Eurozone CPI came in higher than expected while Unemployment stays at record high levels
Economic Data
(IN) India Q2 GDP Y/Y: 5.5% v 5.2%e
(DE) Germany July Retail Sales M/M: -0.9% v +0.2%e; Y/Y: -1.0% v 0.1%e
(FI) Finland Jun Final Trade Balance: €39M v €55M prior
(UK) Aug Nationwide House Prices M/M: 1.3% v 0.1%e; Y/Y: -0.7% v -2.2%e
(HU) Hungary July Producer Prices M/M: -0.4% v -1.6% prior; Y/Y: 6.2% v 6.7%e
(HU) Hungary Jun Final Trade Balance: €773.1M v €761.7M prior
(ES) Spain July Adjusted Real Retail Sales Y/Y: -7.3% v -5.2% prior; Real Retail Sales Y/Y: -6.9% v -4.4% prior
(TR) Turkey July Trade Balance: -$7.9B v -$7.7Be
(TH) Thailand July Current Account: $107M v $730Me; Total Trade Account Balance: $0.4B v $1.6B prior; Overall Trade Balance: $515M v $519M prior
(TH) Thailand July Business Sentiment Index: 51.7 v 51.5 prior
(CZ) Czech July Money Supply Y/Y: 6.3% v 6.5% prior
(IT) Italy Q2 Unemployment Rate: 10.6% v 10.7%e
(IT) Italy July Preliminary Unemployment Rate: 10.7% v 10.9%e
(NO) Norway July Retail Sales Volume M/M: -0.1% v +0.4%e; Y/Y: 2.7% v 7.4% prior
(NO) Norway Aug Unemployment Rate: 2.6% v 2.6%e
(ES) Spain Jun Current Account: -€0.3B v -€0.8B prior
(RU) Russia Narrow Money Supply Narrow w/e Aug 27th (RUB): 7.18T v 7.23T prior
(HK) Hong Kong July Govt Monthly Budget Balance (HKD): -11.9B v -0.8B prior
(HK) Hong Kong July M3 Money Supply Y/Y: 5.0% v 6.1% prior; M2 Money Supply Y/Y: 5.0% v 6.2% prior; M1 Money Supply Y/Y: 5.9% v 7.2% prior
(GR) Greece Jun Retail Sales Volume Y/Y: % v -9.2% prior
(EU) Eurozone Aug CPI Estimate Y/Y: 2.6% v 2.5%e
(EU) Eurozone July Unemployment Rate: 11.3% v 11.3%e
(IT) Italy Aug Preliminary CPI (NIC incl. tobacco) M/M: 0.4% v 0.3%e; Y/Y: 3.2% v 3.1%e
(IT) Italy Aug Preliminary CPIEU Harmonized M/M: 0.2% v 0.3%e; Y/Y: 3.6 v 3.6%e
(BE) Belgium July Unemployment Rate: 7.2% v 7.2% prior
(IC) Iceland July Final Trade Balance (ISK): 2.4B v 3.5B prior
Fixed Income
(IN) India sold total INR150B vs. INR150B indicated in 2020, 2026, 2032 and 2041 bonds
Notes/Observations
German Chancellor Merkel asked Italy PM Monti & will ask Spain PM Rajoy to delay any bailout requests to calm tensions with Buba's Weidmann
German Bundesbank President Weidmann said to have considered resignation but has decided against for now
ECB's Nowotny: ECB likely to lower forecasts for 2012 and 2013; uncertainty increasing massively
Markets await policy hints from Fed Chairman Bernanke at Jackson Hole forum
Japan and Korea industrial data weaker than expected
Spain will not request bailout until terms are clear
Euro Zone Unemployment remains at record high level
Euro Zone CPI hotter than expected and above the 2.0% target ahead of next week ECB policy meeting
Equities
FTSE 100 +0.20% at 5732, DAX +0.50% at 6927, CAC-40 +0.60% at 3400, FTSE MIB +1.1% at 14,941, SMI +0.20% at 6393, S&P 500 Futures +0.40% at 1402
European equity indices are broadly higher, led by the Italian FTSE MIB, which has been supported by better than expected unemployment data out of Italy. Overall, equity indices have so far ignored the rise in Spanish bond yields as the focus of traders appears to be on the later today comments out of Fed Chairman Bernanke at the Jackson Hole conference (expected at around 10 AM EST).
Additionally, markets are expected to focus on the China official manufacturing PMI data for Aug due to be released tomorrow. According to the HSBC Aug flash manufacturing PMI data for China (released on Aug 22nd), activity hit a 9-month low of 47.8 and contracted for the 10th straight month.
In France, luxury retailer Hermes [RMS.FR] is trading higher, as the firm raised its FY sales growth forecast after issuing H1 results. ADP [ADR.FR] has lost over 3% after reporting H1 results. Iliad [ILD.FR] is higher by more than 4%, following the release of H1 results.
Italian bank, Banca Monte Paschi de Siena [BMPS.IT has risen by over 3%, amid reports that the Italian government's stake in the firm could exceed 9%.Germany airline Lufthansa [LHA.DE] has traded higher, despite the company having to cancel flights due to the strike action by its cabin crew union. Praktiker [PRA.DE] has gained over 12% on reports that the firm is seeking to enter into a new financing agreement.
