Stocks were generally higher in Asian trade. Shanghai rose three quarters of a percent, the Hang Seng was up a half percent and Australia gained a third of a percent, but the Nikkei was down a slight fraction on the day. European indexes are mixed on the day, but the Dax and the Footsie are both better by a slight fraction. US stock futures are up about a half percent.*The Q3 reading of Australia’s Consumer Price Index was up 0.6% on a quarterly basis and +3.5% year on year, matching the expectations.
*Merkel addressed the Bundestag earlier today, calling on the German Parliament to rise to their “historic obligation” to defend the euro and Europe. But others are still talking about the rescue plan and they have not yet voted.
*Italy’s Berlusconi has drafted a letter to the EU leaders to explain how he will boost growth and yet still have austere structural reforms. Of course the letter is a substitute for actually doing these tasks on schedule as he was instructed to do, which has not yet happened.
*Spotlight on Brussels. The EU-27 leaders are set to meet at 11:00am CDT. Then comes the meeting of the leaders of the Euro Zone single currency membership at 12:15pm CDT and there is the expectation that they will meet the press or issue a statement after this session. However, there is little chance that they have a full blown plan to present today, more likely a very nice outline without actual numbers. It seems that they will now push off any finalized plan until at least the G20 on November 3, or maybe a few days after that, or so…But of course everything can change with the next headline, and then again with a headline that follows that. There a lots of moving parts.
*The September reading of Germany’s Import Price Index is +0.6% on a month on month basis, as was forecast.
*US mortgage applications were up 4.9% in the week ended October 21, according to the Mortgage Bankers Association; both components rose modestly.
*The September reading of the Durable Goods Orders is due out at 7:30am CDT. Headline Orders are expected to be down 1.0% on a month on month basis and the estimate for Orders ex-transportation is +0.4% on a monthly basis. The September reading of New Home Sales is due out at 9:00am CDT, it is forecast to be 300k units annualized, or +1.7% from the month before.
*The weekly report on energy inventories is due out at 9:30am CDT. Stocks of Crude Oil are forecast to increase 1.475 million barrels, Gasoline inventories are expected to decline 1.75 million and the estimate for Distillates is -2.0 million.
*The Fed is scheduled to sell Treasuries today that are due to mature between 3/15/14 and 10/15/14; the results of the operation will be announced just after 10:00am CDT.
*The Treasury plans to sell $35 billion 5 Year Notes today; the results of the auction will be announced just after noon CDT.
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