Focus on Eurogroup meeting on Greece
Economic Data
(CH) Swiss Oct Trade Balance (CHF): 2.8B v 1.9 B prior; Real Exports M/M: -16.5% v 2.9% prior; Real Imports M/M: -8.2% v 4.6% prior
(DE) Germany Oct Producer Prices M/M: 0.0% v 0.1%e; Y/Y: 1.5% v 1.6%e
(FI) Finland Oct Unemployment Rate: 6.9% v 7.3%e
(JP) Japan Oct Convenience Store Sales Y/Y: -2.1% v -1.6% prior
(HU) Hungary Sept Avg Gross Wages Y/Y: 3.7% v 4.4%e
(TW) Taiwan Oct Export Orders Y/Y: 3.2% v 0.2%e (2nd straight monthly rise)
(EU) ECB: €1.85B borrowed in overnight loan facility €1.8B prior; €240.5B parked in deposit facility vs. €215.9B prior
(TW) Taiwan Q3 Current Account Balance: $11.6B v $10.B prior
(NL) Netherlands Nov Consumer Confidence: -37 v -35e
(SE) Sweden Q3 Total Number of Employees Y/Y: 0.9% v 2.0% prior
(NO) Norway Q3 GDP Mainland Q/Q: 0.7% v 0.5%e; GDP Q/Q: -0.8% v -0.6%e
(ZA) South Africa Q4 BER Business Confidence: 46.0 v 47.0 prior
(GR) Greece Sept Credit Growth Y/Y: -3.5% v -3.5% prior
(FR) France Oct car orders +6% y/y (first rise since May)
Fixed Income
(ES) Spain Debt Agency (Tesoro) sold €4.93B vs.€3.5-4.5B indicated range in 12-Month and 18-Month Bills
Sold €4.2B in 12-month Bills; Avg Yield: 2.797% v 2.823% prior; Bid-to-cover: 2.10x v 2.71x prior; Max Yield 2.850% v 2.860% prior; Tail: 5.3bps v 3.7 bps bps prior
Sold €0.7B in 18-month Bills; Avg Yield 3.034% v 3.022% prior; Bid-to-cover: 5.70x v 3.04x prior; Max Yield 3.077% v 3.070% prior; Tail: 4.3bps v 4.8 bps prior
(CH) Switzerland sold CHF881M in 6-Month Bills; Avg Yield -0.178% v -0.158% prior
(EU) ECB allotted €75.4B vs. €75Be in 7-Day Main Refinancing Tender at fixed rate 0.75%
(HU) Hungary Debt Agency (AKK) sold HUF45B vs. HUF50B indicated in 3-Month Bills; Avg Yield 6.06% v 6.06% prior
(UK) DMO sold £4.5B in 1% 2017 Gilts; Avg Yield 0.787% (record low)v 0.802% prior; Bid-to-cover: 1.59x v 1.51x prior; tail 0.6bps v 0.6bps prior
Notes/Observations
Moody's becomes the second rating agency to cut France's AAA sovereign rating
BoJ leaves monetary policy unchanged (as expected)
RBA minutes: Further interest rate cuts may be appropriate in time
Eurogroup meeting today on Greece expected to achieve a political endorsement in principle' on unfreezing funds to Greece with monies to be distributed in early December
Spain sells more than indicated at its 12-month and 18-month bill auction
Equities
Indices: FTSE 100 -0.10% at 5,728, DAX +0.20% at 7,139, CAC-40 -0.10% at 3,434, IBEX-35 -0.25% at 7,743, FTSE MIB -0.50% at 15,236, SMI -0.50% at 6,603, S&P 500 Futures +0.10% at 1,383
European equity indices are mostly lower, following the sharp gains seen during Monday's session, as Moody's joined S&P in removing France's AAA sovereign rating. Italy's FTSE MIB has underperformed amid losses in the banking sector and declines in shares of Fiat. Ahead of today's Euro Group meeting on Greece, the Athens Stock Exchange (ASE) has moved between gains and losses, while Greece's 10-year bond yields have moved lower. European banks are trading mixed. Underperformers in the sector include Credit Suisse, Commerzbank, Deutsche Bank, Intesa, Natixis and Unicredit. Resource related companies are broadly lower, tracking the declines in commodity prices.
