Tallahassee, FL 12/6/11 (StreetBeat) --Stocks were generally weaker in Asian trade. The Nikkei and Australia both fell about 1.4%, the Heng Seng was one and a quarter percent lower and Shanghai lost a third of a percent. European indexes are mixed this morning with the Dax down about three quarters of a percent and the Footsie better by a slight fraction. US stock futures are up a quarter percent or so as I write.*The Reserve Bank of Australia cut their benchmark cash rate by twenty-five basis points to 4.25% as expected; the second rate cut in as many months. They say the inflation outlook gave them scope for the moderate cut.
*The October reading of German Factory Orders was up 5.2% on a month on month basis; more than five times the expected increase.
*The November reading of Switzerland’s Consumer Price Index fell 0.2% on the month and is now -0.5% on a year on year basis. Both measure were more negative than anticipated and the annualized rate is the lowest in two years.
*The Bank of England introduced a new sterling liquidity facility today in order to address potential financial market strains the result from an intensification of Europe’s debt crisis. The Extended Collateral Term Repo Facility is supposed to provide funding, 30-day loans, against a wide range of collateral as a way to ensure banks will have sufficient access to sterling. The BOE said in a statement today, “this facility is designed to mitigate risks to financial stability arising from a market wide shortage of short-term sterling liquidity.”
*UK house prices fell 0.9% on a monthly basis in November, according to Halifax; it had been forecast to be unchanged on the month.
*The weekly report on chain store sales from ICSC shows a 2.3% decline on a week on week basis for the week ended December 3. The Johnson Redbook report on the same thing is due out at 7:55am CST.
*The December reading of the IBD/TIPP Index on Economic Optimism is due out at 9:00am CST, it is expected to be 42.0, up from 40.6 in November.
*Fed Governor Tarullo is set to testify at 9:00am CST before the Senate Banking Committee on Wall Street reform.
*The Fed is scheduled to buy Treasuries today that are due to mature between 2/15/36 and 11/15/41; the results of the operation will be announced just after 10:00am CST.
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They remain in the trade too long, either because they are greedy or leave it, because they are afraid.
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