Economic Data
(RU) Russia Narrow Money Supply w/e July 30th (RUB): 7.16T v 7.25T prior
(IE) Ireland July NCB Sermices PMI: 49.1 v 49.7 prior
(CH) Swiss Q2 UBS Real Estate Bubble Index: 0.82 v 0.95 prior
(SE) Sweden July PMI Services: 54.8 v 47.4 prior
(CZ) Czech Jun Retail Sales Y/Y: -1.0% v -1.7%e
(TR) Turkey July Consumer Prices M/M: -0.2% v -0.2%e; Y/Y: 9,1% v 9.0%e; CPI Core Y/Y: 7.5% v 7.3% prior
(TR) Turkey July Producer Prices M/M: -0.3% v -1.5% prior; Y/Y: 6.1% v 6.4% prior
(ES) Spain July Services PMI: 43.7 v 42.9e; (13th month of contraction)
(IT) Italy July PMI Services: 43.0 v 43.5e
(FR) France July Final PMI Services: 50.0 v 50.2e
(DE) Germany July Final PMI Services: 50.3 v 49.7e
(EU) Euro Zone July Final PMI Services: 47.9 v 47.6e; PMI Composite: 46.5 v 46.4e
(NO) Norway Unemployment: 2.7% v 2.6%e
(UK) July PMI Services: 51.0 v 51.7e; lowest since Dec 2010
(EU) Euro Zone Jun Retail Sales M/M: +0.1% v -0.1%e; Y/Y: -1.2% v -1.9%e
Fixed Income:
(IN) India sold total INR150B vs. INR150B indicated in 2020, 2026, 2032 and 2041 bonds
(ZA) South Africa sold total ZAR800M in I/L 2025, 2038, and 2050 Bonds
Notes/Observations
Focus on key US jobs report
IMF: Failure of EU to tame crisis could cut US GDP by 2% and EU GDP by 5%
China PMI Services data mixed but remains expansionary
NIESR cuts UK 2012 and 2013 GDP forecasts
Moody's cuts Slovenia sovereign rating by three notches to Baa2
Euro Zone PMI Services come in mixed
Equities
FTSE 100 +1.1% at 5725, DAX +1.6% at 6710, CAC-40 +1.7% at 3285, IBEX-35 +1.9% at 6492, FTSE MIB +2.9% at 13,669, SMI +0.60% at 6443, S&P 500 Futures +0.70% at 1371
European equity indices have reversed the declines seen on yesterday's session as dealers have reassessed ECB head Draghi's comments related to open market operations. Today's gains have been led by the Spanish IBEX and Italian FTSE MIB. Amid the equity gains, the EuroStoxx 50 volatility index has moved to 2-week lows. In terms of the banking sector, Italian banks have outperformed, tracking the sharp declines in Italian bond yields. Intesa [ISP.IT] and Unicredit [UCG.IT] are due to report their Q2 results later today.
European markets have overall had a muted reaction to the July PMI services data, which was mostly below expectations. Looking ahead markets are expected to focus on the US monthly nonfarm payrolls data. Companies seen reporting results during the US morning include, Beazer Homes and Procter & Gamble.
Shares of RBS [RBS.UK] have advanced by over 3%, as the company reported higher than expected H1 core revenues. Additionally, RBS noted that its results were supported by lower non-core losses. Inmarsat [ISAT.UK] has gained over 7% on better than expected Q2 results. Airline company IAG [IAG.UK] is lower by over 2%, as the company cut its FY operating result forecast, amid challenges for the company's Spanish Iberia unit. Business services firm Rentokil [RTO.UK] has gained over 4%, after reporting Q2 results. In France, insurer Axa [CS.FR] is higher but underperforming the overall CAC-40 after reporting H1 results. The company noted that its property/casualty unit, offset the results in its asset management business.
Swiss flavor and fragrance manufacturer Givaudan [GIVN.CH] has declined by over 4%, as the company reported in line H1 results and a y/y decline in gross margins. German insurer Allianz [ALV.DE] has gained over 3% on better than expected Q2 results, supported by the asset management unit (includes PIMCO).Siemens is up over 3%, as the company approved a share buyback for up to €3B. Optical disc production company Singulus [SNG.DE] has lost over 6% on H1 results.