Risk Appetite finds fresh legs in session; Italy bond auction results mixed
Economic Data
Fixed Income
Economic Data
- US Budget agreement optimism boosts risk appetite higher
- China Shanghai Composite at 4-year lows amid concerns that the new leadership will tolerate slower growth
- Japan Oct retail sales lower than expected
- Brazil Central Bank lefts its SELIC target rate unchanged at 7.25% as expected
- Moody's: Greek debt unsustainable even after deal; high odds of a default on private debt
- Fitch and Moody's said to believe UK sovereign rating vulnerable to downgrade
- Swiss and Sweden Q3 GDP data easily exceed analyst expectations
- German Nov Unemployment Change comes in better than expected but still registers 8th straight monthly rise
- Peripheral spreads continue to tighten; the 10-year Irish/German Gov't bond spread moves below 300bps for tightest level in 2 1/2 years; Both Austria and Belgium outright 10-year yields at fresh EMU record low
- Italy 2017 and 2022 bond auction results mixed with lowest yields since Q4 2010 but lower bid-to-cover ratios
- German vote on Greek package could take place on Friday, SPD opposition party said to vote in favor
- (ZA) South Africa Oct Private Sector Credit Y/Y: 8.4% v 9.4%e r; M3 Money Supply Y/Y: 5.7% v 7.1%e v 7.5% prior
- (CH) Swiss Q3 GDP Q/Q: 0.6% v 0.2%e; Y/Y: 1.4% v 0.9%e
- (DE) Germany Oct ILO Employment: 41.524M; Unemployment Rate: 5.4% v 5.4% prior
- (UK) Nov Nationwide House Prices M/M: 0.0% v 0.1%e; Y/Y: -1.2% v -1.0%e
- (ZA) South Africa Oct Electricity Consumption Y/Y: -3.9% v -2.6% prior; Electricity Production Y/Y: -1.9% v -0.7% prior
- (ES) Spain Sept Total Housing Permits M/M: +23.2% v -37.2% prior; Y/Y: -51.3% v -31.7% prior
- (DK) Denmark Oct Unemployment Rate: 4.8% v 4.9%e; Gross Unemployment Rate: 6.0% v 6.4%e
- (HK) Hong Kong Oct Retail Sales Value Y/Y: 4.0% v 6.7%e; Retail Sales Volume Y/Y: 3.6% v 6.0%e
- (SE) Sweden Q3 GDP Q/Q: 0.5% v 0.2%e; Y/Y: 0.7% v 0.5%e
- (SE) Sweden Oct Retail Sales M/M: -1.7% v -0.5%e; Y/Y: 1.2% v 2.5%e
- (DE) Germany Nov Unemployment Change: +5K v +16Ke (8th straight monthly rise); Unemployment Rate: 6.9% v 6.9%e
- (IT) Italy Nov Business Confidence: 88.5 v 88.0e; Economic Sentiment: 76.4 v 77.1 prior
- (NO) Norway Q3 Manufacturing Wage Index: 1.7% v 0.1% prior
- (BE) Belgium Nov CPI M/M: -0.1% v +0.2% prior; Y/Y: 2.3% v 2.8% prior
- (UK) Oct M4 Money Supply M/M: 0.2% v 0.2% prior; Y/Y: -3.2% v -3.7% prior; M4 Ex IOFCs 3M Annualized: 5.4% v 7.5% prior
- (ZA) South Africa Oct PPI M/M: +0.6% v -0.1%e; Y/Y: 5.2% v 4.7%e
- (EU) Eurozone Nov Business Climate Indicator: -1.19 v -1.60e; Consumer Confidence: -26.9 v -26.9e; Industrial Confidence: -15.1 v -17.1e; Economic Confidence: 85.7 v 84.5e; Services Confidence: -11.9 v -12.5e
- (PT) Portugal Nov Consumer Confidence: -59.0 v -55.3 prior; Economic Climate Indicator: -5.0 v -4.6 prior
- (BR) Brazil Nov FGV Inflation IGP-M M/M: 0.0% v -0.1%e; Y/Y: 7.0% v 6.9%e
Fixed Income
- (DK) Denmark sold total DKK11.9B in 3-month, 6-month and 9-month Bills at negative yield (7th consecutive time)
- (IT) Italy Debt Agency (Tesoro) sold total 5.98B vs.€6.0B indicated in 2017 and 2022 BTP Bonds
- Sold €3.0B vs. €3.0B indicated in 3.5% Nov 2017 BTP Bond; Avg Yield 3.23% v 3.800% prior; Bid-to-cover: 1.25x v 1.49x prior
- Sold €2.98B vs. €3.0B indicated in 5.5% Nov 2022 BTP Bond; Avg Yield 4.45% v 4.920% prior; Bid-to-cover: 1.18x 1.43x prior
- (HU) Hungary Debt Agency (AKK) sold total HUF50B vs.HUF45B indicated in 2015, 2017 and 2022 Bonds
Indices: FTSE 100 +0.90% at 5,853, DAX +0.80% at 7,399, CAC-40 +1.1% at 3,553, IBEX-35 +1.1% at 7,925, FTSE MIB +1.7% at 15,719, SMI +0.80% at 6,809, S&P 500 Futures +0.60% at 1,415
European equity markets are broadly higher, tracking yesterday gains in the US equity markets. The strength in the US markets came amid commentary from US President Obama, as he noted that he hoped to reach an agreement on the "fiscal cliff" before Christmas. Today's gains have been led by the Spanish IBEX-35 and Italian FTSE MIB, amid the sharp move lower in peripheral bond yields.
In Greece, the Athens Stock Exchange (ASE) has gained over 1%, following reports that Germany's SPD opposition party may vote in favor of the Greek aid package. European banks are broadly higher, led by gains in the Greek banking sector. Other outperformers include Banco Popular, BBVA, Commerzbank, Intesa and Natixis.
Looking ahead, traders are expected to focus on Q3 GDP and same store sales data out of the US.
- UK movers [Invensys +12% (sold rail assets); CPPGroup -20% (failed merger talks), Dixons -3.5% (weak Q3 results),Wood Group -3.5% (share placement), Phoenix IT -2% (H1 results declined), Kingfisher -1% (Q3 profits, sales down y/y)]
- France movers [EDF -3.5% (unfavorable French court ruling)]
- Germany movers [Automakers outperform overall DAX (China sees double digit growth for 2013 vehicle sales)]
- Spain movers [Banco Popular +5% (update on capital raise)]
- Switzerland movers [Zurich Insurance +1.5% (affirmed 203 targets)]
- Greece movers [Banks gain 4-7% (follows recent losses, more details related to debt buyback plan, Germany's SPD may support aid package)]
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.