any money at all.

2.  Reduce Your Trade Size

Margin is one of the biggest advantages of CFD trading and at One Financial our 1% on FX, Bullion and Indices and 3% on commodities are amongst the most competitive in the marketplace but with any margin trading you should always be aware of how much is required to keep your position in the market.

A general rule of thumb is that no single trading position should amount to risk exposure of more than 5% of your available capital. However, in volatile market conditions this kind of leverage is dangerous as any losses will be magnified even more than normal. The best market practice would be to halve your normal trading size over volatile trading conditions.

3. Limit Your Trades

Volatile markets are associated with high volumes of trading which may cause delays in execution. While online trading normally means you place a trade at the bid and offer you see on the screen, some market-makers may widen bid/offer spreads or even temporarily withdraw tradeable prices. This means that execution can be delayed and prices to execute at may not be available at all. One Financial provides fixed spreads no matter what the market conditions but in times of increased volatility it is sometimes better to limit trade execution.

4. Look to Hedge Positions

In extreme market volatility, trading one product could wipe out your trading capital. One way to limit your exposure to these kinds of risk is to trade a combination of correlated and inversely correlated products.

The strategy would limit any downside while taking advantage of volatility. An example would be to buy Gold to take advantage of safe haven buying and then to also buy dollars to hedge your Gold trade. Dollars have been the safe haven currency when times are troubled but Gold can be a more attractive alternative.

The idea of hedging positions means you use inversely related products which do the opposite to each other therefore giving the trades protection if a strategy risks going wrong.

Another approach is to simply sit out the storm on the sidelines and wait until market volatility calms down. When markets are volatile it offers an opportunity to learn faster than normal. In most cases, due to investors pulling out, an inefficient market is created with potentially more profits to be made.

5. Stick to Your Strategy

During volatile times it is easy to be shaken and diverted from your normal trading strategy but most experienced traders apply the same approach to choosing investments as they normally do.

While it’s tempting to react to the volatility, it’s incredibly difficult to predict moves in the short term, so you have to stick to your trading strategies and limit your risk exposure when times are volatile.

Click here to start a live text chat with one of our experienced  Traders.

Gold investment demand is the centre of a new report by a precious metals consultancy.

The study by GFMS revealed investment demand for gold surpassed jewellery fabrication for this first time in 29 years.

Chairman Philip Klapwijk suggested gold prices hit a high of more than $1,200 (£777) per ounce in early December because of a number of economic factors.

Concerns about quantitative easing and the collapse of some financial institutions triggered a rush to gold, a trend CFD brokers may have witnessed last year.

However, the report noted the market had to address “the collapse in jewellery consumption to a 21-year low, or almost half the volumes achieved at their peak in 1997, due to the combination of the onset of a global recession in conjunction with still-elevated prices”.

As a result, scrap reached a record volume of almost 40 per cent of total supply last year.

CFD brokers were also told by GFMS that demand for platinum increased in 2009, with a surge in gross supply reaching 849,000 ounces.

Bankers and finance ministers from the G20 have not made any progression on China’s currency the yuan, reports have said.

Online Forex trading associated with the yuan could be impacted by the result of the International Monetary Funds talks, which saw no move made on China’s currency exchange.

According to Reuters, many US economists believe China’s foreign exchange policy undervalues the yuan by up to 40 per cent. President Barack Obama previously called on China to help develop a more sustainable world economy by moving to an exchange rate that was more market orientated.

“There wasn’t any talk about the yuan … I know everyone is interested. But it wasn’t discussed openly at the G7 or G20 probably because everyone there knew that China won’t like that very much,” Japanese finance minister Naoto Kan said.

Should China reform its currency, online Forex trading could respond in line with any changes made.

As of 09:33 BST today (April 26th) the Chinese yuan equated to $0.15 and £0.095.

An agreement has been signed between the China Banking Regulatory Commission (CBRC) and eight members of the Canadian Securities Administrators (CSA) for Chinese commercial banks.

Under the Qualified Domestic Institutional Investor scheme, approved institutional investors in China, such as fund management firms and banks, can invest in certain overseas financial markets with funds pooled from their mainland clients.

The arrangement was entered into as the securities commissions wanted to strengthen regulatory cooperation with Chinese regulators so that Chinese commercial banks in Canada could develop their wealth management businesses.

Jean St-Gelais, president and chief executive officer of the Financial Markets Authority and chair of the CSA, said: “This could attract new capital to the Canadian market and open new markets to Canadian financial institutions. Through this programme, CBRC recognises the quality of Canadian securities market regulation.”

It is expected to take effect from June 22nd 2010 in Ontario and could boost online Forex trading between the yuan and Canadian dollar.

The CBRC has a number of roles, including authorising changes and the business scope of banking institutions and drawing up rules and regulations that they must abide to.