5 Things to Know Before Trading

in Day-trading

Stocks results were mixed in Asian trade, but the major indexes were generally strong. The Nikkei gained 1.9%, Australia and the Hang Seng were both up 1.7% and Shanghai added 0.6%. European indexes are also mixed, at the moment the Dax has a gain of 0.6% but the Footsie is off by 0.2%. US stock futures are up a fraction.

*According to the Melbourne Institute the October median Australian Consumer Inflation Expectation is 3.8%, up from 3.1% in September and the highest reading since April.

*The Dollar/Yen fell below 81.00 earlier this morning, the first time the yen has been so strong since 1995 and the low was not far from the intra-day all-time low for the cross of 79.75 set in April of that year. Japan Prime Minister Kan was on the newswires saying they will take decisive steps on the foreign exchange market is necessary and that sharp changed in FX are not desirable. It seems as though the market will continue to probe for a dollar/yen level that is not desirable for PM Kan, no luck so far. But this morning it is a story of dollar weakness, as the yen is steady to lower against other key currencies.

Dollar/euro is trading higher than it has at any time since January, currently at 1.4086, up 125 pips on the session. The Pound is also up at levels versus the dollar not seen since early February and the Swiss Franc has never before been as strong versus the buck as it is today, dollar/swiss is down 83 pips at 0.9500.

*OPEC is meeting in Vienna today, no word yet on any changes in the current quotas.

*Three bits of data are due out at 7:30am CDT. The August reading of the US Balance of Trade is expected to show a deficit of $44.0 billion. The Producer Price Index is forecast to be +0.1% on a month on month basis and the estimate for the Core PPI is also +0.1%. The weekly report of Initial Jobless Claims is expected to be 445k.
*Both of the weekly energy inventory reports are due out today. The Natural Gas inventory report is due out at 9:30am CDT and it is expected to show an increase of 92 bcf. The report on petroleum based energies is set to be released at 10:00am CDT. Stocks of Crude Oil are forecast to increase 1.45 million barrels, but Gasoline inventories are expected to fall 1.5 million and the estimate for Distillates is -1.15 million.

*The Treasury plans to sell $13 billion re-opened 30 Year Bonds today, the results will be announced just after noon CDT.

*Google reports its Q3 earnings after the bell today; average estimate is for an eps of +$6.68.

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5 Things to Know Before Trading

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This article was published on 2010/10/14