Peripheral Yields Remain Elevated Ahead Of Eurogroup Meeting

(CH) Swiss June Unemployment Rate: 2.7% v 2.9%e; Unemployment Rate Seasonally Adj: 2/9% v 3.2%e

(FI) Finland May Preliminary Trade Balance: -€20M v -€103M prior

(DE) Germany May Current Account:€9.0B v €10.1Be; Trade Balance: €15.3B v €14.0Be; Exports M/M: 3.9% v 0.3%e; Imports M/.M: 6.3% v 0.8%e

(FR) Bank of France June Business Sentiment: 91 v 92e

(CZ) Czech May Industrial Output Y/Y: -2.4% v -2.3%e; Construction Output Y/Y: -3.5% v -2.7% prior

(CZ) Czech May Trade Balance (CZK): 23.1B v 22.2Be

(DK) Denmark May Current Account (DKK): 13.7B v 8.4Be; Trade Balance (ex-shipping): 7.6B v 5.5Be

(HU) Hungary May Preliminary Trade Balance: €701.1M v €600.0Me

(TR) Turkey May Industrial Production WDA SA M/M: 1.1% v 1.0% prior; Y/Y: No est v 4.5% prior; Industrial Production NSA Y/Y: 2.0%e v 1.8% prior

(TW) Taiwan Jun Total Trade Balance: $2.6B v $2.3Be; Total Exports Y/Y: -3.2% v +2.3%e; Total Imports Y/Y: -8.4% v -1.5%e

(EU) July Sentix Investor Confidence: -29.6 v -26.6e

(SG) Singapore June Foreign Reserves: $243.4B v $237.7B prior

(GR) Greece June Consumer Price Index Y/Y: 1.3% v 1.4% prior; EU Harmonized Y/U: 1.0% v 0.9% prior

Fixed Income
(PH) Philippines sold total PHP6.7B vs. PHP7.5B indicated in 3-month, 6-month and 12-month Bills

(SK) Slovakia Debt Agency (ARDAL) sold €48.5M in 2025 Bonds; Yield 4.1440% v 4.2583% prior; bid-to-cover 1.52x v 1.39x prior

(SK) Slovakia Debt Agency (ARDAL) sold €48.5M in 12-month Bills; Yield 1.5200% v 1.0602% prior

(DE) Germany sold €3.29B in 6-Month BuBills; Avg Yield -0.0344% (record low) v 0.0070% prior; Bid-to-cover: 1.7x v 1.2x prior

EU Finance Ministers begin two-day meeting in Brussels. One goal is to determine Spain bailout conditionality.

Japan's current account surplus smallest since 1985. Machine Tool orders registered biggest drop in 5 years.

Equities
FTSE 100 -0.50% at 5635, DAX -0.30% at 6390, CAC-40 -0.60% at 3151, IBEX-35 -1.6% at 6631,FTSE MIB -0.25% at 13,699, SMI -0.40% at 6159, SMI -0.40% at 6160, S&P 500 Futures -0.50% at 1344

After opening the session mixed, European equity indices are now mostly in negative territory. Spain's IBEX-35 has led the equity losses, as banks are trading lower (Spain's 10-yr yield has moved back above 7%). Resource related companies are trading lower amid continued concerns about the outlook for global growth. Looking ahead, traders are expected to focus on the later today EU finance ministers meeting at which the bailout for Spain's banks is expected to be discussed further. Ahead of the meeting, it was speculated that EU officials could ask Spain to create a "bad bank" as part of the restructuring measures for country's banking system. US earnings will also be in focus this week, with financial results due from Alcoa (July 9th) and JP Morgan (July 13th).

In London, shares of JJB Sports [JJB.UK] have lost over 27%, as the company warned on its outlook. Staffing firm Michael Page [MPI.UK] is lower by over 3%, after warning that it would face challenging conditions in Q3. Amid the broad weakness in commodity-related companies, Glencore [GLEN.UK] and Xstrata [XTA.UK] are lower by ~1%, as it was reported that the vote on their proposed merger could be delayed until Sept. Barclays [BARC.UK]' shares are lower, amid speculation that the firm could seek to spin off its investment banking unit. Steelmaker ArcelorMittal [MT.NL] has declined by over 1% on reports that the firm could not rule out additional production cuts in Europe. Germany's largest retailer Metro [MEO.DE] has traded lower by more than 5%, as its CEO said the EU debt crisis is impacting business.