Things to know before trading today

THE DAY AHEAD

August 2

*Stocks were generally very strong in Asia trade. The Hang Seng gained 1.8%, Shanghai was up 1.3%, Australia was one percent higher and the Nikkei added a third of a percent. European indexes are following suit, with the Footsie up about two percent and the Dax higher by more than one and a half percent. US stock futures are up more than one percent as I write.

*The July reading of China’s HSBC manufacturing sector Purchasing Managers’ Index fell one point on the month to 49.4; that is the first result below fifty since March 2009 and the fourth monthly decline in a row.

*The final July reading of Germany’s manufacturing sector PMI was unrevised at 61.2; it was 58.4 in June.

*The July reading of Switzerland’s Purchasing Managers Index was up more than one point on the month to 66.9, a fractional decline was the forecast.

*The July reading of the UK’s manufacturing sector PMI was down three tenths on the month to 57.3, it had been expected to come in at 57.0.

*The July reading of the ISM Manufacturing Index is due out at 9:00am CDT. The headline index is expected to fall a couple points from the month before to 54.0 and the estimate for the Prices Paid component is 54.5, down from 57.0 in June. Also due out at 9:00am CDT is the June reading of Construction Spending, it is forecast to be -0.5% on a month on month basis.

*Fed chief Bernanke is scheduled to speak on “Challenges for the Economy and State Governments” at 9:15am CDT before the Southern Legislative Conference annual meeting in Charleston, South Carolina. This did not at first look to be an important appearance, but in light St. Louis Fed’s Bullard’s paper last week advocating quantitative easing as his preferred option if more action is needed, the Chairman’s talk today could be of high interest.

*Treasury’s Geithner is set to deliver remarks on financial reform today at 3:00pm CDT at NYU.