Wednesday's Events: German Inflation Data; U.S. Durable Goods, Oil Inventories

German inflation data and comments from ECB's Lucas Papademos will top the macroeconomic release menu for the European session as U.S. markets prepare for durable goods, weekly oil inventories and a two-year bond auction. Canada's main releases for the day include some employment data followed by a real return bond auction at noon.

At 2 a.m. EDT, markets will receive German import prices for July. The consensus expects a 0.5% month-over-month increase following June's 1.5% gain, while annual import prices are expected to increase 9.2% compared to June's 8.9% rise.

At 3:25 a.m. EDT, European Central Bank Vice-President Lucas Papademos will speak at a conference in Buenos Aires, Argentina.

At 3:30 a.m. EDT, Italy will release its consumer confidence index for August. The consensus expects a rebound in the headline index to 96.4 from the previous 95.8 level.

At 4 a.m. EDT, Germany will release regional CPI figures for August, followed by the national figures. Headline CPI is expected to decline 0.2% month-over-month following July's 0.6% gain while annual inflation is expected at 3.2% compared to 3.3% in July. Harmonized with the euro zone, CPI is expected to contract 0.2% on the month after July's 0.7% increase, and annual HICP is projected at 3.4%, lower than the previous month's 3.5% level.

At 7 a.m. EDT, the U.S. Mortgage Bankers Association will release mortgage applications for the week ending Aug. 22. In the previous week, applications declined 1.5%.

At 8:30 a.m. EDT, Statistics Canada will release payroll employment, earnings and hours for June. In May, average weekly payrolls earnings rose 0.3% month-over-month.

Simultaneously, Statistics Canada will release the second-quarter international travel accounts, which totalled C$3.1 billion in Q1.

Also at 8:30 a.m. EDT, the Commerce Department will release durable goods orders for July. The consensus expects a flat reading in July following June's 0.8% month-over-month expansion. Excluding transportation, durable good are expected to decline by 0.7% on the month following June's 2.0% increase.

At 8:35 a.m. EDT, Atlanta Fed President Dennis Lockhart (non-voter) will speak on inflation at Georgia State University's Economic Forecasting Conference. An audience Q&A will follow.

At 10 a.m. EDT, the U.S. Bureau of Labor Statistics will release metropolitan area employment and unemployment for July.

At 10:35 a.m. EDT, the U.S. Energy Information Administration will release oil inventories for the week ending Aug. 22. Economists are expecting a 1100k build in crude oil reserves following the previous 9390k increase. Gasoline inventories are expected to fall 2450k following the previous 6202k decline. Distillate inventories are expected to add 600k barrels after rising 481k in the previous week. Refinery utilization is expected to expand 0.23% after falling 0.2% in the previous week.

At noon EDT, the Bank of Canada will sell C$500 million in 2041.12.01 2.00% real return bonds.

Also at noon, markets will receive the Chicago Federal Midwest Manufacturing Index for August. In July the index stood at -0.67.

At 1 p.m. EDT, the U.S. Treasury will sell $32 billion in two-year treasury notes.

2:00 DE Import Price Index M/M July Exp: +0.5% Prior: +1.5%

2:00 DE Import Price Index Y/Y July Exp: +9.2% Prior: +8.9%

3:30 IT Consumer Confidence S.A. August Exp:96.4 Prior: 95.8

4:00 GE CPI- Hesse M/M Prior: +0.5%

4:00 GE CPI- Hesse Y/Y Prior: +3.7%

4:00 GE CPI- Bavaria M/M Prior: +0.6%

4:00 GE CPI- Bavaria Y/Y Prior: +3.3%

4:00 GE CPI- Brandenburg M/M Prior: +0.5%

4:00 GE CPI- Brandenburg Y/Y Prior: +3.2%

3:25 EU ECB's Papademos Speaks in Buenos Aires

7:00 US MBA Mortgage Applications W/E August 22 Prior: -1.5%

8:30 US Durable Goods Orders July Exp: +0.0% Prior: +0.8%

8:30 US Durables Ex Transportation July Exp: -0.7% Prior: +2.0%

8:30 CA Payroll Employment Earnings and Hours June

8:30 CA International Travel Account Q2 Prior: +3.1B

8:35 US Atlanta Fed's Lockhart to Speak on Inflation at Georgia State

10:00 US U.S. Metropolitan Area Employment and Unemployment July

10:35 US DOE U.S. Crude Oil Inventories W/E August 22 Exp: +1100K Prior: +9390K

10:35 US DOE U.S. Gasoline Inventories W/E August 22 Exp: -2450K Prior: -6202K

10:35 US DOE U.S. Distillate Inventory W/E August 22 Exp: +600K Prior: +481K

10:35 US DOE U.S. Refinery Utilization W/E August 22 Exp: +0.23% Prior: -0.20%

12:00 CA Bank of Canada to sell C$500M in 2041.12.01 2.00% real return bonds

12:00 US Chicago Federal Midwest Manufacturing Index August Prior -0.67

13:00 US Treasury to Sell $32B in 2-Year Notes

GE CPI- Saxony M/M Prior: +0.6%

GE CPI- Saxony Y/Y Prior: +3.6%

GE CPI- North Rhine-West M/M Prior: +0.6%

GE CPI- North Rhine-West Y/Y Prior: +3.3%

GE CPI- Baden Wuerttemberg M/M Prior: +0.6%

GE CPI- Baden Wuerttemberg Y/Y Prior: +3.3%

GE Consumer Price Index M/M August Preliminary Exp: -0.2% Prior: +0.6%

GE Consumer Price Index Y/Y August Preliminary Exp: +3.2% Prior: +3.3%

GE CPI- EU Harmonised M/M August Preliminary Exp: -0.2% Prior:+0.7%

GE CPI- EU Harmonised Y/Y August Preliminary Exp: +3.4% Prior:+3.5%

By Erik Kevin Franco and edited by Nancy Girgis