EMU Unemployment Rate At Fresh Record High Of 11.2%Economic Data
(IN) India Central Bank (RBI) left Repo Rate unchanged at 8.00%; Cash Reserve Ratio unchanged at 4.75%
(DE) Germany June Retail Sales M/M: -0.1% v +0.5%e; Y/Y: 2.9% v 0.4%e
(DE) Germany June ILO Employment: 41.600M; Unemployment Rate: 5.4% v 5.5% prior
(FI) Finland May Trade Balance: -€10M v -€20M prelim
(CH) June UBS Consumption Indicator: 1.60 v 1.05 prior
(FR) France June Producer Prices M/M: -0.9% v -0.3%e; Y/Y: 1.3% v 2.1%e
(FR) France June Consumer Spending M/M: 0.1% v 0.2%e; Y/Y: 0.2% v 0.4%e
(DK) Denmark June Unemployment Rate: 4.6% v 4.5% prior; Gross Unemployment Rate: 6.3% v 6.2% prior
(HU) Hungary June Unemployment Rate: 10.9% v 11.1%e
(HU) Hungary June Producer Prices M/M: -1.6% v 0.8% prior; Y/Y: 6.9% v 8.3%e
(ES) Spain June Adjusted Real Retail Sales Y/Y: -5.2% v -7.7%e; Real Retail Sales Y/Y: -4.3% v -4.3% prior
(TR) Turkey June Trade Balance: -$7.2B v -$7.9Be
(TH) Thailand June Current Account: $600M v $270Me; Total Trade Account Balance: $1.6B v $0.6B prior; Overall Trade Balance: +$0.5B v -$2.8B prior
(TH) Thailand June Business Sentiment Index: 51.5 v 53.8 prior
(DE) Germany July Unemployment Change: +7K v +7Ke (fourth straight monthly rise); Unemployment Rate: 6.8% v 6.8%e
(CZ) Czech June Money Supply Y/Y: 6.5% v 6.1% prior
(IT) Italy June Preliminary Unemployment Rate: 10.8% v 10.3%e
(ES) Spain May Current Account: -€0.8B v -€1.7B prior
(HK) Hong Kong June M2 Money Supply Y/Y: 6.2% v 4.6% prior; M3 Money Supply Y/Y: 6.1% v 4.5% prior; M1 Money Supply Y/Y: 7.2% v 3.8% prior
(HK) Hong Kong June Govt Monthly Budget Balance (HKD): -0.8B v -9.4B prior
(BE) Belgium June Unemployment Rate: 7.2% v 7.1% prior
(EU) Eurozone July CPI Estimate Y/Y: 2.4% v 2.4%e
(EU) Eurozone June Unemployment Rate: 11.2% v 11.2%e (all-time EMU record reading)
(IT) Italy July Preliminary CPI (NIC incl. tobacco) M/M: 0.0% v 0.2%e; Y/Y: 3.0% v 3.2%e
(IT) Italy July Preliminary CPI EU Harmonized M/M: -1.6% v -1.7%e; Y/Y: 3.7% v 3.6%e
(GR) Greece May Retail Sales Value Y/Y: -10.3% v -13.5% prior; Retail Sales Volume: Y/Y: -9.2% v -11.6% prior
(ZA) South Africa Q2 Unemployment: 24.9% v 25.2% prior
(IT) Italy June PPI M/M: -0.1% v -0.2%e; Y/Y: 2.2% v 2.0%e
(EU) OECD June Inflation Y/Y: 2.0% v 2.1% prior
Fixed Income
(ZA) South Africa sold total ZAR2.1B vs. ZAR2.1B indicated in 2023, 2031 and 2048 bonds
(EU) ECB allotted €132.8B vs. €130Be in 7-Day Main Refinancing Tender at fixed 0.75%
(HU) Hungary Debt Agency (AKK) sold HUF vs. HUF45B indicated 3-Month Bills; Avg Yield 6/87% v 6.86% prior; Bid-to-cover: 1.46x v 1.79x prior
(BE) Belgium Debt Agency sold total €2.895B vs. €2.0-3.0B indicated range in 3-month and 6-month Bills
Sold €1.51B in 3-month Bills; Avg yield -0.003% v -0.016%; Bid-to-cover: 2.55x v 3.17x prior
Sold €1.385B in 6-month Bills; Avg yield +0.002% v 0.226% prior; Bid-to-cover: 2.39x v 2.25x prior
(EU) EFSF sold €1.494GB vs €1.5B indicated in 1.125% 2015 Bonds; Avg Yield 0.54% v 1.162% prior; Bid-to-cover: 3.7x
Notes/Observations
Markets continuing to focus on key central bank meetings later in the week.
Will China again precede BOE on a rate move?
India Central Bank (RBI) leaves rates unchanged on food price concerns.
Spain won't submit biennial budget by today as required by EU.
IMF: Global imbalances exacerbating global economic worries.
German Unemployment rises for the fourth straight month.
EMU Unemployment Rate at fresh record level of 11.2%.
Equities
Indices: FTSE 100 -0.10% at 5686, DAX +0.60% at 6811, CAC-40 +0.20% at 3326, IBEX-35 +1.4% at 6894, FTSE MIB +0.60% at 14,059, SMI +0.10% at 6406, S&P 500 Futures +0.24% at 1384
European equity indices opened the session mixed and as of the time of writing most of the indices are trading in positive territory, as traders continue to focus on global central bank meetings for later this week. The Spanish IBEX-35 as outperformed, while weakness in shares of BP has caused the FTSE 100 to lag. In terms of the banking sector, Spanish banks are performing the best on the session, while shares of Deutsche Bank, UBS, RBS and Barclays have underperformed. Notable companies seen reporting results during the US morning include Archer-Daniels Midland, Aetna, Coach, Goodyear Tire, Pfizer, Thomson Reuters, Tyco, US Steel and Valero.
UBS [UBSN.CH] is lower by over 4%, as the company reported weaker expected quarterly results. UBS reported an unexpected pretax loss for its investment banking unit. Also, the firm disclosed a CHF349M loss related to the Facebook IPO. BP [BP.UK] is lower by over 2.5% on weaker than expected Q2 earnings. The oil giant noted that its quarterly results were negatively impacted by factors including weak US oil and gas prices and lower net income from the TNK-BP joint venture. In the mining space Xstrata [XTA.UK] is trading slightly higher after issuing its H1 production update, while gold and silver miner Fresnillo [FRES.UK] has lost over 1% following the release of its H1 results. Engineering solutions firm Weir Group [WEIR.UK] is lower by over 3% after reporting H1 results.
Spanish Bank BBVA [BBVA.ES] has traded flat, following the release of Q2 results. In Germany, chip maker Infineon [IFX.DE] has gained over 4%, as the company reported better than expected quarterly operating profits and sales. Deutsche Bank [DBK.DE] has lost over 1% after reporting its final Q2 results, while Commerzbank [CBK.DE] has traded flat after providing its preliminary Q2 results. Bayer [BAYN.DE] is trading up by more than 2.5%, after the company announced record quarterly sales and raised its FY forecast.
Large retailer Metro [MEO.DE] is higher by over 2% on better than expected Q2 operating results. In other German movers, Heidelberg Cement [HEI.DE] is lower by over 1% (issued Q2 results), while SGL Carbon [SGL.DE] has lost over 2.5% (lowered guidance for BA CFC business). French utility EDF [EDF.FR] and defense/aerospace name [SAF.FR] are trading slightly higher following the release of their respective H1 earnings reports. In Belgium, AB InBev [ABI.DE] is lower by over 3%, as the company reported weaker than expected Q2 EBITDA and sales.