German Opposition Said To Reach Understanding Over Economic Growth Measures
Economic Data
(EU) ECB: €1.3B borrowed in overnight loan facility vs. €5.8B prior; €779.8B parked in deposit facility vs. €764.5B prior
(CH) Swiss May Trade Balance (CHF): 2.5B v 1.3B prior; Real Exports M/M: +1.8% v -0.7% prior; Real Imports M/M: -0.1 v 3.1% prior
(FR) France Jun Preliminary PMI Manufacturing: 45.3 v 44.5e; PMI Services: 47.3 v 45.1e
(ES) Spain Apr Mortgages-capital loaned Y/Y: -26.4% v -41.5% prior; Mortgages on Houses Y/Y: -31.3% v -42.0% prior
(CH) Swiss May M3 Money Supply Y/Y: 6.2% v 6.3% prior
(DE) Germany Jun Advanced PMI Manufacturing: 44.7 v 45.2e; PMI Services: 50.3 v 51.5e
(NL) Netherlands May House Price Index M/M: -0.5% v -0.8% prior; Y/Y: -5.5% v -5.2% prior
(NL) Netherlands May Unemployment Rate: 6.2% v 6.2%e
(EU) Euro Zone Jun Advanced PMI Manufacturing: 44.8 v 44.8e (3-year low); PMI Services: 46.8 v 46.4e; PMI Composite: 46.0 v 45.5e
(EU) Euro Zone Apr Current Account nsa: €1.6B v €8.7B prior; Current Account Seasonally Adj: €4.6B v €10.3B prior
(IT) Italy May Non-EU Trade Balance: €306M v -€904M prior
(ZA) South Africa Q1 Current Account (ZAR): -152.6B v -136.2Be; Percentage to GDP: -4.9% v -4.5%e
(ZA) South Africa Q1 Trade Balance (ZAR): -42.1B v -17.1B y/y
(UK) May Retail Sales Ex Auto Fuel M/M: 0.9% v 0.7%e; Y/Y: 3.0% v 2.7%e
(UK) May Retail Sales w/Auto Fuel M/M: 1.4% v 1.2%e; Y/Y: 2.4% v 2.1%e
(HK) Hong Kong May CPI Composite Y/Y: 4.3% v 4.3%e
(HK) Hong Kong Q1 Overall Balance of Payments: $48.2B v $49.8B prior; Current Account: $1.7B v $20.1B prior
(TW) Taiwan Central Bank left the Benchmark Interest Rate unchanged at 1.875%; as expected
(RU) Russia Gold & Forex Reserve w/e Jun 15th: $512.2B v $512.4B prior
(PL) Jun Central/Eastern European ZEW Indicator: 0.0 v 14.6 prior
(IC) Iceland May Wage Index M/M: +0.4% v -0.1% prior; Y/Y: 11.0% v 11.9% prior
Fixed Income
(ES) Spain Debt Agency (Tesoro) sold total €2.22B vs. €1.0-2.0B indicated range in 2014, 2015 and 2017 on bonds
Sold €700M in 3.4% April 2014 Bono; Avg Yield 4.706% v 2.069% prior; Bid-to-cover: 3.96x v 2.81x prior; Maximum Yield 4.791% v 2.213% prior
Sold €918M in 4.0% July 2015 Bono; Avg Yield 5.547% v 4.876% prior; Bid-to-cover: 3.18x v 3.01x prior; Maximum Yield 5.510 % v 4.917% prior
Sold €602M in 5.5% July 2017 bono; Avg Yield 6.072% v 4.960% prior; Bid-to-cover: 3.44x v 3.14x prior; Max Yield 6.195% v 4.982% prior
(FR) France Debt Agency (ATF)sold total €8.43B v €7.0-8.5B in 2014, 2015, 2016 and 2017 BTANs
Sold €2.775B in 0.75% Sept 2014 BTAN; Avg Yield 0.54% v 0.74% prior; Bid-to-cover: 2.23x v 2.97x prior
Sold €1.22B in 2.0% 2015 BTAN; Avg Yield 0.83% v 1.51% prior; Bid-to-cover: 3.31x v 3.40x prior
Sold €1.1B in 2.25% Feb 2016 BTAN; avg Yield 1.05% v 1.40% prior; Bid-to-cover: 2.98x v 3.47x prior
Sold €3.337B in 1.75% Feb 2017 BTAN; avg Yield 1.43% v 1.72% prior; Bid-to-cover: 2.17x v 2.04x prior
(UK) DMO sold £3.25B in 1.75% Sept 2022 Gilts; Avg Yield 1.92%; Bid-to-cover: 1.63x; Tail 0.5bps
(HU) Hungary Debt Agency (AKK sold HUF55B vs. HUF45B indicated in 12-Month Bills; Avg Yield 7.39% v 7.58% prior; Bid-to-cover: 2.15x v 1.78x prior
Notes/Observations
Fed downgraded GDP growth and employment forecasts and says it is prepared to do more (Dealer not it mostly does not)
China HSBC PMI data disappoints and registers its 8th consecutive contraction
Germany PMI data misses expectations
NYMEX front month crude tests below the $80 per barrel level for the first time since Oct 2011
Spain sells slightly above its intended amount at its note auction; higher yields offset by healthy bid-to-cover ratios
UK Retail sales beat expectations
German Gov opposition reaches deal on fiscal compact
Equities
Indices: FTSE 100 -0.50% at 5596, DAX -0.40% at 6368, CAC-40 -0.30% at 3116, IBEX-35 -0.20% at 6783, FTSE MIB +0.40% at 13,779, SMI +0.10% at 6021, S&P 500 Futures -0.24% at 1347.50
European equity indices are trading mixed following yesterday's Fed decision and as Spain sold debt (issued bonds due 2014, 2015 and 2017). After opening the session lower, banks are trading mixed, while resource related companies have traded broadly lower (tracking declines in commodity prices). As of the time of writing, equity indices have pared losses as a German government official confirmed that parties in the country are close to an agreement related to the fiscal pact and ESM. Italy's FTSE MIB has outperformed, while the Spanish IBEX-35 has moved off of the session worst levels following Spain's debt auction.
