Notes/Observations
China services PMI hits 5-month high (11th straight month of expansion)
JGB yields move higher on reports that Japan Govt Pension Fund (size $1.1T and world largest) mulling lower allocation to domestic bonds
European Peripheral bond yield moved to 1-month with Spain Rajoy facing corruption allegations while Italian elections becoming a real horse race
Spain PM Rajoy and Germany Chancellor Merkel to meet in Berlin today, ahead of the EU Leader summit at the end of the week.
Economic Data
(CH) Swiss Q4 UBS Real Estate Bubble Index: 1.11 v 1.02 prior
(BR) Brazil Jan FIPE CPI Monthly: 1.2% v 1.1%e
(ES) Spain Jan Net Unemployment M/M: +132.1K v +150.0Ke
(TR) Turkey Jan Consumer Prices M/M: 1.7% v 1.1%e; Y/Y: 7.3% v 6.8%e; CPI Core Y/Y: 5.7% v 5.7%e
(TR) Turkey Jan Producer Prices M/M: -0.2% v -0.1% prior; Y/Y: 1.9% v 2.5% prior
(EU) ECB: €7M borrowed in overnight loan facility vs. €335.0M prior; €180.95B parked in deposit facility vs. €185.4B prior
(ZA) South Africa Jan Naamsa Vehicle Sales Y/Y: 14.1% v 1.8% prior
(EU) Euro Zone Feb Sentix Investor Confidence: -3.9 v -1.7e (18th straight negative reading)
(UK) Jan PMI Construction: 48.7 v 49.2e (4th straight contraction)
(EU) Euro Zone Dec PPI M/M: -0.2% v -0.2%e; Y/Y: 2.1% v 2.1%e
(DE) German Jan new car registrations 192K, -8.5% y/y - VDIK
Fixed Income:
(NO) Norway sold NOK3B vs. NOK3.0B in 10-month Bills; Yield 1.77%
(NL) Netherlands Debt Agency (DSTA) sold total €3.71B vs. €5.0B indicated in 3-month and 6-month bills
Sells €2.76B vs. €2.0-3.0B indicated in 3-month bills; Yield: 0.000% v -0.011% prior; Bid-to-cover: 1.64x v 2.1x prior
Sells €1.03B vs. €2.0B indicated in 6-month Bills; Avg Yield: +0.021% v -0.007% prior; Bid-to-cover:3.17x v 3.6x prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Equities
Indices: FTSE 100 -0.30% at 6,326, DAX -0.10% at 7,824, CAC-40 -0.20% at 3,766, IBEX-35 -0.50% at 8,191, FTSE MIB -1.5% at 17,059, SMI +0.24% at 7,438, S&P 500 Futures flat 1,507
European equity markets are mostly lower, as political concerns have weighed on the FTSE MIB in Italy. European banks are mostly lower, led by declines in Italian banks. Resource related firms are broadly lower, in line with the declines being seen for commodity prices. Looking ahead this week will be heavy, in terms of major European corporate earnings. Additionally, traders are expected to focus on central bank meetings (ECB and BoE to meet on Thursday) and data out of China (including monthly CPI and trade balance).
UK movers [Vodafone -1.5% (broker commentary), Stagecoach -1.2% (broker commentary); Salamader Energy +11% (oil find), Randgold +2% (Q4 results)]
Germany movers [SDF -2% (broker commentary), Linde -1% (broker commentary); Symrise +3% (broker commentary), E.ON +2% (union suspended planned strikes)]
France movers [Renault -1.5% (broker commentary), Thales -0.50% (probe related to 787 battery fires)]
Italy movers [Monte Paschi -5% (ongoing concerns related to derivatives transactions),Unicredit -2.5% (broker commentary)]
Switzerland movers [Swatch +2% (FY12 earnings, dividend) ; Meyer Burger -5% (capital raise concerns), Julius Baer -2% (FY results)]
The Netherlands movers [Imtech -35% (impairment charge and probe related to Polish unit)]