3 Things to Know Before Trading

Stocks were broadly higher in Asian trade on Monday. The Hang Seng was among the best with a two percent gain, Australia added 1.85%, the Nikkei was up more than one and a half percent and Shanghai rose a slight fraction. European indexes are strong this morning, with the Dax up about three and a half percent and the Footsie better by more than two percent. US stock futures are higher by well over two percent.

*The Italian newspaper La Stampa reported on Sunday that there was a EU600 billion assistance package for Italy being drawn up by the IMF. Even though this story has been denied by IMF officials there seems to be the sense that a big, mega-plan is in the works that will ring fence Italy and stifle the expansion of the debt crisis…maybe the Fed will stand up as Europe’s last resort if the ECB cannot or will not…hope is springing up as an important ingredient this morning. While the Italian 10 Year yield has fallen today, it remains above 7%; at 7.06%

*German states are reporting the November reading of their Consumer Price Indexes this morning, some of the results include: Saxony, down 0.1% month on month and +2.6% year on year; Brandenburg, +0.2% and +2.6%; Hesse, 0.0% and +2.3%; and Bavaria, 0.0% and +2.5%. The national report is due out later this morning and is expected to be -0.1% on a monthly basis and +2.7% annualized, for the EU harmonized version.

*Black Friday sales were almost $11.5 billion, which would be the biggest dollar amount ever for that day, according to ShopperTrak; who says sales were up 6.6% from the same day last year.

*The October reading of New Home Sales is due out at 9:00am CST; it is expected to be unchanged on the month at 313k units annualized.

*The November reading of the Dallas Fed Manufacturing Activity Index is due out at 9:30am CST, it is forecast to be 5.0; it was 2.3 in October.

*The Fed is scheduled to buy Treasuries today that are due to mature between 2/15/20 and 11/15/21; the results of the operation will be announced just after 10:00am CST.

*The New York Fed is set to release its Q3 report on household debt at 10:00am CST.

Distributed by Viestly