Sep 08, 2011 12:39 PM IST | Source:

Here's why today is an important day for all markets

US president Barack Obama will deliver his speech on job creation later today.

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Moneycontrol Bureau

The US markets closed near session highs to log their first gain in September amid easing worries over Europe's debt crisis and as investors shrugged off the Fed's Beige Book, which showed slower growth in some of the regions of the US.

On economic data front, according to the Fed's Beige Book, the recovery failed to gain speed in the recent weeks and even weakened in some areas of the nation. Also, weekly mortgage applications continued to decline. It dropped 4.9% percent last week despite near record-low borrowing costs

And in economic data to watch out for: US president Barack Obama will deliver his speech on job creation later today. Reports indicate that he will propose a USD 300 billion package, which will include tax cuts and government spending. Also speaking would be US Federal Reserve chairman Ben Bernanke at the Minnesota Economic Club. [Here's what might be on Obama's mind]

Weekly jobless claims for the week is expected to reduce to 408,000 from 409,000.

The international trade data for July is expected to come out today. The trade balance is expected to post a decline to minus USD 51.9 billion from minus USD 53.1 billion.

Also, the weekly petroleum inventory data by the energy information administration is expected to come out today.

Meanwhile, European shares rallied post a ruling by Germany's highest court which rejected a series of lawsuits aimed at blocking Germany's participation in bailout packages for Greece and other Eurozone countries. The Greek bank stocks surged almost 20%, boosted by hopes by the country's government to implement reforms demanded by its international lenders.

And continuing with news from Europe, the Italian senate approved the Berlusconi government's austerity measures. The heavily amended plan is a mix of tax hikes and spending cuts that now amounts to more than 54 billion euros over the next 3 years.

Meanwhile, even as the vote was taking place, the police used teargas and baton chargers to disperse demonstrators outside the senate. The austerity package still has to pass Italy

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