Economic Data
(IN) India Central Bank (RBI) raised both the Repo and Reverse Repo Rates by 25bps to 8.50% and 7.50% respectively (as expected)' Maintain the Cash Reserve Ratio unchanged at 6.00%
(GE) Germany Nov GfK Consumer Confidence: 5.3 v 5.1e
(FI) Finland Sept Unemployment Rate: 6.9% v 6.5%
(SZ) Swiss Sept UBS Consumption Indicator: 0.84 v 0.80 prior
(PH) Philippines Sept Budget Balance: -18.5B v +9.2B prior
(FR) France Oct Consumer Confidence:82 v 78e
(SP) Spain Sept Producer Prices M/M: 0.2% v 0.2%; Y/Y: 7.1% v 7.3%e
(AS) Austria Aug Industrial Production M/M: +1.1% v -0.7% prior; Y/Y: 5.6% v 5.4% prior
(SA) South Africa Aug Leading Indicator: 130.7 v 134.3 prior
(SW) Sweden Sept PPI M/M: -0.7% v -0.2%e; Y/Y: -0.2% v +0.3%e
(IT) Italy Aug Retail Sales M/M: 0.0% v 0.0%e; Y/Y: -0.3% v -2.3%e
(PD) Poland Sept Retail Sales M/M: 1.3% v 0.0%e; Y/Y: 11.4% v 10.0%
(PD) Poland Sept Unemployment Rate: 11.8% v 11.7%e
(TT) Taiwan Sept M2 Money Supply: 5.9% v 6.2%e
(HK) Hong Kong Sept Trade Balance (HKD): -40.0B v -37.2Be; Exports Y/Y: -3.0% v +6.5%e; Imports Y/Y: 2.3% v 11.7%e
(UK) Sept BBA Loans for House Purchase: 33.1K v 36.0Ke
(UK) Q2 Current Account: -£2.0B v -£9.0Be
(IT) Italy Oct Consumer Confidence: 92.9 v 97.6e
Fixed Income
(NV) Netherlands Debt Agency (DSTA) sold total €2.0B vs. €2.0-3.0B indicated range in 2015 and 2019 Bonds
Sold €1.0B in 2.75% Jan 2015 DSL; Avg Yield 1.404% v 1.906% prior
Sold €1.0B in 4.0% Jan 2019 DSL; Avg Yield 2.304% v 3.62% prior
(SP) Spain Debt Agency (Tesoro) sells total € vs. €2.5-3.5B indicated range in 3-Month and 6-Month Bills
Sold in 3-month Bills; Avg Yield % v 1.692% prior; Bid-to-cover: x v 2.47x prior; max yield % v 1.749% prior
Sold € in 6-month Bills; Avg Yield % v 2.665% prior; Bid-to-cover: x v 3.95x prior; max yield % v 2.730% prior
(SA) South Africa sold total ZAR2.1B vs. ZAR2.1B indicated in 2017 and 2020 Bonds
(EU) ECB allotted €197.4B vs. €196Be in 6-Day Main Refinancing Tender at fixed 1.50%
(HU) Hungary Debt Agency (AKK) sold HUF40B in 3-Month Bills; Avg Yield 6.05% v 6.03% prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Notes/Observations:
Markets appear to benefit on the whole from optimism that European leaders will reach a solution on the euro zone debt crisis
House of Commons rejected a call for EU referendum by 483 votes to 111 votes
Italy must deliver new austerity measures tomorrow as a precondition of further purchases of BTPs by the ECB. Italian cabinet failed to agree on measures before summit
Equities:
FTSE 100 +0.20% at 5561, DAX +0.40% at 6080, CAC 40 -0.30% at 3210, IBEX 35 -0.10% at 8951, FTSE MIB -0.25% at 16,193, SMI -0.50% at 5760
European equity indices opened the session lower on profit taking ahead of Wednesday's EU summit and mixed earnings. Among the specific sectors, banks are trading mixed after declining at the start of the session, while miners are mostly lower.
In individual names, UBS [UBSN.SZ] and Deutsche Bank [DBK.GE] are both higher after reporting better than expected quarterly earnings results. In the UK, BP [BP.UK] and BG Group [BG.UK] have both risen by more than 4%, following their respective quarterly earnings reports. Arm Holdings [ARM.UK] is slightly lower on the session after issuing Q3 results. In France, STM Microelectronics [STM.FR] has declined by over 6% after issuing results, while Air France [AF.FR] is lower by more than 2%, despite denying that it will issue a profit warning. In Germany, Heidelberger Druck [HDD.GE] has declined by over 4% after warning on its outlook. In Switzerland, Novartis [NOVN.SZ] has declined by over 2%, after quarterly core earnings missed analyst expectations.