Economic Data
(DE) Germany July Wholesale Price Index M/M: +0.3 v -1.1% prior; Y/Y: 2.0 v 1.1% prior
(FR) France Jun Current Account: -€4.9B v -€4.1Be
(TR) Turkey Jun Current Account: -$4.2B v -$4.3Be
(NL) Netherlands Jun Retail Sales Y/Y : 1.0% v 2.5%e
(CZ) Czech Jun Current Account Monthly (CZK) -9.1B v -12.0Be
(NO) Norway Jun Retail Sales Volume M/M: -1.1% v -0.5%e; Y/Y: 7.4% v 4.1%e
(IT) Italy Jun General Government Debt: €1.973T (record high) v €1.9663T prior
(RU) Russia July Budget Level (RUB): 282.6B v 247.4B prior
(GR) Greece Q2 Advanced GDP: -6.2% v -7.0%e
Fixed Income
(IT) Italy Debt Agency (Tesoro) sold €8.0B vs. €8.0B indicated in 12-month Bills; Avg Yield 2.767% v 2.697% prior; Bid-to-cover: 1.69x v 1.55x prior
(NO) Norway sold NOK3.0B vs. NOK3.0B indicated in 4.5% 2019 bonds; Yield 1.67%
(DE) Germany sold €3.77B €4.0B in 6-month BuBills; Avg Yield -0.499% (record low) v -0.0344% prior; Bid-to-cover: 1.3x v 1.7x prior
Notes/Observations
Presidential Candidate Romney selects Wyoming Rep Paul Ryan.
Japan Prelim Q2 GDP comes in below expectations.
Italy Fin Min Grilli: Italy will not meet deficit goals due to weaker growth, but plans no further budget cuts.
CITIC Securities official: Have not encountered huge overseas losses.
G20 officials said to be planning to hold a conference call later in Augyust to discuss the rise in global food prices.
Equities
Indices: FTSE 100 flat at 5846, DAX +0.40% at 6975, CAC-40 +0.20% at 3441, IBEX-35 +0.20% at 7059, FTSE MIB +0.50% at 14,626, SMI +0.10% at 6487, S&P 500 Futures -0.10% at 1401
European equity indices are trading mixed, amid the losses seen in Asia, as the Shanghai Composite lost 1.5% after policy makers failed to announce any new easing measures over the weekend. Also, global growth concerns are at the forefront, following weaker than expected GDP data out of Japan and ahead of eurozone GDP data due later this week. In Greece, Q2 GDP figures surprised to the upside.
Italy's FTSE MIB has so far performed the best on the session and the Spain's IBEX-35 has underperformed, as Spain's 2-year yields have moved higher. European banks are mixed. Outperformers in the sector include Italian banks, while laggards include Spanish banks and Julius Baer. Resource related firms are trading lower, tracking the declines in copper prices.
In UK equity movers, staffing firm Michael Page [MPI.UK] has traded slightly lower as the company reported a y/y decline in its H1 pretax profits. Energy services company Petrofac [PFC.UK] has declined by over 5% as the company noted that its backlog declined in the first half of the year. The company also noted that it had seen delays in certain contract tender processes over the past few months. In Germany, shares of Solarworld [SWV.DE] have lost over 10%, as the company cut its FY forecast.
Sky Deutscheland [SKYD.DE] has gained over 3% on press speculation that the firm's Q2 operating results (expected on Aug 14th) may exceed analyst expectations. Germany automakers are broadly lower, as a FT article noted that short-selling of European automakers' shares is near a 2-year high. Swiss private bank Julius Baer [BAER.CH] is lower by over 3% after confirming that it acquired Merrill Lynch's international wealth management operations. The deal has a valuation of about CHF860M and as part of the transaction, Julius Baer announced a rights offering equal to ~CHF750M.
(DE) Germany July Wholesale Price Index M/M: +0.3 v -1.1% prior; Y/Y: 2.0 v 1.1% prior
(FR) France Jun Current Account: -€4.9B v -€4.1Be
(TR) Turkey Jun Current Account: -$4.2B v -$4.3Be
(NL) Netherlands Jun Retail Sales Y/Y : 1.0% v 2.5%e
(CZ) Czech Jun Current Account Monthly (CZK) -9.1B v -12.0Be
(NO) Norway Jun Retail Sales Volume M/M: -1.1% v -0.5%e; Y/Y: 7.4% v 4.1%e
(IT) Italy Jun General Government Debt: €1.973T (record high) v €1.9663T prior
(RU) Russia July Budget Level (RUB): 282.6B v 247.4B prior
(GR) Greece Q2 Advanced GDP: -6.2% v -7.0%e
Fixed Income
(IT) Italy Debt Agency (Tesoro) sold €8.0B vs. €8.0B indicated in 12-month Bills; Avg Yield 2.767% v 2.697% prior; Bid-to-cover: 1.69x v 1.55x prior
(NO) Norway sold NOK3.0B vs. NOK3.0B indicated in 4.5% 2019 bonds; Yield 1.67%
(DE) Germany sold €3.77B €4.0B in 6-month BuBills; Avg Yield -0.499% (record low) v -0.0344% prior; Bid-to-cover: 1.3x v 1.7x prior
Notes/Observations
Presidential Candidate Romney selects Wyoming Rep Paul Ryan.
Japan Prelim Q2 GDP comes in below expectations.
Italy Fin Min Grilli: Italy will not meet deficit goals due to weaker growth, but plans no further budget cuts.
CITIC Securities official: Have not encountered huge overseas losses.
G20 officials said to be planning to hold a conference call later in Augyust to discuss the rise in global food prices.
Equities
Indices: FTSE 100 flat at 5846, DAX +0.40% at 6975, CAC-40 +0.20% at 3441, IBEX-35 +0.20% at 7059, FTSE MIB +0.50% at 14,626, SMI +0.10% at 6487, S&P 500 Futures -0.10% at 1401
European equity indices are trading mixed, amid the losses seen in Asia, as the Shanghai Composite lost 1.5% after policy makers failed to announce any new easing measures over the weekend. Also, global growth concerns are at the forefront, following weaker than expected GDP data out of Japan and ahead of eurozone GDP data due later this week. In Greece, Q2 GDP figures surprised to the upside.
Italy's FTSE MIB has so far performed the best on the session and the Spain's IBEX-35 has underperformed, as Spain's 2-year yields have moved higher. European banks are mixed. Outperformers in the sector include Italian banks, while laggards include Spanish banks and Julius Baer. Resource related firms are trading lower, tracking the declines in copper prices.
In UK equity movers, staffing firm Michael Page [MPI.UK] has traded slightly lower as the company reported a y/y decline in its H1 pretax profits. Energy services company Petrofac [PFC.UK] has declined by over 5% as the company noted that its backlog declined in the first half of the year. The company also noted that it had seen delays in certain contract tender processes over the past few months. In Germany, shares of Solarworld [SWV.DE] have lost over 10%, as the company cut its FY forecast.
Sky Deutscheland [SKYD.DE] has gained over 3% on press speculation that the firm's Q2 operating results (expected on Aug 14th) may exceed analyst expectations. Germany automakers are broadly lower, as a FT article noted that short-selling of European automakers' shares is near a 2-year high. Swiss private bank Julius Baer [BAER.CH] is lower by over 3% after confirming that it acquired Merrill Lynch's international wealth management operations. The deal has a valuation of about CHF860M and as part of the transaction, Julius Baer announced a rights offering equal to ~CHF750M.