Economic Data
(JP) Japan Aug Small Business Confidence: 44.8 v 46.6 prior
(DE) Germany Sept GfK Consumer Confidence: 5.9 v 5.8e
(CH) Swiss July UBS Consumption Indicator: 1.55 v 1.59 prior
(FR) France Survey of Industrial Investments: +5% vs. +6% April view
(HU) Hungary July Unemployment Rate: 10.5 v 10.9%e
(ES) Spain Q2 Final GDP Q/Q: -0.4% v -0.4%e; Y/Y: -1.3% v -1.0%e
(TH) Thailand July Manufacturing Production Index: 172.84 v 173.13 prior; Total Capacity Utilization: 66.8% v 66.3% prior
(CH) Swiss Q2 Non-Farm Payrolls Q/Q: 4.072M v 4.049M prior
(SE) Sweden July Trade Balance (SEK): 3.7B v 7.5Be
(EU) Euro Zone July M3 Money Supply Y/Y: 3.8% v 3.2%e; M3 Three-month Avg: 3.4% v 3.1%e
(HK) Hong Kong July Trade Balance (HKD): -40.1B v -41.5Be; Exports Y/Y: -3.5% v -3.9%e; Imports Y/Y:-1.8% v -1.1%e
(ZA) South Africa Q2 GDP Q/Q: 3.2% v 3.3%e; Y/Y: 3.0% v 2.6%e
Fixed Income
(ES) Spain Debt Agency (Tesoro) sold total 3.607B vs. €2.5-3.5B indicated range in 3-Month and 6-Month Bills
Sold €1.67B in 3-month Bills; Avg Yield 0.946% v 2.434% prior; Bid-to-cover: 3.35x v 2.94x prior; Max Yield 0.988% v 2.650% prior; Tail 4.6bps v 21.6bps prior
Sold €1.93B in 6-month Bills; Avg Yield 2.026% v 3.691% prior; Bid-to-cover: 2.17x v 3.02x prior; Max Yield 2.100% v 3.950% prior; Tail 7.4bps v 25.9 bps prior
(IT) Italy Debt Agency (Tesoro) sold €3.0B vs.€2.0-3.0B indicated range in Zero Coupon May 2014 CTZ; Avg Yield 3.06% v 4.86% prior; Bid-to-cover: 1.95x v 1.78x prior
(IT) Italy Debt Agency (Tesoro) sold total €750M vs. €0.50-0.75B indicated range in 2016 and 2019 BTPi
Sold €455M in 2.1% I/L Sept 2016 BTPi Bonds; Yield 3.69% v 5.20% prior; bid-to-cover: 2.34x v 2.22x prior
Sold €295M in 2.35% I/L Sept 2019 BTPi Bonds; avg yield: 4.39% v 4.32% prior; Bid-to-cover: 2.65x v 2.24x prior
(EU) ECB allotted €1341.5B in 7-Day Main Refinancing Tender at fixed 0.75% vs. 130Be
(CH) Switzerland sold CHF952M in 3-Month Bills; Avg Yield: -0.352% v -0.553% prior
(HU) Hungary Debt Agency (AKK) sold HUF45B vs. HUF45B indicated 3-Month Bills; Avg Yield 6.84% v 6.85% prior; Bid-to-cover: 2.32x v 1.58x prior
Notes/Observations
Japan cuts economic outlook for first time in 10 months on slowing global growth and threatened recovery prospects.
ECB's Asmussen: ECB Bond buying plan will go ahead. Short maturities only. Reforms must be implemented.
Spain Q2 Final GDP YoY revised lower.
Moody's meets to decide if Spain gets downgraded to junk with decision expected by mid-September.
Peripheral bond auctions sees lower yields with upper end of amounts sold.
Draghi's not to attend Jackson Hole leads to risk on with belief bigger things are brewing for Europe.
Equities
Indices: FTSE -0.1% at 5,769, DAX -0.4% at 7,023, CAC-40 -0.4% at 3450, IBEX-35 -0.1% at 7391, FTSE MIB -0.2% at 14,979, SMI -0.7% at 6443, S&P 500 Futures at 1410.80, +0.1%
The major European bourses began Tuesday's session on a softer note as investors readjusted their expectations that policymakers would act swiftly to tackle the euro-zone debt crisis but the announcement that ECB's Draghi would not attend the upcoming Jackson Hole forum provided some risk on sentiment as speculating Europe was on the verge of announcing plans to address the current crisis. The major indices were at the upper end of the session range by mid-morning but still in negative territory.