China's Growth Prospects Under ScrutinyEconomic Data
(FI) Finland May PPI M/M: -0.3% v -0.1% prior; Y/Y: 0.9% v 1.4% prior
(TH) Thailand May Customs Trade Balance: -$1.7B v -$1.2Be; Customs Exports Y/Y: 7.7% v 0.7%e; Customs Imports Y/Y: 18.2% v 8.0%e
(CZ) Czech Jun Business Confidence: 4.6 v 6.0 prior; Consumer Confidence: -29.3 v -31.0 prior; Composite: -2.2 v -1.4 prior
(HU) Hungary Apr Retail Trade Y/Y: -2.7% v -0.3%e
(ES) Spain May Producer Prices M/M: -0.1% v -0.6%e; Y/Y: 3.2% v 2.8%e
(NL) Netherlands Jun Producer Confidence: -4.8 v -5.0 prior
(TW) Taiwan MayM2 Money Supply Y/Y: 4.4% v 4.7% prior; M1 Money Supply Y/Y: 3.2% v 3.8% prior
Fixed Income
(PH) Philippines sold total PHP5.5B vs. PHP7.5B indicated in 6-month and 12-month Bills (All bids in 3-month Bills again rejected)
(NO) Norway sold NOK2.0B vs. NOK2.0B indicated in 4.25% 2017 Bonds ; Yield 1.64% v 1.94% prior
(HU) Hungary Debt Agency (AKK) sold HUF45B in 6-week Bills; Avg Yield 7.06%
(DE) Germany sold €2.045Bin 12-Month BuBills; Avg Yield 0.0191% v 0.0264% prior; Bid-to-cover: 2.8x v 2.1x prior
Notes/Observations
Market will remain sensitive to eurozone related headlines ahead of Thur-Fri summit.
Illness cancels Greek PM and FM attendance at EU Leader summit and delays visit by Troika to Greece.
Germany to Greece: Stop asking for help and move quickly to enact agreed reforms.
Chancellor Merkel govt secured an agreement with representative of 16 German states to ratify the ESM.
Investor George Soros: EU summit could be fiasco.
Spain formally applies for banking sector aid.
China's growth prospects under scrutiny.
Equities
FTSE 100 -0.80% at 5472, DAX -1.4% at 6174, CAC-40 -1.5% at 3045, IBEX-35 -2.2% at 6723, FTSE MIB -2.5% at 13,320, SMI -0.80% at 5941, S&P 500 Futures -0.75% at 1317
Equity markets opened the session broadly lower as the focus for markets is expected to be the EU summit scheduled for Thursday and Friday (June 28-29th). Banks are broadly lower amid the rise in Italian and Spanish bond yields, led by weakness in the Italian banks. Additionally, the weakness in Italian and Spanish banks has caused the FTSE MIB and IBEX-35 indices to underperform on the session and UK-listed miners are mostly lower, tracking the weakness in oil and copper prices.
In the UK, shares of WM Morrison [MRW.UK] have moved lower by over 2%, as the company announced the planned resignation of its finance director. Essar Energy [ESSR.UK] has lost over 2.5%, after issuing its FY results. Pharmaceutical name Shire [SHP.UK] is lower by over 8%, after the US FDA approved an application for a generic version of the ADHD drug ADDERALL. In France, EADS [EAD.FR] has outperformed the overall CAC-40 index, as the CEO of Airbus said the firm could meet its delivery target for the A350 model. Vivendi [VIV.FR] is lower by over 1%, amid speculation that the firm's SPR unit could announce job cuts.
Italian banks have underperformed their European peers on today's session, amid concerns that Banca Monte Paschi [BMPS.IT] will have to take additional measures to meet its capital requirements. The deadline for European banks to submit their capital plans to the EBA is June 30th. In Belgium, AB Inbev [ABI.BE] has gained ~1%, amid speculation that the firm could seek to acquire the remaining stake in Mexico's Grupo Modelo which is does not currently own. InBev's current stake is equal to 50%.