Economic Data
(FR) France July Consumer Price Index M/M: -0.4% v -0.4%e; Y/Y: 1.9% v 2.0%e; CPI Ex Tobacco Index: 124.22 v 124.20e
(FR) France July CPI EU Harmonized M/M: -0.5% v -0.5%e; Y/Y: 2.2% v 2.3%e
(FR) France Q2 Preliminary Gross Domestic Product Q/Q: 0.0% v -0.1%e; Y/Y: 0.3% v 0.2%e
(FI) Finland July CPI M/M: -0.2% v +0.1% prior; Y/Y: 2.9% v 2.8% prior
(FI) Finland Jun GDP Indicator WD: -0.7% v +0.3% prior
(FI) Finland Jun Final Retail Sales Volume Y/Y: 2.3% v 2.4% prior
(DE) Germany Q2 Preliminary GDP Q/Q: 0.3% v 0.2%e; Y/Y: 0.5% v 0.9%e; GDP wda Y/Y: 1.0% v 1.1%e
(IN) India July Monthly Wholesale Prices (WPI) Y/Y: 6.9% v 7.2%e (2 1/2 year low)
(FR) France Q2 Preliminary Non-Farm Payrolls Q/Q: -0.1% v -0.1%e; Wages Q/Q: 0.5% v 0.9% prior
(AT) Austria Q2 GDP Q/Q: 0.2% v 0.5% prior; Y/Y: 0.2 v 2.0% prior
(CZ) Czech Q2 Preliminary GDP Q/Q: -0.2% v -0.2%e; Y/Y: -1.2% v -1.1%e
(HU) Hungary Q2 Preliminary GDP Q/Q: -0.2% v -0.4%e; Y/Y: -1.2% v -1.3%e
(HU) Hungary July Consumer Prices M/M: -0.1% v -0.2%e; Y/Y: 5.8% v 5.6%e
(ES) Spain July Consumer Price Index M/M: -0.2% v -0.2%e; Y/Y: 2.2% v 2.2%e
(ES) Spain July CPI EU Harmonized M/M: -0.9% v -0.8%e; Y/Y: 2.2% v 2.2%e
(ES) Spain July CPI Core M/M: -0.7% v 0.0% prior; Y/Y: 1.4% v 1.3%e
(CH) Swiss July Producer & Import Prices M/M: -0.3% v -0.2%e; Y/Y: -1.8% v -1.7%e
(NL) Netherlands Q2 Preliminary GDP Q/Q: +0.2% v -0.3%e; Y/Y: -0.5% v -1.2%e
(SE) Sweden Jun Industrial Production M/M: +0.4% v -1.0%e; Y/Y: +1.1% v -1.1%e
(SE) Sweden Jun Industrial Orders M/M: -0.2% v 4.4% prior; Y/Y: -1.9% v -3.5% prior
(SE) Sweden July CPI Headline Rate M/M: -0.4% v -0.3%e; Y/Y: 0.7% v 0.8%e; CPI Level: v 313.11e
(SE) Sweden July CPI Underlying Rate (CPIF) M/M: -0.4% v -0.3%e; Y/Y: 0.8% v 0.8%e
(FR) France July SA Real Retail Sales M/M: -0.2%; Y/Y: +0.3% - Bank of France survey
(ES) Spanish banks July gross borrowing from ECB at €402.2B v €365B m/m
(UK) Jun ONS House Price Y/Y: 2.3% v 1.5%e
(UK) July CPI M/M: +0.1% v -0.1%e; Y/Y: 2.6% v 2.3%e; Core CPI Y/Y: 2.3% v 2.1%e
(UK) July RPI M/M: +0.1% v -0.2%e; Y/Y: 3.2% v 2.8%e; RPI Ex Mortgage Interest Payments Y/Y: 3.2% v 2.9%e; Retail Price Index: 242.1 v 241.4e
(EU) Euro Zone Q2 Advanced GDP Q/Q: -0.2% v -0.2%e; Y/Y: -0.4% v -0.4%e
(EU) Euro Zone Jun Industrial Production M/M: -2.1% v -2.1%e; Y/Y: -2.1% v -2.1%e
(DE) Germany Aug ZEW Economic Sentiment Survey: -25.5 v -19.3e; Current Situation Survey: 18.2 v 17.5e
(EU) Euro Zone Aug ZEW Economic Sentiment Survey: -21.2 v -22.3 prior
(PT) Portugal Q2 Preliminary GDP Q/Q: -1.2% v -0.7%e; Y/Y: -3.3% v -3.0%e
Fixed Income:
(ZA) South Africa sold total ZAR2.1B vs. ZAR2.1B indicated in 2023, 2031 and 2048 bonds
(CH) Switzerland sold 3-Month Bills; Avg Yield: -0.553% v -0.593% prior
(EU) ECB allotted €131.0B vs. €130Be in 7-Day Main Refinancing Tender at fixed 0.75%
(GR) Greece Debt Agency (PDMA) sold €4.062B vs. €3.125B indicated in 13-week Bills to cover bond maturity; Avg Yield 4.43% v 4.31% prior; Bid-to-cover: 1.36x v 2.19x
