Friday, December 3, 2010

3 Things you need to know before Trading Today

Stocks in Asian trade were generally little changed and with mixed results overnight. The Hang Seng lost a half percent, but Australia was up a third of a percent, while the Nikkei and Shanghai were both essentially unchanged. Similar story for European Indexes, with both the Dax and Footsie unchanged at the moment. US stock futures are basically unchanged.

*The November reading of China’s service sector Purchasing Managers Index was sharply lower on the month, down to 53.2 from an October result of 60.5. It is the lowest mark since February.

*European debt spreads continue to narrow this morning as reports circulate that the ECB is buying the debt of Ireland and Portugal.

*The final November reading of Germany’s service sector PMI was surprisingly revised higher to 59.2 from 58.6, a steady result was expected.

*The November reading of Switzerland’s Consumer Price Index was a tenth more than forecast at +0.2% on a month on month basis and +0.2% year on year.

*The November reading of the UK’s service sector PMI was down two tenths to 53.0, it had been expected to be steady at 53.2.

*The November reading of the Employment Situation Report is due out at 7:30am CST. The Unemployment Rate is expected to be steady at 9.6%; total Non-farm Payrolls are forecast to be +150k and the private sector reading estimate is +160k; Average Hourly Earnings are expected to be +0.2% on a month on month basis and the Average Work Week estimate is steady at 34.3 hours. The November reading of the ISM Non-manufacturing Index is due out at 9:00am CST, it is expected to rise a half point on the month to 54.8. Also due out at 9:00am CST is the October reading of Factory Orders, the estimate is -1.2% from the month before.

*The Fed is scheduled to buy Treasuries today that are due to mature between 6/15/13 and 11/30/14; the results of the operation will be announced just after 10:00am CST.

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