EasyJet [EZJ.UK] has gained over 4%, as the company disclosed its FY12 results and announced a planned increase in its dividend. Shares of Glencore [GLEN.UK] and Xstrata [XTA.UK] have moved higher, as Glencore's shareholders voted to approve the proposed merger between both companies. The deal still needs to be approved by Xstrata's shareholders and certain regulators. In Switzerland, shares of Credit Suisse [CSGN.CH] have moved lower by over 1.5%, after the firm announced plans to restructure its investment banking, asset management and private banking units.
Richemont [CFR.CH] and Swatch [UHR.CH] are higher after Swiss watch exports rebounded in Oct. Shares of German retailer Metro [MEO.DE] are higher by over 1%, as the firm's CEO said the company will probably not have to cut its FY dividend. In France, banks opened the session broadly lower following Moody's downgrade of France's sovereign rating, led by BNP and Natixis. Retailer Carrefour [CA.FR] has gained over 1%, after agreeing to sell a 60% stake in its Indonesia joint venture. EADS [EAD.FR] has lagged the overall CAC-40, amid renewed speculation that Germany may raise its stake in the firm, while France might reduce its stake.
FTSE 100 movers (Intercontinental Hotel +2.3%, IAG +2.1%, Prudential +1.9%, Burberry +1.7%, Xstrata +1.5%; Arm Holdings -2%, Meggitt -1.4%, Old Mutual -1.4%, Anglo American -1.3%, National Grid -1%)
CAC-40 movers (Alstom -2%, STMicrolectronics -2%, Bouygues -1.9%, ArcelorMittal -1.8%, Alcatel-Lucent -1.7%; Accor +3.2%, Pernod-Ricard +1.3%, Carrefour +1.3%, Vallourec +1.1%, Safran +1.1%)
DAX movers (Deutsche Post +1.2%, Volkswagen +1.1%, BASF +1%; Deutsche Bank -1.9%, E.ON -1.6%, K+S -1.3%, Commerzbank -1.1%)
IBEX-35 movers (Banco Popular -4%, Tecnicas -2%, Mapfre -1.9%, FCC -1.3%, Ferrovial -1.3%; Sacyr +1.1%)
FTSE MIB movers (Fiat -5.5%, Exor -2.9%, Mediaset -2.9%, Banca Monte Paschi -2.4%, Intesa -2.4%; Fiat Industrial +1.3%)
SMI movers (Credit Suisse -2.4%, Holcim -1.1%, UBS -1.1%; Richemont +1.5%)
Economic Data
(CH) Swiss Oct Trade Balance (CHF): 2.8B v 1.9 B prior; Real Exports M/M: -16.5% v 2.9% prior; Real Imports M/M: -8.2% v 4.6% prior
(DE) Germany Oct Producer Prices M/M: 0.0% v 0.1%e; Y/Y: 1.5% v 1.6%e
(FI) Finland Oct Unemployment Rate: 6.9% v 7.3%e
(JP) Japan Oct Convenience Store Sales Y/Y: -2.1% v -1.6% prior
(HU) Hungary Sept Avg Gross Wages Y/Y: 3.7% v 4.4%e
(TW) Taiwan Oct Export Orders Y/Y: 3.2% v 0.2%e (2nd straight monthly rise)
(EU) ECB: €1.85B borrowed in overnight loan facility €1.8B prior; €240.5B parked in deposit facility vs. €215.9B prior
(TW) Taiwan Q3 Current Account Balance: $11.6B v $10.B prior
(NL) Netherlands Nov Consumer Confidence: -37 v -35e
(SE) Sweden Q3 Total Number of Employees Y/Y: 0.9% v 2.0% prior
(NO) Norway Q3 GDP Mainland Q/Q: 0.7% v 0.5%e; GDP Q/Q: -0.8% v -0.6%e
(ZA) South Africa Q4 BER Business Confidence: 46.0 v 47.0 prior
(GR) Greece Sept Credit Growth Y/Y: -3.5% v -3.5% prior
(FR) France Oct car orders +6% y/y (first rise since May)
Fixed Income
(ES) Spain Debt Agency (Tesoro) sold €4.93B vs.€3.5-4.5B indicated range in 12-Month and 18-Month Bills
Sold €4.2B in 12-month Bills; Avg Yield: 2.797% v 2.823% prior; Bid-to-cover: 2.10x v 2.71x prior; Max Yield 2.850% v 2.860% prior; Tail: 5.3bps v 3.7 bps bps prior
Sold €0.7B in 18-month Bills; Avg Yield 3.034% v 3.022% prior; Bid-to-cover: 5.70x v 3.04x prior; Max Yield 3.077% v 3.070% prior; Tail: 4.3bps v 4.8 bps prior
(CH) Switzerland sold CHF881M in 6-Month Bills; Avg Yield -0.178% v -0.158% prior
(EU) ECB allotted €75.4B vs. €75Be in 7-Day Main Refinancing Tender at fixed rate 0.75%
