Economic Data
(RU) Russia Gold and Forex Reserve w/e Jun 29th: $512.9B v $513.1B prior
(UK) Jun Halifax House Prices M/M: +1.0% v -0.2%e; 3M/Y: -0.5% v -0.8%e
(NL) Netherlands June CPI M/M: -0.5% v -0.1% prior; Y/Y: 2.1 v 2.1% prior
(NL) Netherlands June CPI EU Harmonized M/M: -0.6% v -0.2% prior; Y/Y: 2.5% v 2.5% prior
(SE) Sweden May Service Production M/M: +1.9% v -2.1% prior; Y/Y: +2.3% v -0.4%e
(UK) June New Car Registrations Y/Y: 3.5% v 7.9% prior
(TW) Taiwan June Foreign Exchange Reserves: $391.2B v $389.3B prior
Fixed Income
(ES) Spain Debt Agency (Tesoro) sold €3.0B vs. €2.0-3.0B indicated range in 2015, 2016, and 2020 Bonds
Sold €1.24B in 4.00% July 2015 Bono; Avg Yield 5.086% v 5.457% prior; Bid-to-cover: 2.28x v 3.18x prior; Maximum Yield 5.197% v 5.510% prior, tail: 11.1bps v 5.3 bps prior
Sold €1.01B in 4.25% Oct 2016 Bono; Avg Yield 5.536% v 5.353% prior; Bid-to-cover: 2.56x v 2.56x prior; Max Yield 5.621% v 5.443% prior; tail 8.5 bps v 9.0 bps prior
Sold €747M in 5.85% Jan 2022 Bono; Avg yield: 6.430% v 6.044% prior; Bid-to-cover: 3.18x v 3.29x prior; Max Yield 6.505% v 6.121% prior; tail 7.5bps v 7.7 bps prior
(FR) France Debt Agency (ATF) sold total €7.83B vs. €7.0-8.0B indicated in 2019, 2022 and 2023 Bonds
Sold €1.75B in 3.75% Oct 2019 OAT; Avg Yield 2.02% v 2.48% prior; Bid-to-cover: 3.63x v 2.74x prior
Sold €4.671B in 3.00% Apr 2022 OAT; avg yield 2.53% v 2.46% prior; Bid-to-cover: 1.93x v 2.02x prior
Sold €1.405B in 4.25% Oct 2023 OAT; avg yield 2.70% v 3.50% prior; Bid-to-cover: 2.55x v 3.23x prior
(HU) Hungary Debt Agency (AKK) sold HUF55B in 12-Month Bills; Avg Yield 7.26% v 7.39% prior; Bid-to-cover:1.90 x v 2.15x prior
(HU) Hungary Debt Agency (AKK) sold HUF7.5B in Floating Rate 2015 Bonds at 95.54, bid-to-cover: 2.58x Debt Agency (AKK) to sell Bonds
(IE) Ireland Debt Agency (NTMA) sold €500M vs.€500M in 3-month Bills; Avg Yield 1.80%; Bid-to-cover: 2.8x
Notes/Observations
Australia posts its 5th consecutive monthly trade deficit.
Dealers note that China "Beige Book" private survey showing pick up not seen in official statistics.
Both BOE and ECB expected to adjust their monetary policies today.
Equities
FTSE 100 -0.3% at 5672, DAX -0.5% at 6546, CAC-40 -0.5% at 3255, IBEX-35 -0.8% at 7,1364 FTSE MIB -0.7% at 14,401, SMI -0.2% at 6182, S&P 500 Futures at 1366
Ahead of interest rate decisions from the BoE and ECB, European equity indices opened the session mixed. Spain's IBEX-35 has underperformed, as Spain sold 2015, 2016 and 2022 bonds. In the banking sector, German and French banks have outperformed, while Spanish banks have lagged their peers.
GKN [GKN.UK] is trading higher by over 10%, after the company disclosed that it would acquire Volvo Aero.
Barclays has moved between gains and losses, as Moody's cut the company's standalone credit outlook to Negative from Stable. Man Group [EMG.UK] continues to be weighed down by speculation that the firm could disclose a profit warning. Volkswagen [VOW3.DE] has gained over 4%, while Porsche [PAH3.DE] is higher by ~1.5% on the plan by Volkswagen to acquire the remaining 50.1% stake in Porsche which it does not currently own.
Praktiker [PRA.DE] is higher by ~4%, as the company reached an agreement with shareholders related to restructuring measures. Shares of Finmeccanica [FNC.IT] have risen by over 4%, while Ansaldo [STS.IT] is higher by ~3% on speculation that Siemens could bid up to €1.3B for Ansaldo Energia. Barry Callebaut [BARN.CH] has declined by over 2%, following the release of its 9-month sales report.