Risk-on sentiment prevails following selection of an Italian President and the G20's lack of criticism over Japan's bold easing.
Notes/Observations
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Equities
FTSE 100 +0.80% at 6,339, DAX +0.70% at 7,515, CAC-40 +0.50% at 3,670, IBEX-35 +1.1% at 8,005, FTSE MIB +2.3% at 16,116, SMI +0.70% at 7,674, S&P 500 Futures +0.60% at 1,556
Equity markets in European are broadly higher, led by Italy's FTSE MIB, which has outperformed after Napolitano's presidential term was extended. In terms of corporate earnings for Europe, Philips has declined, after reporting weaker than expected quarterly sales. Resource-related firms are trading mixed, amid the declines being seen for copper prices. Italian banks have outperformed among the European financials, tracking the gains being seen for Italy's sovereign bond prices. US companies due to report earnings later today include Caterpillar and Haliburton.
Notes/Observations
- Fitch become the second major rating agency to cut the UK sovereign AAA rating by a notch
- G20 summit highlight was lack of criticism that Japan received regarding its monetary policy; pave the way for USD/JPY to test parity (100)l Nikkei225 closes at fresh five-year high
- China PBoC Gov Zhou: country would sacrifice near-term growth in order to restructure the economy.
- Japan's big life insurers begin to publicly disclose their investment plans for the current FY
- Italy delegates re-elect 87-year old Napolitano to a second seven-year term; Moves towards ending political paralysis should be made within days. A move to form a government is likely to occur later this week
- Fed Chairman Bernanke will miss this year's Jackson Hole Fed event in Aug due to a personal scheduling conflict; his absence will result in a Fed chairman not attending the event for the first time in 25 years.
- Sweden Central bank has one of it most dovish members (Svensson) resign, effective may 20th)
- ECB members (Weidmann, Asmussen, Nowotny, Knot, Bonnici and Constancio) very chatty on low interest rates and hinting that more cuts could come if growth outlook deteriorated
- (JP) Japan Mar Supermarket Sales Y/Y: +1.7% v -5.5% prior
- (DK) Denmark Mar Retail Sales M/M: -0.5% v -0.1%e; Y/Y: -4.4 v -3.9% prior
- (DK) Denmark Apr Consumer Confidence Indicator: -2.8v -1.0e
- (CH) Swiss Mar M3 Money Supply Y/Y: 9.9% v 9.8% prior
- (JP) Japan Mar Convenience Store Sales Y/Y: -0.4 v -4.7% prior
- (EU) ECB: €51M borrowed in overnight loan facility vs. €0.0M prior; €105.6B parked in deposit facility vs. €115.1B prior
- (NL) Netherlands Mar House Price Index M/M: 0.1% v 1.2% prior; Y/Y: -7.0% v -8.3% prior
- (GR) Greece Feb Current Account: -€716M v -€222M prior
- (TW) Taiwan Mar Export Orders Y/Y: -6.6% v +1.8%e
- (HK) Hong Kong Mar CPI Composite Index Y/Y: 3.6% v 3.7%e
- (EU) Euro Zone 2012 Govt Debt/GDP Ratio: 90.6% v 87.3% prior
- (EU) EFSF to sell 1.5% Jan 2020 bond
- (NO) Norway sold NOK5.0B in Mar 2014 Bills; Yield: 1.55%
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Equities
FTSE 100 +0.80% at 6,339, DAX +0.70% at 7,515, CAC-40 +0.50% at 3,670, IBEX-35 +1.1% at 8,005, FTSE MIB +2.3% at 16,116, SMI +0.70% at 7,674, S&P 500 Futures +0.60% at 1,556
Equity markets in European are broadly higher, led by Italy's FTSE MIB, which has outperformed after Napolitano's presidential term was extended. In terms of corporate earnings for Europe, Philips has declined, after reporting weaker than expected quarterly sales. Resource-related firms are trading mixed, amid the declines being seen for copper prices. Italian banks have outperformed among the European financials, tracking the gains being seen for Italy's sovereign bond prices. US companies due to report earnings later today include Caterpillar and Haliburton.
- UK movers [Betfair +3% (rejected takeover bid); Spirent Communications -4.5% (cautious Q1 comments)]
- Germany movers [SMA Solar +11% (M&A in sector), Aurubis +3% (broker commentary), ThyssenKrupp +2.5% (interest in US plants), SGL Carbon +2.5% (M&A speculation)]
- France movers [Natixis +3.5% (broker commentary), Accor +2.3% (broker commentary), Suez Environmental +1% (Q1 EBITDA above ests, reaffirmed forecast), Hermes +0.70% (Q1 sales above ests), EADS +0.70% (broker commentary)]
- Italy movers [Italian financials have outperformed on the extended term for Napolitano as President, decline in sovereign bond yields]
- The Netherlands movers [Philips -2% (Q1 sales below ests)]
- Belgium movers [Delhaize +8.5% (Q1 profits above ests)]