3 Things to Know Before Trading

Atlanta, GA 5/9/12 (StreetBeat) -- Stocks were broadly weaker in Asian trade. Shanghai fell 1.6%, the Nikkei lost one and a half percent, Australia was down 0.9% and the Hang Seng decline three quarters of a percent. European indexes are generally lower this morning; the Dax is down 0.4%, the Footsie is off by one percent and notably Spain is lower by more than three percent. US stock futures are down by about three quarters of a percent as I write.

*The clock is ticking in Greece; Syriza party has two days to form a government. Failing that they will then pass the conch shell over to the Pasok party for them to try to find a majority.

*The German newspaper Handelsblatt reports that ruling coalition politicians from the CDU and FDP parties are willing to offer Greece a controlled exit from the euro zone, without having them withdraw from the European Union.

*Spanish 10 Year yields once again testing 6.00%; higher by about twenty basis points on the day. Reports in the press there say the possible nationalization of Bankia is not pre-emptive but is at the behest of Brussels, because the accounting firm Deloitte refused to sign off on its audit of the bank.

*The March reading of Germany’s Trade Balance is a surplus of EU19.8 billion; a couple billion more than forecast. Both Imports and Exports were up by about one percent on a month on month basis.

*US mortgage applications were up 1.7% in the week ended May 4, according to the Mortgage Bankers Association; both main components, Purchases and Refis, were up on the week.

*The March reading of Wholesale Inventories is due out at 9:00am CDT, it is expected to be +0.6% month on month.

*The weekly report on energy inventories is due out at 9:30am CDT. Stocks of Crude Oil are forecast to increase 2.0 million barrels, Gasoline inventories are expected to decline 750k and the estimate for Distillates is +125k.

*The Fed is scheduled to buy TIPS today that are due to mature between 7/15/18 and 2/15/42; the results of the operation will be announced just after 10:00am CDT.

*The Treasury plans to sell $24 billion 10 Year Notes today; the auction results will be announced just after noon CDT.

*There are three Fed speakers on the calendar today, including: Minneapolis Fed’s Kocherlakota at 9:00am CDT; Cleveland Fed boss Pianalto at 9:45am CDT and Philly Fedster Plosser at 11:00am CDT.

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