Economic Data
(RU) Russia Gold and Forex Reserve w/e Aug 10th: $510.0B v $507.4B prior
(TR) Turkey July Consumer Confidence: 92.8 v 91.8 prior
(NL) Netherlands July Unemployment Rate: 6.5% v 6.3%e
(AT) Austria July Consumer Price Index M/M: -0.3 v 0.1% prior; Y/Y: 2.1% v 2.2% prior
(HK) Hong Kong July Unemployment Rate: 3.2% v 3.3%e
(UK) July Retail Sales Ex Auto Fuel M/M: 0.0% v -0.2%e; Y/Y: 3.3% v 2.0%e
(UK) July Retail Sales w/Auto Fuel M/M: +0.3% v -0.1%e; Y/Y: 2.8% v 1.4%e
(EU) Euro Zone July CPI M/M: -0.5% v -0.5%e; Y/Y: 2.4% v 2.4%e; CPI Core Y/Y: 1.7% v 1.7%e
(CH) Swiss Aug Credit Suisse ZEW Expectations Survey: -33.3 v -42.5 prior
(ES) Spain Jun Trade Balance: -€2.7B v -€1.9B prior
(IS) Israel Q2 Advanced GDP Annualized: 3.2% v 2.5%e
(IR) Ireland Jun Trade Balance: €3.4B v €3.5B prior
Fixed Income
(UK) DMO sold £1.5B in 4.5% Sept 2034 Gilts; Avg Yield 2.786% v 3.122% prior; Bid-to-cover: 1.98x v 1.62x prior; Tail: 0.3bps v 0.9bps prior
(HU) Hungary Debt Agency (AKK) sold HUF60B vs. HUF45B indicated in 12-Month Bills; Avg Yield 6.94% v 6.98% prior; Bid-to-cover: 2.23x v 1.71x prior
Notes/Observations
Japan FY13 Nominal GDP expected to be above real GDP for the first time in 16 years in a sign that deflation is easing
China Premier Wen: Easing inflation allows room to adjust monetary policy
China Ministry of Commerce (MOFCOM)'s Shen: Slowdown in exports due to decline in shipments to Europe
China July FDI posts biggest decline since Nov 2009
German Econ Min Roesler: Euro must not fail because of lack of reforms; Believes Draghi that bond purchases can't replace discipline
Senior CDU member Schlarmann accuses Chancellor of dissent; says CDU party has no alternatives
UK July Retail Sales handily beats expectations with significant upward revisions in the back month
Equities
FTSE 100 +0.10% at 5825, DAX flat at 6944, CAC-40 -0.10% at 3446, IBEX-35 +0.80% at 7189, FTSE MIB +0.40% at 14,710, SMI -0.40% at 6483, S&P 500 Futures +0.10% at 1404.75
European equity markets opened the session slightly higher and indices are currently mixed, as traders search for direction, amid the recent rise in global bond yields and disappointing monthly foreign direct investment data out of China. Spain's IBEX-35 has been the outperformer, while the Swiss SMI has underperformed. European banks are mixed, although strength has been seen for Spanish and Italian banks. Resource related companies are mixed, amid the declines in commodity prices. In terms of corporate earnings, companies due to report during the US morning include Gamestop, Sears Holding and Wal-Mart.
Spanish firm Bankia [BKIA.ES] has continued to outperform its European peers, amid ongoing speculation that the firm could receive emergency aid from Spanish officials. African Barrick Gold's [ABG.UK] shares have advanced by over 10%, after Barrick Gold confirmed that it is exploring options for its ~74% stake in the company. UK solar wafer company PV Crystalox Solar [PVCS.UK] has lost over 2%, following the release of its H1 results.
Dutch bank SNS Reaal [SR.NL] is higher by over 3% on better than expected H1 results. Construction company Boskalis [BOKA.NL] is higher by over 2% after reporting H2 results. Telecom Austria [TKA.AT] has loss over 5% as the company cut its FY forecast. Shares of Danish enzyme manufacturer Novozymes [NZYMB.DK] have gained over 3% on better than expected quarterly results. In Switzerland, Zurich Insurance [ZURN.CH] has moved between gains and losses after reporting Q2 results.