Notes/Observations
- China: HSBC PMI Manufacturing hits14-month high as it stays above the 50 level for the 2nd consecutive month (after 12 months of contraction); Shanghai Composite surges 4% over hope of new Govt plan on economy
- Japan Final Oct Industrial Production revised lower; Q4 Tankan survey falls to 11 quarter low
- Far East and European bourses put in mixed performances
- White House and Republican Aides: Obama and Boehner held frank discussions as Tsy Sec Geithner attended; meeting followed reports that Boehner was to head home for Christmas tomorrow
- Latest polls show the Japan LDP opposition heading for a landslide victory on Sunday
- S&P: Downgrades UK sovereign outlook to negative from stable while maintaining AAA rating; sees 50/50 chance of downgrade within 2 years
- Fitch maintains France AAA rating, outlook negative
- Major European advanced PMI readings improve from month-ago levels but mixed in terms of beating expectations
- (RU) Russia Narrow Money Supply w/e Dec 10th (RUB): 7.21T v 7.16T prior
- (IN) India Nov Wholesale Price Index (WPI) Y/Y: 7.2% v 7.6%e
- (EU) EU27 Nov New Car Registrations: -10.3% v -4.8% prior
- (FI) Finland Nov CPI M/M: -0.3% v +0.2%e; Y/Y: 2.2% v 2.5%e
- (FR) France Q3 Final Wages Q/Q: 0.4% v 0.4% prelim
- (FR) France Dec Advanced PMI Manufacturing: 44.6 v 44.9e; PMI Services:46.0 v 46.0e
- (FI) Finland Oct Current Account: -€40M v +€70M prior
- (HU) Hungary Oct Final Industrial Production M/M: -3.8% v -3.8% prelim; Y/Y: -3.8% v -3.8% prelim
- (ES) Spain Q3 House Prices ToT Homes Q/Q: -3.8% v -3.3% prior; Y/Y: -15.2% v -14.4% prior
- (ES) Spain Q3 Labour Costs Y/Y: -0.1% v -0.3% prior
- (EU) ECB: €1.4B borrowed in overnight loan facility vs. €1.4B prior; €204.4B parked in deposit facility vs. €195.1B prior
- (DE) Germany Dec Advanced PMI Manufacturing: 46.3 v 47.3e; PMI Services: 52.0 v 50.0e (first expansion in Services since April)
- (EU) Euro Zone Dec Advanced PMI Manufacturing: 46.3 v 46.6e; PMI Services: 47.8 v 47.0e; PMI Composite: 47.3 v 46.9e(AT) Austria Nov Consumer Price Index M/M: 0.1% v 0.2% prior; Y/Y: 2.8 v 2.8% prior
- (IT) Bank of Italy Oct. Public Finance Supplement: Central Govt Debt: €2.015T v €1.995T prior
- (ES) Spain Banks Nov Net ECB Borrowings: €340.8B v €341.6B prior (3rd straight decline)
- (EU) Euro zone Q3 Employment Q/Q: -0.2% v 0.0% prior; Y/Y: -0.7% v -0.7% prior
- (EU) Euro Zone Nov CPI M/M: -0.2% v -0.2%e; Y/Y: 2.2% v 2.2%e; Core CPI: 1.5% v 1.5%e
- (BR) Brazil Oct Economic Activity Index M/M: 0.4% v 0.3%e; Y/Y: 5.0% v 4.4%e
- (ZA) South Africa sold I/L 2025, 2028, 2050 Bonds
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Equities
Indices
- FTSE 100 -0.10% at 5,922
- DAX +0.20% at 7,597
- CAC-40 -0.10% at 3,640
- IBEX-35 +0.25% at 8,034
- FTSE MIB -0.10% at 15,858
- SMI -0.10% at 6,912
- S&P 500 Futures +0.25% at 1,415
European equity markets are currently mixed, despite the more than 4% rally seen for the Chinese Shanghai Composite index. In terms of fundamentals, euro zone manufacturing PMI data missed market expectations, while the services PMI surprised to the upside. In China, Dec manufacturing PMI expanded for the second straight month, following 12 months of contraction. Despite the Chinese data, European resource related firms are mixed. European banks are mostly lower, led by shares of Credit Agricole and Deutsche bank. In news related to the banking sector, in Nov Spanish banks cut their reliance on ECB funding for the third straight month, a similar trend has been seen with Italian banks. In terms of the peripheral corporate bond markets, as issuance conditions have shown improvement, Telecom Italia is marketing seven-year EUR-denominated bonds in the area of 295bps/midswaps. In Sept, the company marketed five-yr EUR denominated bonds near 375bps/midswaps.