Shares of energy services company Invensys [ISYS.UK] have declined by over 16%, as the company said the merger talks with Emerson Electric had ended. Ahead of the announcement, the company's shares had benefited from ongoing takeover speculation. In other UK movers, Aquarius Platinum [AQP.UK] is lower by over 7% (announced closure of Everest Mine), Micro Focus [MCRO.UK] has gained over 4% (reported FY12 earnings), retailer Dixons [DXNS.UK] has lost ~2% (reported FY12 earnings) and Ashtead Group [AHT.UK] is higher by over 3% (issued Q4 results).
In Amsterdam, telecom name KPN [KPN.NL] is lower by over 2%, after disclosing that It was unable to sell its German unit E-Plus. Air France [AF.FR] is trading higher by over 2%, amid renewed speculation that the firm could announce a plan to cut about 5,000 jobs (~5% of total workforce), while pharmaceutical name NicOx [COX.FR] is higher by over 7% (announced licensing agreement related to ocular tests). Italian medical products company Sorin [SRN.IT] has gained over 12% on takeover speculation.
Economic Data
(EU) ECB: €1.3B borrowed in overnight loan facility vs. €5.8B prior; €779.8B parked in deposit facility vs. €764.5B prior
(CH) Swiss May Trade Balance (CHF): 2.5B v 1.3B prior; Real Exports M/M: +1.8% v -0.7% prior; Real Imports M/M: -0.1 v 3.1% prior
(FR) France Jun Preliminary PMI Manufacturing: 45.3 v 44.5e; PMI Services: 47.3 v 45.1e
(ES) Spain Apr Mortgages-capital loaned Y/Y: -26.4% v -41.5% prior; Mortgages on Houses Y/Y: -31.3% v -42.0% prior
(CH) Swiss May M3 Money Supply Y/Y: 6.2% v 6.3% prior
(DE) Germany Jun Advanced PMI Manufacturing: 44.7 v 45.2e; PMI Services: 50.3 v 51.5e
(NL) Netherlands May House Price Index M/M: -0.5% v -0.8% prior; Y/Y: -5.5% v -5.2% prior
(NL) Netherlands May Unemployment Rate: 6.2% v 6.2%e
(EU) Euro Zone Jun Advanced PMI Manufacturing: 44.8 v 44.8e (3-year low); PMI Services: 46.8 v 46.4e; PMI Composite: 46.0 v 45.5e
(EU) Euro Zone Apr Current Account nsa: €1.6B v €8.7B prior; Current Account Seasonally Adj: €4.6B v €10.3B prior
(IT) Italy May Non-EU Trade Balance: €306M v -€904M prior
(ZA) South Africa Q1 Current Account (ZAR): -152.6B v -136.2Be; Percentage to GDP: -4.9% v -4.5%e
(ZA) South Africa Q1 Trade Balance (ZAR): -42.1B v -17.1B y/y
(UK) May Retail Sales Ex Auto Fuel M/M: 0.9% v 0.7%e; Y/Y: 3.0% v 2.7%e
(UK) May Retail Sales w/Auto Fuel M/M: 1.4% v 1.2%e; Y/Y: 2.4% v 2.1%e
(HK) Hong Kong May CPI Composite Y/Y: 4.3% v 4.3%e
(HK) Hong Kong Q1 Overall Balance of Payments: $48.2B v $49.8B prior; Current Account: $1.7B v $20.1B prior
(TW) Taiwan Central Bank left the Benchmark Interest Rate unchanged at 1.875%; as expected
(RU) Russia Gold & Forex Reserve w/e Jun 15th: $512.2B v $512.4B prior
(PL) Jun Central/Eastern European ZEW Indicator: 0.0 v 14.6 prior
(IC) Iceland May Wage Index M/M: +0.4% v -0.1% prior; Y/Y: 11.0% v 11.9% prior
Fixed Income
(ES) Spain Debt Agency (Tesoro) sold total €2.22B vs. €1.0-2.0B indicated range in 2014, 2015 and 2017 on bonds
Sold €700M in 3.4% April 2014 Bono; Avg Yield 4.706% v 2.069% prior; Bid-to-cover: 3.96x v 2.81x prior; Maximum Yield 4.791% v 2.213% prior
Sold €918M in 4.0% July 2015 Bono; Avg Yield 5.547% v 4.876% prior; Bid-to-cover: 3.18x v 3.01x prior; Maximum Yield 5.510 % v 4.917% prior
