3 Things to Know Before Trading

Stocks were mixed in Asian trade. Shanghai rose more than two percent on the session but Australia lost about one and a half percent and the Hang Seng was lower by 0.8%; the Nikkei was closed for a holiday in Japan. European indexes have reversed earlier losses and are now generally higher on the day, with the Dax and Footsie both currently trading up by about 0.6%. US stock are up by about a half percent.

*Germany’s central bank, the Bundesbank, said in its monthly bulletin on the economy that “the pace of expansion noticeably improved in spring”, as exports and business confidence both rose strongly in the second quarter. But they cautioned that the high current account deficit countries are a “source of danger” for the single-currency region.

*Early this morning Moody’s downgraded Ireland’s debt rating to Aa2 from Aa1, but they say the outlook is stable and that no further rating change is expected in the “foreseeable” future.

*Over the weekend the talks between Hungary and the IMF/EU, that would allow the country to continue to draw on their EU20 billion emergency loan, broke off without an agreement. The IMF said that “a range of issues remain open” and the EU says that Hungary must make “tough decisions, notably on spending” in order to comply with the deficit reduction requirements set out in the loan arrangement. The government in Hungary wants the loan standards eased. The Forint is under pressure this morning as a result breakdown of the talks, which puts further strain on the mortgage payments in that country that are based in Swiss Francs. There is some thinking that Hungary may have to raise rates in an effort to support their currency.

*The July reading of the NAHB Housing Market Index is due out at 9:00am CDT, it is expected to fall one point from the month before to 16.