4 Pre-Market News Items

West Palm Beach, FL — May 12, 2010 / (http://www.myprgenie.com) — Stocks were mixed in Asia trade. Shanghai, the Hang Seng and Australia all had a fractional gain but the Nikkei lost a fraction. Europe is higher across the board, led by a 1.8% gain in the Dax, the Footsie is higher by a third of a percent. US stock futures are higher by a half percent. 

  • The preliminary March reading of Japan’s Leading Economic Index gained four points on the month to 102.8, matching the forecast.
  • The preliminary reading of Germany’s Q1 GDP is +0.2% quarter on quarter, above the forecast and the year on year result is +1.6%, better than the estimate for a gain of 1.2%.
  • The March reading of the UK Unemployment Rate was steady at 8.0% as expected. The April reading of the net change in jobless claims fell 27.1k, a bigger drop than expected.
  • The Bank of England  says downside risks to UK growth have “increased somewhat”, according to its’ Quarterly Inflation Report. The near term outlook for inflation is a bit higher than it was in February when the last quarterly report was released, but they see it below two percent in the next two years.
  • The April reading of Switzerland’s Producer and Import Price Index was +0.6% on a month on month basis, two tenths stronger than forecast.
  • US mortgage applications increased 3.9%  in the week ended May 7, according to the Mortgage Bankers Association. It was all because of a 14.8% rise in Refis, new applications for Purchases were down 9.5%.
  • The March reading of the US Balance of Trade is due out at 7:30am CDT, it is expected to be a deficit of $40.5 billion. The April reading of the Treasury’s Monthly Budget Statement is due out at 1:00pm CDT, the forecast calls for a deficit of $56.0 billion.
  • The weekly report on energy inventories is due out at 9:30am CDT. Stocks of Crude Oil are forecast to rise 1.75 million barrels, Gasoline inventories are expected to increase 400k and the estimate for Distillates is +1.3 million.’
  • There is a variety of Fed speakers on the calendar today. Atlanta Fed’s Lockhart is hosting a conference, he will open the event at 7:20am CDT and then give a speech at 11:30am CDT. Boston Fed boss Rosengren is also participating, he will make comments at 9:15am CDT. St. Louis Fed’s Bullard will discuss the economy at 12:15pm CDT.
  • The Treasury plans to sell $24 billion 10 Year Notes today, the results will be announced just after noon CDT.