Economic Data
(DK) Denmark July Retail Sales M/M: -0.2% v +0.2%e; Y/Y: -2.6 v -1.0% prior
(HU) Hungary Jun Avg Gross Wages Y/Y: 4.1% v 5.2%e
(NO) Norway Jun AKU Unemployment Rate: 3.0% v 3.1%e
(ZA) South Africa July CPI (all items) M/M: 0.3% v 0.6%e; Y/Y: 4.9% v 5.2%e
(IC) Iceland Central Bank (Sedlabanki) leaves 7-day Lending Rate unchanged at 5.75%
(GR) Greece July YTD state budget balance at -€13.2B, primary balance at -€3.1B
Fixed Income:
(IN) India sold total INR120B vs. INR120B indicated in 3-month and 12-month Bills
(RU) Russia sold RUB8.5B vs. RUB15B indicated in 2019 OFZ Bond; Yield 7.80% vs. guidance of 7.75-7.80%
(SE) Sweden sold SEK3.5B vs. SEK3.5B indicated in 3.5% 2022 Bonds; Yield 1.5291% v 1.5843% prior; Bid-to-cover: 2.60 v 2.12x prior
(EU) ECB allotted $8.5B in 7-day USD Liquidity Tender at fixed 0.64% vs. $9.3B prior
(BE) Belgium Debt Agency priced 2020 retail bond at 2.1%
(DE) Germany sold €4.08B in 0.0% Sept 2014 Schatz; Avg Yield 0.00% v -0.06% prior; Bid-to-cover: 1.5x v 2.0x prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Notes/Observations
Japan July Trade Balance registers its 16th straight month of deficits; Exports slump to most regions with exports to Asia -9.0% y/y, exports to China -11.9% y/y, exports to Europe -25.1% y/y (biggest fall since Oct 2009); exports to US +4.7% y/y
BOE outgoing member Posen: ECB should intervene in Spain & Italian yields; Germany would be ill-advised to let euro breakup
Fed's Evans: Fed should provide more accommodation; rates should stay near zero until unemployment decline below 7%
LCH Clearnet: To accept Gold as collateral for margin
BHP cancels $30 billion Olympic Dam expansion
German 2-year Schatz auction results described as 'tad soggy'
Equities
Indices: FTSE 100 -1% at 5799, DAX -0.80% at 7033, CAC-40 -0.60% at 3490, IBEX-35 -0.90% at 7474, FTSE MIB -0.30% at 15,279, SMI -0.40% at 6489, S&P 500 Futures -0.20% at 1409.50
Following the lower open, European bourses have pared their losses, as Spanish 2-yr bond yields reversed the opening gains. The best performing index on the session has been the Italian FTSE MIB, while the FTSE 100 has lagged (various UK companies are trading ex-dividend). In the banking sector, French and Italian banks have outperformed (Spanish banks have lagged). UK-listed resource related firms are mostly lower, led by BHP [BLT.UK] and Fresnillo [FRES.UK]. In terms of upcoming event risks, traders will be focusing on the later today release of the US Fed's minutes. On Thursday, China and European PMI data will be released, in addition to final GDP data out of Germany.
Large miner BHP [BLT.UK] has traded lower by over 1%, despite reporting better than expected FY results. The company announced that it would cancel the planned expansion of its large Olympic Dam Copper project, citing the outlook for commodity prices. TT Electronics [TTG.UK] has lost over 15%, after the company made cautious remarks about its FY sales outlook. Engineering/consulting firm Spirax [SPX.UK] is lower by more than 6%, as the company reported a y/y decline in H1 profits. In Germany, Rhoen-Klinikum [RHK.DE] has gained over 2% on renewed speculation that Fresenius [FRE.DE] could make another bid for the company. German automakers have traded lower, as Chinese automaker Geely [175.HK] made cautious comments regarding its H1 outlook.
Shares of Danish wind power firm Vestas Wind Systems [VWS.DK] have moved between gains and losses, as the company reaffirmed its FY forecasts and announced additional job cuts. In Belgium, Delhaize Group's [DELB.BE] shares are higher by over 6%, after the company reported better than expected Q2 results. Heineken [HEIA.NL] is lower by over 4% on weaker than expected H1 results.