(HU) Hungary Debt Agency (AKK) sold HUF45B vs. HUF45B indicated in 3-Month Bills; Avg Yield 6.87% v 6.85% prior; Bid-to-cover: 1.43x v 1.88x prior
(BE) Belgium Debt Agency sold total €2.751B vs. €2.5-3.0B indicated rabge in 3-month and 12-month Bills
Sold €1.50B vs. €1.6B indicated in 3-month Bills; Avg yield -0.012% v -0.003% prior; Bid-to-cover: x v 2.55x prior
Sold €1.601B vs. €1.6B indicated in 12-month Bills; Avg yield 0.093% v 0.040%prior; Bid-to-cover: x v 1.99x prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Notes/Observations
BOJ minutes: Reiterates view that it will pursue powerful easing to achieve 1% inflation target with several members stating that the central bank should stand ready to take appropriate action
German Constitutional Court reaffirmed the ruling date of Sept 12th for ESM and Fiscal pact
Numerous European QoQ GDP readings beat expectations
German ZEW Economic Sentiment Survey worse than expected
Greece sell over €4B to cover upcoming bond maturity
Equities
Indices: FTSE 100 +0.60% at 5864, DAX +0.90% at 6973, CAC-40 +0.60% at 3447, IBEX-35 +0.90% at 7134, FTSE MIB +0.60% at 14,619, SMI +0.50% at 6496, S&P 500 Futures +0.30% at 1406.25
European equity indices opened the session higher, supported by gains in Asian stocks and better than expected quarterly GDP data out of France and Germany. Traders have paid less attention to ZEW data out of Germany, which missed analyst market views, as the expectations index hit the lowest level since Dec 2011, amid 4 straight declines. Europeans banks are trading higher led by gains in Italian and Spanish financials. Resource-related firms are mixed, despite the gains being seen for commodity prices.
In Germany, TUI AG [TUI1.DE] has gained over 4% on better than expected Q3 results. Merck KGaA [MRK.DE] is higher by more than 3%, as the company reported better than expected results and raised its FY forecast. Merck said its quarterly results were driven by positive fx effects, stronger margins and sales growth at the Serono and performance materials units. Pharmaceutical retailer Celesio [CLS1.DE] has gained over 3% following the release of Q2 results. Sky Deutschland's [SKYD.DE] shares have advanced by more than 2%, as the company confirmed market speculation by reporting better than expected quarterly results. Utility RWE [RWE.DE] is lower on the session, as the company reported weaker than expected H1 revenues and in line recurrent profits. In other German movers, Salzgitter [SZG.DE] is higher by over 1% (issued Q2 results, reaffirmed FY forecast), copper name Aurubis [NDA.DE] has gained over 2% (issued Q3 results) and shares of Hochtief [HOT.DE] are lower by more than 1% (reported H1 results). UK listed United Utilities [UU.UK] is higher by over 2% on takeover speculation. Irish construction materials firm CRH [CRH.UK] is lower by over 5%, following the release of its H1 results. Shares of Standard Life [SL.UK] are higher by over 3%, as the company reported H1 results and raised its dividend by 6.5%.