What to Know before Trading Today

*Stocks were mixed in Asian trade. The Nikkei gained 1.5% and the Hang Seng was up a fraction, but Australia lost 0.4%. Shanghai was closed again for a holiday. European indexes are generally higher with the Footsie currently up by a quarter percent and the Dax is a slight fraction up on the day. US stock futures are a fraction better as I write.

*The August reading of Australia’s Balance of Trade was a surplus of A$2.35 billion, close to the forecast; it has now been in surplus for five months in a row.

*The August reading of Australian Retail Sales was +0.3% on a month on month basis, one tenth below the estimate.

*The Reserve Bank of Australia unexpectedly kept their benchmark interest rate steady at 4.50%, most analysts were looking for a twenty-five basis point hike, which would have been the first by the RBA since May. The Bank cited slowing domestic demand, but they still think higher rates will likely be needed at some point. The Aussie Dollar was under some pressure after the decision was announced.

*The September reading of China’s HSBC service sector PMI fell to 55.2 from 57.6 the month before, the lowest result in more than a year.

*The Bank of Japan cut their key overnight interest rate from 0.10% to a target range that is bounded by 0.10% and zero. By way explanation of the surprise move the BoJ said that because of the strong yen and global slowdown Japan’s economic improvements were weakening and that waning stimulus will further exacerbate the trend. The Bank also said that they need to pay attention to the downside risks to the economy because of a high level of uncertainty, particularly for the US outlook. The yen is steady on the session versus yesterday afternoon.

*The final September reading of Germany’s service sector PMI was revised three tenths higher to 54.9, a steady reading was forecast.

*The September reading of Switzerland’s Consumer Price Index was unchanged on a monthly basis and +0.3% year over year, matching the expectation for both measures.

*The September reading of the UK service sector PMI rose to 53.8 from 52.1 in August, a fractional decline was forecast.

*The weekly report on chain store sales from ICSC shows on a week on week basis for the week ended October 2. The Johnson Redbook report on the same thing is due out at 7:55am CDT.

*The September reading of the ISM Non-manufacturing Composite Index is due out at 9:00am CDT, it is expected to rise a half point on the month to 52.0.

*The Fed is scheduled to buy Treasuries today that are due to mature between 9/30/16 and 8/15/20; the results of the operation are due to be announced just after 10:00am CDT.