Negative Sentiment Maintains Footing Ahead of IMF Global Economic Update

(PH) Philippines May Overseas Workers Remittances: $1.8B v $1.7B prior

(IN) India June Wholesale Prices (WPI): 7.3% v 7.6%e v 7.6% prior

(DK) Denmark June Wholesale Prices M/M: -0.7% v -0.8% prior; Y/Y: 1.2% v 2.0% prior

(TR) Turkey June Consumer Confidence: 91.8 v 92.1 prior

(TR) Turkey April Unemployment Rate: 9.0% v 9.9% prior

(CH) Swiss Q1 Industrial Production Y/Y: 1.4% v 0.0%e

(AT) Austria June Consumer Price Index M/M: +0.1 v -0.1% prior; Y/Y: 2.2 v 2.1% prior

(IT) Italy May Total Trade Balance: +€1.0B v -€200M prior; Trade Balance EU: €691M v €704M prior

(NO) Norway June Trade Balance (NOK): 29.5B v 35.5B prior

(IT) Bank of Italy (BOI) May General Govt Debt: €1.966T v €1.949T prior - Public Finance Supplement

(EU) Eurozone Jun CPI M/M: -0.1% v 0.0%e; Y/Y: 2.4% v 2.4%e; CPI Core Y/Y: 1.6% v 1.6%e

(EU) Eurozone May Trade Balance Seasonally Adj: €6.3B v €5.0Be; Overall Trade Balance: €6.9B v €4.0Be

Fixed income
(NL) Netherlands Debt Agency (DSTA)sold total €2.38B vs. €2.0-4.0B indicated range in 3-month and 6-month Bills

Sold €1.25B vs. €2.0 indicated in 3-month Bills; Yield -0.041% v -0.013%prior; Bid-to-cover: 3.20x v 4.44x prior

Sold €1.13B vs. €2.0 indicated in 6-month Bills; Yield -0.029% v 0.019% prior; Bid-to-cover: 3.19x v 2.65x prior

Notes/Observations
China Premier Wen: Economic rebound not yet stable; Hardship may continue for a period of time.

EU as fragmented as ever ahead of Friday's Finance Minister meeting. ECB now advocates losses on holders of senior bonds while Ecofin disagrees. German Chancellor Merkel says liability not yet decided.

German Constitutional Court to announce ESM and Fiscal Compact decision on Sept 12th.

Equities
Indices: FTSE 100 -0.25% at 5651, DAX -0.25% at 6540, CAC-40 -0.40% at 3169, IBEX-35 -0.60% at 6622, FTSE MIB -0.30% at 13,672, SMI +0.10% at 6186, S&P 500 Futures -0.30% at 1348

European equity indices opened the session broadly lower, led by losses in Spain. Banks have traded mixed, as the credit default swaps (CDS) of some Spanish banks have moved wider, as the ECB declined to comment on reports that it had called for losses for senior bondholders of the weakest banks in Spain. Laggards in the banking sector include Barclays and Santander. Mining shares are broadly weaker, tracking the declines in commodity prices and Chinese equities. Looking ahead, US bank Citigroup is due to report quarterly earnings later today.

In London shares of G4S [GFS.UK] are lower by over 7% as the company said it was facing delays in relation to an Olympic security contract. Sage Group [SGE.UK] has lost over 1% as the company made cautious comments about Europe in its trading update. Glaxo [GSK.UK]] has traded slightly higher, amid speculation that the firm could raise its hostile bid for Human Genome Sciences [HGSI]. Heidelberger Druck [HDD.DE] is higher by over 1%, after the company reported its preliminary sales and orders figures for Q1. Dutch financial company SNS Reaal [SR.NL] has traded lower by over 3%, after the company's shares dropped over 15% on Friday's session. PostNL [PNL.NL] is lower by more than 4% on concerns that the company could have to delay its 2012 dividend if the takeover of TNT Express faces significant delays.