Economic Data
(IN) India Q2 GDP Y/Y: 5.5% v 5.2%e
(DE) Germany July Retail Sales M/M: -0.9% v +0.2%e; Y/Y: -1.0% v 0.1%e
(FI) Finland Jun Final Trade Balance: €39M v €55M prior
(UK) Aug Nationwide House Prices M/M: 1.3% v 0.1%e; Y/Y: -0.7% v -2.2%e
(HU) Hungary July Producer Prices M/M: -0.4% v -1.6% prior; Y/Y: 6.2% v 6.7%e
(HU) Hungary Jun Final Trade Balance: €773.1M v €761.7M prior
(ES) Spain July Adjusted Real Retail Sales Y/Y: -7.3% v -5.2% prior; Real Retail Sales Y/Y: -6.9% v -4.4% prior
(TR) Turkey July Trade Balance: -$7.9B v -$7.7Be
(TH) Thailand July Current Account: $107M v $730Me; Total Trade Account Balance: $0.4B v $1.6B prior; Overall Trade Balance: $515M v $519M prior
(TH) Thailand July Business Sentiment Index: 51.7 v 51.5 prior
(CZ) Czech July Money Supply Y/Y: 6.3% v 6.5% prior
(IT) Italy Q2 Unemployment Rate: 10.6% v 10.7%e
(IT) Italy July Preliminary Unemployment Rate: 10.7% v 10.9%e
(NO) Norway July Retail Sales Volume M/M: -0.1% v +0.4%e; Y/Y: 2.7% v 7.4% prior
(NO) Norway Aug Unemployment Rate: 2.6% v 2.6%e
(ES) Spain Jun Current Account: -€0.3B v -€0.8B prior
(RU) Russia Narrow Money Supply Narrow w/e Aug 27th (RUB): 7.18T v 7.23T prior
(HK) Hong Kong July Govt Monthly Budget Balance (HKD): -11.9B v -0.8B prior
(HK) Hong Kong July M3 Money Supply Y/Y: 5.0% v 6.1% prior; M2 Money Supply Y/Y: 5.0% v 6.2% prior; M1 Money Supply Y/Y: 5.9% v 7.2% prior
(GR) Greece Jun Retail Sales Volume Y/Y: % v -9.2% prior
(EU) Eurozone Aug CPI Estimate Y/Y: 2.6% v 2.5%e
(EU) Eurozone July Unemployment Rate: 11.3% v 11.3%e
(IT) Italy Aug Preliminary CPI (NIC incl. tobacco) M/M: 0.4% v 0.3%e; Y/Y: 3.2% v 3.1%e
(IT) Italy Aug Preliminary CPIEU Harmonized M/M: 0.2% v 0.3%e; Y/Y: 3.6 v 3.6%e
(BE) Belgium July Unemployment Rate: 7.2% v 7.2% prior
(IC) Iceland July Final Trade Balance (ISK): 2.4B v 3.5B prior
Fixed Income
(IN) India sold total INR150B vs. INR150B indicated in 2020, 2026, 2032 and 2041 bonds
Notes/Observations
German Chancellor Merkel asked Italy PM Monti & will ask Spain PM Rajoy to delay any bailout requests to calm tensions with Buba's Weidmann
German Bundesbank President Weidmann said to have considered resignation but has decided against for now
ECB's Nowotny: ECB likely to lower forecasts for 2012 and 2013; uncertainty increasing massively
Markets await policy hints from Fed Chairman Bernanke at Jackson Hole forum
Japan and Korea industrial data weaker than expected
Spain will not request bailout until terms are clear
Euro Zone Unemployment remains at record high level
Euro Zone CPI hotter than expected and above the 2.0% target ahead of next week ECB policy meeting
Equities
FTSE 100 +0.20% at 5732, DAX +0.50% at 6927, CAC-40 +0.60% at 3400, FTSE MIB +1.1% at 14,941, SMI +0.20% at 6393, S&P 500 Futures +0.40% at 1402
European equity indices are broadly higher, led by the Italian FTSE MIB, which has been supported by better than expected unemployment data out of Italy. Overall, equity indices have so far ignored the rise in Spanish bond yields as the focus of traders appears to be on the later today comments out of Fed Chairman Bernanke at the Jackson Hole conference (expected at around 10 AM EST).
Additionally, markets are expected to focus on the China official manufacturing PMI data for Aug due to be released tomorrow. According to the HSBC Aug flash manufacturing PMI data for China (released on Aug 22nd), activity hit a 9-month low of 47.8 and contracted for the 10th straight month.
In France, luxury retailer Hermes [RMS.FR] is trading higher, as the firm raised its FY sales growth forecast after issuing H1 results. ADP [ADR.FR] has lost over 3% after reporting H1 results. Iliad [ILD.FR] is higher by more than 4%, following the release of H1 results.
Italian bank, Banca Monte Paschi de Siena [BMPS.IT has risen by over 3%, amid reports that the Italian government's stake in the firm could exceed 9%.Germany airline Lufthansa [LHA.DE] has traded higher, despite the company having to cancel flights due to the strike action by its cabin crew union. Praktiker [PRA.DE] has gained over 12% on reports that the firm is seeking to enter into a new financing agreement.