Economic Data
(RU) Russia Narrow Money Supply w/e Sept 3rd (RUB): 7.09T v 7.18T prior
(CH) Swiss Aug Unemployment Rate: 2.8% v 2.8%e; Unemployment Rate Seasonally Adj: 2.9% v 2.9%e
(DE) Germany July Current Account: €12.8B v €13.5Be; Trade Balance: €16.9B v €15.3Be; Exports M/M: +0.5% v -0.5%e; Imports M/M: +0.9% v -0.3%e
(DE) Germany Q2 Labor Costs Q/Q: 2.5% v 1.8% prior; Y/Y: 1.5% v % prior (Note: 1Q Labor Costs to be published the same day as 2Q)
(FI) Finland July Preliminary Trade Balance: €40.0M v €39M prior
(ZA) South Africa Aug Net Reserves: $48.3B v $47.5Be; Gross Reserves: $50.0B v $49.8Be
(AU) Australia Aug Foreign Reserves: A$44.1B v A$46.8B prior
(FR) France July Central Govt. Balance: -€85.5B v -€56.7B prior
(FR) France July Trade Balance: -€4.3B v -€5.9Be
(ES) Spain July Industrial Output WDA Y/Y: -5.4% v -5.2%e; Industrial Output NSA Y/Y: -2.6 v -6.8% prior
(CH) SNB Aug Foreign Currency Reserves (CHF): 418.4B v 406.5B prior
(CZ) Czech Q2 Final GDP Q/Q: -0.2% v -0.2% prelim; Y/Y: -1.0% v -1.2% prelim
(DK) Denmark July Industrial Production M/M: +4.4% v -1.8% prior; Industrial Orders M/M: +4.1% v -2.8% prior
(HU) Hungary July Preliminary Industrial Production M/M: -1.2% v -2.2% prior; Y/Y: -2.2% v +0.7%e
(HU) Hungary Q2 Final GDP Q/Q: -0.2% v -0.2% prelim; Y/Y: -1.3% v -1.2% prelim
(NL) Netherlands July Industrial Production M/M: 1.4% v 0.0%e; Y/Y: +0.1% v -2.3%e; Industrial Sales Y/Y: -0.4% v -2.7% prior
(SE) Sweden Aug Budget Balance (SEK): +11.1BB v -2.2B prior
(CZ) Czech Aug International Reserves: No est v $39.0B prior
(NO) Norway July Industrial Production M/M: -4.5% v +0.6% prior; Y/Y: 2.6% v 7.7% prior
(NO) Norway July Manufacturing Production M/M: +0.3% v -0.3%e; Y/Y: 7.6% v 4.3% prior
(TW) Taiwan Aug Total Trade Balance: $3.3B v $1.5Be; Total Exports Y/Y: -4.2% v -2.7%e; Total Imports Y/Y: % v +1.5%e
(UK) BoE/GfK Aug Inflation next 12 Months: 3.2% v 3.7% prior
(UK) July Industrial Production M/M: 2.9% v 1.5%e (largest Monthly rise since Feb 1987; Y/Y: -0.8% v -2.7%e
(UK) July Manufacturing Production M/M: 3.2% v 1.8%e; Y/Y: -0.5% v -2.4%e
(UK) Aug PPI Input M/M: 2.0% v 1.7%e; Y/Y: 1.4% v 1.4%e
(UK) Aug PPI Output M/M: 0.5% v 0.2%e; Y/Y: 2.2% v 1.9%e
(UK) Aug PPI Output Core M/M: 0.1% v 0.0%e; Y/Y: 1.2% v 1.2%e
(GR) Greece Q2 Final GDP Y/Y: -6.3%e v -6.2%e
(IT) Bank of Italy (BOI) Aug Balance-Sheet Aggregates: ECB funding to Italian banks at €280.7B vs. €283.3B prior
(IC) Iceland Q2 GDP Q/Q: -4.5% v +0.3% prior; Y/Y: 0.5 v 4.2% prior
(SG) Singapore Aug Foreign Reserves: $246.2B v $244.1B prior
Fixed Income
(IN) India sold total INR160B vs. INR160B target in 2017, 2022, 2030 and 2038 bonds
(ZA) South Africa sold total ZAR800M in I/L 2025, 2038 and 2050 Bonds
Notes/Observations
Aussie data weaker sparks possible near term rate cut expectations
Japan Fin Min Azumi warns that Govt to out of money by Nov without the passage of deficit-bond bill.
