Treasury Auctions and Fed’s Beige Book

It’s another day of slow economic news but, unlike yesterday, US markets are looking down, potentially ending three days of gains. Globally, European equities are performing strong while China’s Shanghai Index post its seventh straight gain, but equities in Japan and Hong Kong each fell around 1%.

Today's major release is at 2:00, when the Federal Reserve releases the Beige Book, an anecdotal summary of the economy written by each of the 12 District banks. With many economists believing the recession technically ended in May or June, analysts will look to the report to see how central bankers assess the economy just ahead of the September 22 FOMC meeting.

“The survey will likely report a patchy recovery, boosted by the auto cash-for-clunkers program, and continued downward pressure on wages and prices,” said Ian Shepherdson of High Frequency Economics.

The details could certainly have an impact on equity markets, but as for policy, the Fed has made it clear that an accommodative stance will be the norm well into 2010.

Recapping yesterday afternoon’s economic news, consumer credit contracted by $21.5 billion, compared with forecasts looking for a decrease of just $4 billion. That marks the sixth straight contraction â€