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Risk Aversion Continues To Find Footing In The Session

By Trade The NewsMarket OverviewJan 16, 2013 06:57AM ET
Risk Aversion Continues To Find Footing In The Session
By Trade The News   |  Jan 16, 2013 06:57AM ET
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  • Niikei225 Index registers biggest 1-day percentage decline since May 2012 following the JPY's retracement; China and Hong Kong move off worst levels into their close
  • Japan Nov Machine orders rise with as the JPY started to weaken
  • World Bank cuts 2013 and 2014 global GDP forecasts
  • China 2012 FDI registers its first annual decline in 3 years
  • Outgoing Eurogroup President Juncker (Luxembourg PM): EUR exchange rate is dangerously high
  • Spain PM Rajoy: should be more stimulus for Euro Zone creditor nations; Reiterates that there is no request for aid from ECB
  • Fitch: Chances for Britain to lose its AAA rating are increasing
  • (US) Fed's Rosengren (moderate, FOMC voter in 2013): Reiterates decline in unemployment to 7.25% would constitute "substantial improvement," would merit debate about halting asset purchases
  • Japan grounds entire Dreamiliner fleet thru Thursday
  • EU 27 Dec New Car registrations decline by largest amount in 2 years
  • Italy registers 2012 trade surplus of €8.0B; first such surplus since 2002
  • Germany sells new 10-year Bund with yield at a 3-month high
Economic Data
  • (EU) Dec EU27 New Car Registrations: -16.3 v -10.3% prior, (largest decline in 2 years)
  • (HU) Hungary Nov Final Industrial Production M/M: -0.1% v -0.1% prelim; Y/Y: -6.9% v -6.9% prelim
  • (TR) Turkey Dec Consumer Confidence: 89.0 v 89.2 prior
  • (CH) Swiss Nov Real Retail Sales Y/Y: 2.9% v 3.4%e
  • (AT) Austria Dec Consumer Price Index M/M: 0.2% v 0.1% prior; Y/Y: 2.8% v 2.8% prior
  • (IT) Italy Nov Total Trade Balance: €2.4B v €2.7Be; Trade Balance EU: €508M v €949M prior
  • (ZA) South Africa Dec Kagiso PMI: 47.3 v 50.2e
  • (NO) Q4 Existing Homes Q/Q: -0.7%% v +0.6% prior
  • (EU) Eurozone Dec CPI M/M: 0.4% v 0.3%e; Y/Y: 2.2% v 2.2%e; CPI Core Y/Y: 1.5% v 1.5%e
  • (BR) Brazil Nov Economic Activity Index M/M: 0.4% v 0.2%e; Y/Y: 2.8% v 2.3%e
Fixed Income:
  • (IN) India sold total INR100B vs. INR100B indicated in 3-month and 6-month Bills
  • (EU) ECB allotted $60M in 7-Day USD Tender at fixed 0.65% vs. $60M prior
  • (SE) Sweden sold SEK10B vs. SEK10B indicated in 3-month Bills; Yield: 0.8811%
  • (DE) Germany sold €4.007B in new 1.5% 2023 Bund; Avg Yield 1.56% v 1.40% prior; Bid-to-cover: 1.7x v 1.5x prior
  • (PT) Portugal Debt Agency (IGCP) sold total €2.5B vs. €2.5B indicated in 3-month, 12-month and 18-month Bills
  • Sold €300M in 3-month Bills; Avg Yield 0.667% v 1.936% prior; Bid-to-cover: 3.8x v 5.1x prior
  • Sold €1.2B in 12-month Bills; Avg Yield 1.609% v 2.101% prior; Bid-to-cover: 2.3x v 2.5x prior
  • Sold €1.0B in 18-month Bills; Avg Yield 1.963% v 2.990% prior; Bid-to-cover: 2.7x v 1.9x prior
Indices: FTSE 100 -0.50% at 6,086, DAX -0.30% at 7,656, CAC-40 -0.40% at 3,682, IBEX-35 -0.80% at 8,534, FTSE MIB -1.3% at 17,245, SMI +0.10% at 7,276, S&P 500 Futures -0.25% at 1,461

European equity markets have tracked the declines seen in the Japanese equity markets, ahead of earnings from US banks (including JP Morgan and Goldman Sachs). Today's weakness has been led by Italy's FTSE MIB and Spain's IBEX-35, amid the slight rise in peripheral bond yields. In terms of the banking sector, French banks have underperformed for the second straight session, following the recently announced changes to certain domestic saving rates. Resource related firms are broadly lower, tracking the declines in commodity prices.

German movers: Gerresheimer -2.5% (broker commentary); Metro +1.5% (Q4 sales, reaffirmed outlook),Fresenius SE +1% (broker commentary),Lanxess +0.60% (reaffirmed outlook)

UK movers: French Connection -9.5%(sales update),Taylor Wimpey -4% (broker commentary), Thorntons -4% (sales update), Imperial Tobacco -3.5% (ex-dividend),JD Wetherspoon -2.8% (sales update), Bumi PLC -2.5% (concerns related to Bakrie proposal), Arm Holdings -1.5% (broker commentary), ITV -1.5% (broker commentary), Diageo -0.50% (broker commentary); Experian +0.50% (Q4 update)

French movers: Faurecia -7.5% (FY results, debt levels),Alcatel-Lucent +1% (contract award)

Norwegian movers: Marine Harvest -2% (Q4 update)

Dutch movers: Pharming -10% (convertible bond offering), SNS Reaal (EU ruling related to bank bad

Switzerland movers [Dufry -2.5% (share sale speculation),Barry Callebaut -1.6% (Q1 sales update)]
Risk Aversion Continues To Find Footing In The Session

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Risk Aversion Continues To Find Footing In The Session

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