(HU) Hungary Debt Agency (AKK) sold HUF45B vs. HUF50B indicated in 3-Month Bills; Avg Yield 6.06% v 6.06% prior
(UK) DMO sold £4.5B in 1% 2017 Gilts; Avg Yield 0.787% (record low)v 0.802% prior; Bid-to-cover: 1.59x v 1.51x prior; tail 0.6bps v 0.6bps prior
Notes/Observations
Moody's becomes the second rating agency to cut France's AAA sovereign rating
BoJ leaves monetary policy unchanged (as expected)
RBA minutes: Further interest rate cuts may be appropriate in time
Eurogroup meeting today on Greece expected to achieve a political endorsement in principle' on unfreezing funds to Greece with monies to be distributed in early December
Spain sells more than indicated at its 12-month and 18-month bill auction
Equities
Indices: FTSE 100 -0.10% at 5,728, DAX +0.20% at 7,139, CAC-40 -0.10% at 3,434, IBEX-35 -0.25% at 7,743, FTSE MIB -0.50% at 15,236, SMI -0.50% at 6,603, S&P 500 Futures +0.10% at 1,383
European equity indices are mostly lower, following the sharp gains seen during Monday's session, as Moody's joined S&P in removing France's AAA sovereign rating. Italy's FTSE MIB has underperformed amid losses in the banking sector and declines in shares of Fiat. Ahead of today's Euro Group meeting on Greece, the Athens Stock Exchange (ASE) has moved between gains and losses, while Greece's 10-year bond yields have moved lower. European banks are trading mixed. Underperformers in the sector include Credit Suisse, Commerzbank, Deutsche Bank, Intesa, Natixis and Unicredit. Resource related companies are broadly lower, tracking the declines in commodity prices.
EasyJet [EZJ.UK] has gained over 4%, as the company disclosed its FY12 results and announced a planned increase in its dividend. Shares of Glencore [GLEN.UK] and Xstrata [XTA.UK] have moved higher, as Glencore's shareholders voted to approve the proposed merger between both companies. The deal still needs to be approved by Xstrata's shareholders and certain regulators. In Switzerland, shares of Credit Suisse [CSGN.CH] have moved lower by over 1.5%, after the firm announced plans to restructure its investment banking, asset management and private banking units.
Richemont [CFR.CH] and Swatch [UHR.CH] are higher after Swiss watch exports rebounded in Oct. Shares of German retailer Metro [MEO.DE] are higher by over 1%, as the firm's CEO said the company will probably not have to cut its FY dividend. In France, banks opened the session broadly lower following Moody's downgrade of France's sovereign rating, led by BNP and Natixis. Retailer Carrefour [CA.FR] has gained over 1%, after agreeing to sell a 60% stake in its Indonesia joint venture. EADS [EAD.FR] has lagged the overall CAC-40, amid renewed speculation that Germany may raise its stake in the firm, while France might reduce its stake.
FTSE 100 movers (Intercontinental Hotel +2.3%, IAG +2.1%, Prudential +1.9%, Burberry +1.7%, Xstrata +1.5%; Arm Holdings -2%, Meggitt -1.4%, Old Mutual -1.4%, Anglo American -1.3%, National Grid -1%)
CAC-40 movers (Alstom -2%, STMicrolectronics -2%, Bouygues -1.9%, ArcelorMittal -1.8%, Alcatel-Lucent -1.7%; Accor +3.2%, Pernod-Ricard +1.3%, Carrefour +1.3%, Vallourec +1.1%, Safran +1.1%)
DAX movers (Deutsche Post +1.2%, Volkswagen +1.1%, BASF +1%; Deutsche Bank -1.9%, E.ON -1.6%, K+S -1.3%, Commerzbank -1.1%)
IBEX-35 movers (Banco Popular -4%, Tecnicas -2%, Mapfre -1.9%, FCC -1.3%, Ferrovial -1.3%; Sacyr +1.1%)
FTSE MIB movers (Fiat -5.5%, Exor -2.9%, Mediaset -2.9%, Banca Monte Paschi -2.4%, Intesa -2.4%; Fiat Industrial +1.3%)
SMI movers (Credit Suisse -2.4%, Holcim -1.1%, UBS -1.1%; Richemont +1.5%)