3 Things You Need to Know Before Trading

*Stocks in Asia were mixed overnight, but most of the key indexes were modestly lower. The Nikkei lost 0.7%, the Hang Seng was down 0.4% and Shanghai and Australia were off a small fraction. European indexes are however broadly higher, with the Footsie currently up by 0.8% and the Dax higher by just under a half percent. US stock futures are up a third to a half percent as I write.

*For several weeks there has been talk of planned a meeting between Japanese PM Kan and BoJ boss Shirakawa to discuss the strength of the Yen and to figure out what to do about it. But so far, nothing. Finance Minister Noda says he has been told by Kan to continue watching the markets, (what else is he supposed to do?) and adds that he wants to continue close cooperation with the BoJ (how else should he act?). Noda also says that Kan is considering a meeting with Shirakawa when needed, but he offered no indication as to the level of Yen that would make such a meeting rise to the top of the “to do” list. The Yen remains near its fifteen year high versus the buck and not far of a nine year high versus the euro.

*Australia’s election did not produce a clear winner as neither of the major parties achieved a 76 seat simple majority and they now have the first hung parliament in seventy years. Both party leaders, Gillard and Abbott, are now trying to form a coalition with the handful of independent seat winners.

*The preliminary August reading of the German manufacturing sector PMI was 58.2, down three points on the month and a couple of points under the estimate. On the other hand the service sector PMI rose two points to 58.5, better than the fractional decline that was expected.

*The July reading of the Chicago Fed National Activity Index is due out at 7:30am CDT, it is expected to be -0.10. It was -0.63 in June, the first negative reading in four months.

*Kansas City Fed boss Hoenig is scheduled to testify at a field hearing in Kansas before the House Subcommittee on Oversight and Investigations.

*The Treasury plans to sell $7 billion re-opened 30 Year TIPS today, the results will be announced just after noon CDT.