Nokomis, WI 10/4/2011 (PennyPayDay) – THE DAY AHEAD
*Stocks were generally lower in Asian trade. The Hang Seng was among the worst with a decline of 3.4%, the Nikkei lost one percent and Australia fell two thirds of a percent; Shanghai was closed for a holiday. European indexes are under pressure this morning, with the Dax off by about three and three quarters percent and the Footsie is down by more than three percent. US stock futures are down about two percent from the cash market close, as I write.
*The Reserve Bank of Australia left their key cash rate target unchanged at 4.75%, as expected, and left the door open for a rate cut in the near future.
*The meeting of European FinMins in Luxembourg ended without a decision on delivering the next tranche of aid to Greece. The ministers were complimentary to the efforts that Greece was making and Finland seems to have struck a deal on its demand for collateral, but since Greece has the money to fund itself until the second week of November they didn’t see a need to come to a decision on the aid package.
*The weekly report on chain store sales from ICSC showed an increase of 0.1% on a week on week basis for the week ended October 1, but sales were up 3.7% from the comparable week a year ago. The Johnson Redbook report on the same thing is due out at 7:55am CDT.
*The August reading of Factory Orders is due out at 9:00am CDT, it is expected to be unchanged from the month before.
*Fed chairman Bernanke is set to testify before the Joint Economic Committee at 9:00am CDT.
*The Fed is scheduled to buy Treasuries today that are due to mature between 11/15/19 and 8/15/21; the results of the operation will be announced just after 10:00am CDT.