China National Development and Reform Commission (NDRC) approved several infrastructure projects valued at approx CNY1T
EU/IMF/ECB Troika returns to Greece today
President Obama accepts party nomination and admits that change takes eight years and not four
UK Indistrial Production registers its largest monthly rise since Feb 1987
Focus on US nonfarm payrolls and impact on QE3 outlook
Equities
indices: FTSE 100 +0.30% at 5795, DAX +0.80% at 7224, CAC-40 +1.3% at 3556, IBEX-35 +1.2% at 7956, FTSE MIB +2.4% at 16,155, SMI +0.40% at 6550, S&P 500 Futures +0.30% at1436
European equity indices are higher across the board, after the ECB disclosed details related to its new bond buying program. The Spanish IBEX-35 and Italian FTSE MIB have outperformed, as peripheral bond yields have declined sharply. Gains in the banking sector have been widespread, with the upside being led by Barclays, Deutsche Bank, Commerzbank, Credit Agricole, RBS, SocGen and Unicredit.
Most resource related companies are trading higher, tracking the gains in the Chinese equity market. Equities in Shanghai rose by over 3.5% on the session (biggest one day gain since mid-Jan), on comments out of the ECB and China's move to approve $157B in infrastructure projects. Looking ahead, traders are expected to focus on the later today release of the monthly US nonfarm payrolls report and CPI data out of China (due on Sunday).
In the UK, shares of Xstrata [XTA.UK] have traded higher by over 10%, after Glencore raised its merger proposal to 3.05 shares from 2.8 prior. Shares of Glencore [GLEN.UK] have lost over 4% on the session.In Germany, Volkswagen [VOW3.DE] has traded higher, despite confirming that it planned to lower its full year sales forecast. Machinery firm Deutz [DEZ.DE] has risen by over 2% on takeover speculation.
(RU) Russia Narrow Money Supply w/e Sept 3rd (RUB): 7.09T v 7.18T prior
(CH) Swiss Aug Unemployment Rate: 2.8% v 2.8%e; Unemployment Rate Seasonally Adj: 2.9% v 2.9%e
(DE) Germany July Current Account: €12.8B v €13.5Be; Trade Balance: €16.9B v €15.3Be; Exports M/M: +0.5% v -0.5%e; Imports M/M: +0.9% v -0.3%e
(DE) Germany Q2 Labor Costs Q/Q: 2.5% v 1.8% prior; Y/Y: 1.5% v % prior (Note: 1Q Labor Costs to be published the same day as 2Q)
(FI) Finland July Preliminary Trade Balance: €40.0M v €39M prior
(ZA) South Africa Aug Net Reserves: $48.3B v $47.5Be; Gross Reserves: $50.0B v $49.8Be
(AU) Australia Aug Foreign Reserves: A$44.1B v A$46.8B prior
(FR) France July Central Govt. Balance: -€85.5B v -€56.7B prior
(FR) France July Trade Balance: -€4.3B v -€5.9Be
(ES) Spain July Industrial Output WDA Y/Y: -5.4% v -5.2%e; Industrial Output NSA Y/Y: -2.6 v -6.8% prior
(CH) SNB Aug Foreign Currency Reserves (CHF): 418.4B v 406.5B prior
(CZ) Czech Q2 Final GDP Q/Q: -0.2% v -0.2% prelim; Y/Y: -1.0% v -1.2% prelim
(DK) Denmark July Industrial Production M/M: +4.4% v -1.8% prior; Industrial Orders M/M: +4.1% v -2.8% prior
(HU) Hungary July Preliminary Industrial Production M/M: -1.2% v -2.2% prior; Y/Y: -2.2% v +0.7%e
(HU) Hungary Q2 Final GDP Q/Q: -0.2% v -0.2% prelim; Y/Y: -1.3% v -1.2% prelim
(NL) Netherlands July Industrial Production M/M: 1.4% v 0.0%e; Y/Y: +0.1% v -2.3%e; Industrial Sales Y/Y: -0.4% v -2.7% prior
