3 Things to Consider While Trading Today

Tomahawk, WI 7/26/12 (StreetBeat) – *Stocks were mixed in Asian trade. The Nikkei rose 0.9% and Australia was up about 0.6%, but the Hang Seng was essentially flat and Shanghai fell a half percent. European markets all rallied this morning when the ECB boss gave a “whatever it takes” comment, in particular Spain and Italy are up three and four percent respectively. US stock futures also caught a bid after Draghi spoke and are now up about one percent.

*With the turn of a phrase ECB boss Draghi rallied stock markets everywhere and debt in the Euro Zone periphery. In the last couple of hours he said; “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro, and believe me, it will be enough.” In his London speech he said the euro is irreversible and that one should not underestimate the political capital in the euro. Spanish and Italian debt yields have fallen sharply in the aftermath of the comments, but at the moment Spain’s 10 Year market is straddling seven percent.

*The June reading of Germany’s Import Price Index is -1.5% year on year, well below the estimate of -0.9%.

*The weekly report on Initial jobless claims is due out at 7:30am CDT, it is expected to be 380k. Also due out at 7:30am is the June reading of Durable Goods Orders. Headline Orders is expected to be up 0.3% month on month and Orders ex-transportation are forecast to be +0.1%. The June reading of Pending Home Sales is due out at 9:00am CDT, it is expected to be +0.3% on the month.

*The weekly report on inventories of Natural Gas is due out at 9:30am CDT, it is expected to show an increase of 26 bcf.

*The July reading of the Kansas City Fed Manufacturing Activity Index is due out at 10:00am CDT, it is expected to improve by one point on the month to 4.

*The Fed is scheduled to buy Treasuries today that are due to mature between 2/15/36 and 5/15/42; the results of the operation will be announced just after 10:00am CDT.

*The Treasury plans to sell $29 billion 7 Year Notes today; the auction results will be announced just after noon CDT.

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