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Minyanville's Before The Bell: Mixed Markets, U.S. Futures Up


Asian markets are lower, and Europe is mixed. Futures are up, but there are still signs of trouble.

U.S. Stock futures are up this morning. S&P futures are trading up 5.70 points at 1444, and Nasdaq futures are up 11.2 points at 1919.

Asian markets closed the day in negative territory. Australia's ASX 200 fell 1.2%, the Nikkei ended down 1.7%, Hang Seng ended down 1.5%, Taiwan's TAIEX fell 1%, and Korea's KOSPI fell 0.2%. India's Sensex was the only gainer adding 0.50%.

Topping the headlines in Asia, China began to issue approximately $80 bln in bonds on Wednesday with an annual coupon of 4.3% for 15 years or longer. The funds will be used to set up a $200 bln investment company to seek higher returns on its $1.33 trillion of currency reserves, making it the world's largest in value. (From Bloomberg)

Meanwhile, China's deputy central bank governor Su Ning said it would actively take measures later this year to stabilize inflation after stating it may miss the previous target of 3%. China's inflation rate surged 5.6% in July and was at 3.5% for the first six months of the year. (From Bloomberg) Click here for our China Package to get up-to-date on the world's fastest growing economy Minyanville style!

Over in Europe, the markets are performing a little better. The CAC is trading +0.09%, DAX is down -0.18%, and the FTSE is trading +0.29%.

The little boost in stocks was attributed to talk that the European Central Bank would cut rates in September. The WSJ reports that the chances of a rate increase by the ECB next week are now less than 20% after ECB President Jean-Claude Trichet made a point to state the ECB's stance was prior to recent market volatility. Check out the Fed package on our Economy page to see our thoughts of the central bank moves here in the U.S.

U.S. stock futures are holding up surprisingly well after another hedge fund stated last night it may liquidate assets backing a $6 bln commercial paper program after the latest credit crunch. Cheyne Capital, set up by former Morgan Stanley bankers, has drawn on all three of its emergency funding facilities and will continue to sell assets to meet liabilities. (From Bloomberg) The contagion continues. Toddo warned of this in his article Redemption Songs written earlier this month. Also, check out his new article today, A Walk On The Beach, as he further warns, "If the credit bubble, twenty years in the making, has indeed popped, chances are that we're in the first inning of a very long game." Click on our Stocks to Watch for other company-specific news.

We have a light radar today with the only significant data being the weekly crude inventories report to be released at 10:30 AM EST. Please click here for the full radar.

Please continue to check back on our News and Views page for continuously updated information you need to know. In addition, it's Hoofy and Boo Wednesday, so check out their new video by clicking here. Good luck, Minyans!
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