3 Things To Know Before Trading

Stocks were weak in Asian trade. Shanghai lost 2.6%, the Hang Seng was down more than two percent as well, the Nikkei dropped about 1.8% and Australia was off 0.9%. European indexes are also broadly lower on the day; the Dax is down only a slight fraction, but the Footsie is off by about 0.9%. US stock futures are down one percent, more or less.

*Among the reasons for the broad based stock weakness is the situation in Libya. Protests calling for the ouster of Muammar Gaddafi have been met by violent resistance from the government, leaving hundreds dead. This response has been followed by many resignations of Libyan ambassadors abroad and met with international condemnation. Libya is said to be teetering on the edge of civil war, says the son of Gaddafi. Libya has been ruled by Gaddafi for four decades and he refuses to leave, which he repeated in a late night broadcast that lasted about one minute. Libya is a member of OPEC and as such the situation there has been particularly sensitive to the price of crude oil. As I write the April futures contract is trading more than $6 higher on the session in New York, at about $96. The April Brent crude oil is currently above $107.

*An earthquake, 6.3 magnitude, hit New Zealand overnight. The epicenter is near Christchurch and there is said to be at least 65 casualties.

*Moody’s has changed Japan’s rating outlook to negative.

*The Bundesbank has rejected the EU proposal to allow the European Financial Stability Facility, the EFSF, to buy government bonds in the secondary market, says the central bank’s monthly report.

*The December reading of the Case/Shiller Home Price Index is due out at 8:00am CST, it is expected to show a year on year decline of 2.40%. The February reading of Consumer Confidence is due out at 9:00am CST, it is expected to be down a fraction on the month to 65.0; the January report has been revised sharply higher, from 60.6 to 65.0.

*The February reading of the Richmond Fed Manufacturing Index is due out at 9:00am CST, it is expected to be steady on the month at 18.

*The Fed is scheduled to buy Treasuries today that are due to mature between 8/31/16 and 2/15/18; the results of the operation will be announced just after 10:00am CST.

*The Treasury plans to sell $32 billion 2 Year Notes today; the results of the auction will be announced just after noon CST.

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