3 Things you need to know before Trading Today

Stocks were broadly higher in Asian trade. The Nikkei led the way with a gain of 2.7%, Shanghai also added more than two percent and the Hang Seng and Australia were up 0.5% and 0.7% respectively. European indexes are mixed but both the Dax and Footsie are currently lower by about 0.4%. US stock futures are essentially unchanged as I write.
*The Q2 reading of Australian Consumer Prices was surprisingly light, a gain of 0.6% on a quarter on quarter basis versus the expectation of +1.0%. Consumer prices on a year over year basis were also less than forecast at +3.1%. The Aussie fell a bit on the news as traders rethought the future path of the RBA monetary policy; no move is expected from the central bank when they meet next week and some are taking them off the board for the rest of the year.

*German states are this morning releasing the July reading of their Consumer Price Index, some of the results include: Saxony, +0.2 on a month over month basis and +1.2% year on year; Hesse, +0.3% and +0.9%; Brandenburg +0.3% and +1.1%; and Bavaria +0.3% and +1.2%. The national CPI, EU Harmonized, is due out later this morning, it is expected to be +0.2% on a month on month basis and is forecast to be +1.1% on a year over year basis.

*US mortgage applications fell 4.4% in the week ended July 23, according to the Mortgage Bankers Association, but the purchase component was up 2.0%, the second week in a row this has shown a gain.

*The June reading of Durable Goods Orders are due to be released at 7:30am CDT. Headline Orders are expected to rise 1.0% on a monthly basis and the estimate for Order ex-transportation is +0.4%.

*The weekly report on energy inventories is due out at 9:30am CDT. Stocks of Crude Oil are forecast to fall 1.725 million barrels, inventories of Gasoline are expected to rise 275k and the estimate for Distillates is +2.0 million.

*The Treasury plans to sell $37 billion 5 Year Notes today, the results will be announced just after noon CDT.

*The Fed’s Beige Book, the anecdotal economic report prepared for use at the upcoming FOMC meeting, is due to be released at 1:00pm CDT.

*The Senate Banking Committee is expected to vote at about 1:30pm CDT on the nominations of Janet Yellen, Peter Diamond and Sarah Bloom Raskin for position on the Fed Board of Governors, including Yellen as vice chairman.