3 Things to Know Before Trading

*Stocks were little changed in the markets that were trading in Asia, with the Nikkei up 0.2% and Australia was flat. European indexes are broadly lower this morning with the Dax off by more than one percent and the Footsie down 0.9%. US stock futures are down by a third to a half percent.

*The Bank of Japan kept rates and other policy initiatives unchanged at their policy meeting; but they expect the economy to return to a moderate recovery path. Governor Shirakawa says they are closely monitoring the impact of the strong yen on the economy.

*The preliminary January reading of the Euro Zone manufacturing sector Purchasing Managers Index was up 1.8 points to 48.7, beating the expectation of just a fractional gain. The service sector PMI was also better than forecast, it rose 1.7 points to 50.5.

*The preliminary January reading of Germany’s manufacturing sector PMI was up two and a half points from the month before to 50.9, it had been expected to be 49.0. The service sector PMI added 2.1 points to 54.5, but was forecast to increase only one tenth.

*Late yesterday SP downgraded the credit ratings of several French banks, including Soc Gen and Credit Agricole.

*The EU Fin Mins rejected the latest iteration of the Greek debt swap deal, insisting that the coupon on new Greek bonds must be below the average of 4.00% that was said to be part of the discussions. The Fin Mins are instead seeking coupons below 3.5% for debt due to mature on or before 2020 and below 4% over the 30 year horizon of the debt package.

*The weekly report on chain store sales from ICSC showed a sales decline of 1.4% on a week on week basis for the week ended January 21. The Johnson Redbook report on the same thing will be out at 7:55am CST.

*The IMF is set to release its World Economic Outlook at 9:00am CST.

*The January reading of the Richmond Fed Manufacturing Index is due out at 9:00am CST; it is expected to be 7, up from 3 the month before.

*The Fed is scheduled to buy Treasuries today that are due to mature between 1/31/18 and 11/15/19; the results of the operation will be announced just after 10:00am CST.

*The Treasury plans to sell $35 billion 2 Year Notes today; the auction results will be announced just after noon CST.

*The FOMC begins their two-day meeting today, but no word from them until tomorrow.

*President Obama is set to deliver the State of the Union Address tonight at 8:00pm CST.

Distributed by Viestly