(SE) Sweden Aug Budget Balance (SEK): +11.1BB v -2.2B prior
(CZ) Czech Aug International Reserves: No est v $39.0B prior
(NO) Norway July Industrial Production M/M: -4.5% v +0.6% prior; Y/Y: 2.6% v 7.7% prior
(NO) Norway July Manufacturing Production M/M: +0.3% v -0.3%e; Y/Y: 7.6% v 4.3% prior
(TW) Taiwan Aug Total Trade Balance: $3.3B v $1.5Be; Total Exports Y/Y: -4.2% v -2.7%e; Total Imports Y/Y: % v +1.5%e
(UK) BoE/GfK Aug Inflation next 12 Months: 3.2% v 3.7% prior
(UK) July Industrial Production M/M: 2.9% v 1.5%e (largest Monthly rise since Feb 1987; Y/Y: -0.8% v -2.7%e
(UK) July Manufacturing Production M/M: 3.2% v 1.8%e; Y/Y: -0.5% v -2.4%e
(UK) Aug PPI Input M/M: 2.0% v 1.7%e; Y/Y: 1.4% v 1.4%e
(UK) Aug PPI Output M/M: 0.5% v 0.2%e; Y/Y: 2.2% v 1.9%e
(UK) Aug PPI Output Core M/M: 0.1% v 0.0%e; Y/Y: 1.2% v 1.2%e
(GR) Greece Q2 Final GDP Y/Y: -6.3%e v -6.2%e
(IT) Bank of Italy (BOI) Aug Balance-Sheet Aggregates: ECB funding to Italian banks at €280.7B vs. €283.3B prior
(IC) Iceland Q2 GDP Q/Q: -4.5% v +0.3% prior; Y/Y: 0.5 v 4.2% prior
(SG) Singapore Aug Foreign Reserves: $246.2B v $244.1B prior
Fixed Income
(IN) India sold total INR160B vs. INR160B target in 2017, 2022, 2030 and 2038 bonds
(ZA) South Africa sold total ZAR800M in I/L 2025, 2038 and 2050 Bonds
Notes/Observations
Aussie data weaker sparks possible near term rate cut expectations
Japan Fin Min Azumi warns that Govt to out of money by Nov without the passage of deficit-bond bill.
China National Development and Reform Commission (NDRC) approved several infrastructure projects valued at approx CNY1T
EU/IMF/ECB Troika returns to Greece today
President Obama accepts party nomination and admits that change takes eight years and not four
UK Indistrial Production registers its largest monthly rise since Feb 1987
Focus on US nonfarm payrolls and impact on QE3 outlook
Equities
indices: FTSE 100 +0.30% at 5795, DAX +0.80% at 7224, CAC-40 +1.3% at 3556, IBEX-35 +1.2% at 7956, FTSE MIB +2.4% at 16,155, SMI +0.40% at 6550, S&P 500 Futures +0.30% at1436
European equity indices are higher across the board, after the ECB disclosed details related to its new bond buying program. The Spanish IBEX-35 and Italian FTSE MIB have outperformed, as peripheral bond yields have declined sharply. Gains in the banking sector have been widespread, with the upside being led by Barclays, Deutsche Bank, Commerzbank, Credit Agricole, RBS, SocGen and Unicredit.
Most resource related companies are trading higher, tracking the gains in the Chinese equity market. Equities in Shanghai rose by over 3.5% on the session (biggest one day gain since mid-Jan), on comments out of the ECB and China's move to approve $157B in infrastructure projects. Looking ahead, traders are expected to focus on the later today release of the monthly US nonfarm payrolls report and CPI data out of China (due on Sunday).
In the UK, shares of Xstrata [XTA.UK] have traded higher by over 10%, after Glencore raised its merger proposal to 3.05 shares from 2.8 prior. Shares of Glencore [GLEN.UK] have lost over 4% on the session.In Germany, Volkswagen [VOW3.DE] has traded higher, despite confirming that it planned to lower its full year sales forecast. Machinery firm Deutz [DEZ.DE] has risen by over 2% on takeover speculation.