ECB Must Delivery On Draghi's Pledge At Thursday's Policy Meeting

(ZA) South Africa Jun Private Sector Credit Y/Y: 8.7% v 8.3%e; M3 Money Supply Y/Y: 6.0% v 6.6%e

(ES) Spain May Total Housing Permits M/M: +12.8% v -20.7% prior; Total Housing Permits Y/Y: -32.6 v -32.4% prior

(ES) Spain July Preliminary Consumer Price Index Y/Y: 2.2% v 1.7%e; CPI EU Harmonized Y/Y: 2.2% v 1.8%e

(ES) Spain Q2 Preliminary GDP Q/Q: -0.4% v -0.4%e; Y/Y: -1.0% v -1.0%e

(AT) Austria Jun Producer Price Index M/M: -0.4% v -0.3% prior; Y/Y: 0.3 v 0.6% prior

(SE) Sweden Q2 Preliminary GDP Q/Q: 1.4% v 0.2%e; Y/Y: 2.3% v 0.6%e

(SE) Sweden May Non-Manual Workers Wages YY: 2.7% v 2.3% prior

(BE) Belgium July CPI M/M: +0.2 v -0.2% prior; Y/Y: 2.3 v 2.3% prior

(UK) Jun Net Consumer Credit: £0.6B v £0.4Be; Net Lending: -£0.4B v +£0.4Be

(UK) Jun Mortgage Approvals: 44.2K v 48.0Ke

(UK) Jun M4 Money Supply M/M: -1.6% v -0.1% prior; Y/Y: -5.2% v -4.1% prior (lowest reading on redcord); M4 Ex IOFCs 3M Annualized: 2.9% v 3.4% prior

(EU) Euro Zone July Business Climate Indicator: -1.27 v -1.09e; Consumer Confidence: -21.5 v -21.6e; Economic Confidence: 87.9 v 88.9e; Industrial Confidence: -15.0 v -14.0e; Services Confidence: -8.5 v -8.0e

(PT) Portugal July Consumer Confidence: -50.4 v -51.5 prior; Economic Climate: -4.4 v -4.4 prior

Fixed Income:

(IT) Italy Debt Agency (Tesoro) sold total €5,48B vs. €5.0-5.5B indicated range in 2015, 2017 and 2022 BTP

Sold €750M in 3.0% Nov 2015 BTPs; Avg Yield 4.49% v 3.77%; Bid-to-cover: 1.89x v 2.37x

Sold €2.244B vs. €2.25B indicated in 4.75% Jun 2017 BTP reopening; avg yield 5.29% v 5.84% prior; Bid-to-cover: 1.34x v 1.54x prior

Sold €2.485B vs. €2.50B indicated in 5.5% Sept 2022 BTP reopening; avg yield 5.96% v 6.19% prior; Bid-to-cover: 1.29x v 1.28x prior

SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM

Notes/Observations

ECB chief Draghi said trying to put together a game-changing response to the debt crisis consisting of EFSF bond buys, SMP bond purchases, more LTROs, rate cuts, and more

Markets say ECB must deliver the goods after its Draghi's pledged

German Chancellor Merkel and Italy PM Monti pledge to do everything to protect euro zone

Moody's: ECB cannot resolve Euro-Zone debt crisis

German Fin Min denies new aid program for Spain planned

Spain Q2 GDP in line with expectations; Country back in recession for the second time in three years

Italy bond auction result saw lower yield but soggy bid/cover ratio

Equities

Indices: FTSE 100 +0.50% at 5654, DAX +0.70% at 6737, CAC-40 +0.80% at 3306, IBEX-35 +1.6% at 6725, FTSE MIB +2.3% at 13,905, SMI +0.20% at 6377, S&P 500 Futures -0.30% at 1378

European equity indices are trading higher, following the mixed open, amid continued hopes for additional easing measures by global central banks (BoE, ECB and the US Fed are among the central banks due to meet this week). Today's gains have been led by the Spanish IBEX-35 and Italian FTSE MIB. Amid the overall equity gains in Europe, the Euro Stoxx 50 index has tested its 200-day moving avg, for the first time since early July. The index has not closed above the 200-day moving avg since early April. European banks are trading higher, with the outperformance being led by French and Italian banks. Resource-related stocks are also gaining, despite mixed commodity prices.

In London, shares of HSBC have swung between gains and losses as the company reported a better than expected H1 pretax profit figure. The company noted that its results were supported by its faster growing regions including Asia-Pacific and Latin America. Ryanair [RYA.UK] has declined by over 2%, after reporting weaker than expected Q1 net profits. Ryanair also made more cautious comments with regards to its FY traffic growth target. Consumer products firm Reckitt Benckiser [RB.UK] is lower by ~1%, as the company reported in line H1 sales and reaffirmed its FY forecast. Among the French companies which reported earnings, JC Decaux [DEC.FR] has traded lower by over 9%, as H1 net profits missed analyst expectations. Air France [AF.FR] has gained over 10% on better than expected H1 operating results. Miner Eramet [ERA.FR] has lost over 6%, as the company reported an over 55% decline in its H1 EBITDA. Industrial gases company Air Liquide [AI.FR] is lower by over 1%, after reporting weak than expected H1 net profits