Sold €602M in 5.5% July 2017 bono; Avg Yield 6.072% v 4.960% prior; Bid-to-cover: 3.44x v 3.14x prior; Max Yield 6.195% v 4.982% prior
(FR) France Debt Agency (ATF)sold total €8.43B v €7.0-8.5B in 2014, 2015, 2016 and 2017 BTANs
Sold €2.775B in 0.75% Sept 2014 BTAN; Avg Yield 0.54% v 0.74% prior; Bid-to-cover: 2.23x v 2.97x prior
Sold €1.22B in 2.0% 2015 BTAN; Avg Yield 0.83% v 1.51% prior; Bid-to-cover: 3.31x v 3.40x prior
Sold €1.1B in 2.25% Feb 2016 BTAN; avg Yield 1.05% v 1.40% prior; Bid-to-cover: 2.98x v 3.47x prior
Sold €3.337B in 1.75% Feb 2017 BTAN; avg Yield 1.43% v 1.72% prior; Bid-to-cover: 2.17x v 2.04x prior
(UK) DMO sold £3.25B in 1.75% Sept 2022 Gilts; Avg Yield 1.92%; Bid-to-cover: 1.63x; Tail 0.5bps
(HU) Hungary Debt Agency (AKK sold HUF55B vs. HUF45B indicated in 12-Month Bills; Avg Yield 7.39% v 7.58% prior; Bid-to-cover: 2.15x v 1.78x prior
Notes/Observations
Fed downgraded GDP growth and employment forecasts and says it is prepared to do more (Dealer not it mostly does not)
China HSBC PMI data disappoints and registers its 8th consecutive contraction
Germany PMI data misses expectations
NYMEX front month crude tests below the $80 per barrel level for the first time since Oct 2011
Spain sells slightly above its intended amount at its note auction; higher yields offset by healthy bid-to-cover ratios
UK Retail sales beat expectations
German Gov opposition reaches deal on fiscal compact
Equities
Indices: FTSE 100 -0.50% at 5596, DAX -0.40% at 6368, CAC-40 -0.30% at 3116, IBEX-35 -0.20% at 6783, FTSE MIB +0.40% at 13,779, SMI +0.10% at 6021, S&P 500 Futures -0.24% at 1347.50
European equity indices are trading mixed following yesterday's Fed decision and as Spain sold debt (issued bonds due 2014, 2015 and 2017). After opening the session lower, banks are trading mixed, while resource related companies have traded broadly lower (tracking declines in commodity prices). As of the time of writing, equity indices have pared losses as a German government official confirmed that parties in the country are close to an agreement related to the fiscal pact and ESM. Italy's FTSE MIB has outperformed, while the Spanish IBEX-35 has moved off of the session worst levels following Spain's debt auction.
Shares of energy services company Invensys [ISYS.UK] have declined by over 16%, as the company said the merger talks with Emerson Electric had ended. Ahead of the announcement, the company's shares had benefited from ongoing takeover speculation. In other UK movers, Aquarius Platinum [AQP.UK] is lower by over 7% (announced closure of Everest Mine), Micro Focus [MCRO.UK] has gained over 4% (reported FY12 earnings), retailer Dixons [DXNS.UK] has lost ~2% (reported FY12 earnings) and Ashtead Group [AHT.UK] is higher by over 3% (issued Q4 results).
In Amsterdam, telecom name KPN [KPN.NL] is lower by over 2%, after disclosing that It was unable to sell its German unit E-Plus. Air France [AF.FR] is trading higher by over 2%, amid renewed speculation that the firm could announce a plan to cut about 5,000 jobs (~5% of total workforce), while pharmaceutical name NicOx [COX.FR] is higher by over 7% (announced licensing agreement related to ocular tests). Italian medical products company Sorin [SRN.IT] has gained over 12% on takeover speculation.