Economic Data
(FR) FRANCE Q2 FINAL GDP Q/Q: 0.0% V 0.0%E; Y/Y: 0.3% V 0.3%E
(IT) ITALY SEPT PRELIMINARY CPI EU HARMONIZED M/M: 2.1% V 0.0% PRIOR; Y/Y: 3.4% V 3.3% PRIOR
(DE) GERMANY AUG RETAIL SALES M/M: 0.3% V 0.2%E; Y/Y: -0.8% V -0.9%E
(FR) FRANCE AUG CONSUMER SPENDING M/M: -0.8% V -0.3%E; Y/Y: -0.5% V -0.7%E
(FR) FRANCE AUG PRODUCER PRICES M/M: 1.2% V 0.6%E; Y/Y: 2.6% V 2.0%E
(HU) HUNGARY Q2 CURRENT ACCOUNT: €519M V €550ME
(ZA) SOUTH AFRICA AUG PRIVATE SECTOR CREDIT Y/Y: 7.9% V 8.0%E; M3 MONEY SUPPLY Y/Y: 7.8% V 7.7%E
(FI) FINLAND JULY FINAL TRADE BALANCE: €21M V €60M PRELIM
(IT) ITALY SEPT PRELIMINARY CPI (NIC INCL. TOBACCO) M/M: 0.0% V 0.4% PRIOR; Y/Y: 3.2% V 3.2% PRIOR
(EU) EURO ZONE SEPT CPI ESTIMATE Y/Y: 2.7% V 2.4%E
(UK) JULY INDEX OF SERVICES M/M: +1.1% V -1.7% PRIOR; 3M/3M: +0.1% V -0.1% PRIOR
(ES) SPAIN JULY CURRENT ACCOUNT: +€500M V -€0.3B PRIOR
(NO) NORWAY SEPT UNEMPLOYMENT RATE: 2.4% V 2.4% E
(NO) NORWAY AUG RETAIL SALES VOLUME M/M: -0.1% V +0.6% E; Y/Y: 2.7% V 0.5%E
(IT) ITALY AUG PPI M/M: 0.8% V 0.3%E; Y/Y: 3.0% V 2.5%E
(SE) SWEDEN AUG RETAIL SALES M/M: -0.4% V +0.2%E; Y/Y: 1.8% V 2.7%E
(AT) AUSTRIA AUG PRODUCER PRICE INDEX (PPI) M/M: +0.6% V -0.1% PRIOR; Y/Y: 1.0% V 0.25% PRIOR
(AT) AUSTRIA AUG PRODUCER PRICE INDEX (PPI) M/M: +0.6% V -0.1% PRIOR; Y/Y: 1.0% V 0.25% PRIOR
(DK) DENMARK Q2 FINAL GDP Q/Q: -0.4% V -0.4%E; Y/Y: -0.6% V -0.8%E
(HU) HUNGARY AUG UNEMPLOYMENT RATE: 10.4% V 10.5%E
(CH) SWISS SEPT KOF SWISS LEADING INDICATOR: 1.67 V 1.50E
(ES) SPAIN SEPT PRELIMINARY CONSUMER PRICE INDEX (CPI) Y/Y: 3.5% V 2.8%E; CPI EU HARMONIZED Y/Y: 3.5% V 2.8%E
(HU) HUNGARY AUG PRODUCER PRICES M/M: -0.3% V -0.4% PRIOR; Y/Y: 5.1% V 5.1%E
(GR) GREECE AUG PPI M/M: 1.7% V 2.0% PRIOR; Y/Y: 6.5% v 3.8% PRIOR
(GR) Greece July Retail Sales Volume: -9.1% v -10.6% prior; Value: -8% v -9.6% prior
(HK) HONG KONG AUG MONEY SUPPLY M2 Y/Y: % V 5.1% PRIOR; M3 Y/Y: 8.5% V 5.0% PRIOR; M1 Y/Y: 8.6% V 5.9% PRIOR
(HK) HONG KON AUG GOVERNMENT BUDGET BALANCE (HK$): -14.4B V -11.9B PRIOR
(TH) THAILAND AUG CURRENT ACCOUNT: $858M V $300ME; TOTAL TRADE ACCOUNT BALANCE: $1.5B V $483M PRIOR; OVERALL TRADE BALANCE: $2.45B V $515M PRIOR
(EU) ECB: €1.6B borrowed in overnight loan facility v €790M prior; €288.9B parked in deposit facility vs. €308.2B prior
(JP) JAPAN AUG CONSTRUCTION ORDERS Y/Y: 8.7% V 8.0% PRIOR; HOUSING STARTS Y/Y:-5.5% V -9.6% PRIOR; ANNUALIZED HOUSING STARTS: 888K V 870K PRIOR
(JP) JAPAN AUG VEHICLE PRODUCTION Y/Y: +4.5% V 16.7% PRIOR
Fixed Income
(IN) India sells 2017, 2026 and 2030 bonds
(ZA) South Africa sells total ZAR800M in I/L 2025, 2038 and 2050 Bonds
Notes/Observations
Spanish bonds trade cautiously ahead of bank stress test results
Prior reports have suggested that Moody's review of Spain's Baa3 sovereign rating is due at the end of Sept
Spain continued to see capital outflows in July
Overall, European government bonds are trading in a subdued manner going into month and quarter end.
French yields steady ahead of budget announcement
According to Fitch, US money market funds (MMFs) slightly raised exposures to euro zone banks in Aug, with a focus on shorter maturities
Eurozone Sept prelim inflation comes in hotter than expectations
ECB Q2 money market survey shows that shorter-dated unsecured activity was most prevalent
China money market rates move lower by over 80bps, following record cash injection by PBoC.
Shanghai Composite extends gains amid hopes for additional support measures
Yuan hits highest level against the USD since 1993, following speculation that the upcoming Chinese holiday has led to more domestic demand for the Chinese currency.
Equities
Indices: FTSE 100 +0.30% at 5,793, DAX +0.20% at 7,302, CAC-40 -0.20% at 3,433, IBEX-35 -0.20% at 7,826, FTSE MIB flat at 15,444, SMI +0.10% at 6,552, S&P 500 Futures -0.10% at 1,440
European equity markets opened the session with slight gains, amid some initial relief following the Spanish 2013 budget statement, but trading has been subdued going into month and quarter-end. Also, markets have remained cautious ahead of the results of the Spanish bank stress tests. Banks are broadly higher and outperformers include Barclays and Commerzbank. Resource related companies are gaining, amid the rise in commodity prices.
In Germany, steelmaker Thyssenkrupp [TKA.DE] has outperformed the DAX, after agreeing to sell its tailored blanks unit to Wuhan Iron and Steel Corporation (WISCO). Shares of the London Stock Exchange [LSE.UK] have lost over 6%, as the company said that its LCH.Clearnet unit could have to increase its capital levels if measures recommended by the European Securities and Markets Authority (ESMA) and European Banking Authority (EBA) for European central counterparties (CCPs) are adopted. Electronic parts company, Electrocomponents [ECM.UK] has declined by over 8%, after issuing a profit warning.