Economic Data
(JP) Japan July Consumer Confidence: 39.7 v 40.0e
(IN) India Jun Industrial Production Y/Y: -1.8% v +0.4%e
(CN) China July Industrial Production Y/Y: 9.2% v 9.7%e; Industrial Production YTD: 10.3% v 10.4%e
(CN) China July YTD Urban Fixed Assets Y/Y: 20.4% v 20.6%e
(CN) China July Retail Sales Y/Y: 13.1% v 13.5%e; Retail Sales YTD: 14.2% v 14.3%e
(JP) Japan July Preliminary Machine Tool Orders Y/Y: -6.8% v -15.5% prior
(ID) Indonesia Central Bank left the Reference Rate unchanged at 5.75%; as expected
(CZ) Czech July CPI M/M:-0.1% v 0.2%e; Y/Y: 3.1% v 3.4%e
(DK) Denmark Jun Current Account (DKK): 15.3B v 12.7B prior; Trade Balance (ex-shipping): 6.9 v 7.0B prior
(ES) Spain Jun House transactions Y/Y: -11.4% v -11.6% prior
(NL) Netherlands July CPI M/M: +0.7% v -0.5% prior; Y/Y: 2.4% v 1.9%e
(NL) Netherlands July CPI EU Harmonized M/M: +0.4% v -0.6% prior; Y/Y: 2.6% v 2.5%e
(SE) Sweden July Average House Prices (SEK): 2.078M v 2.017M prior
(IT) Italy Jun Total Trade Balance: €2.5B v €1.0B prior; EU Trade Balance: €1.0B v €691M prior
(UK) Jun Visible Trade Balance: -£10.1B v -£8.7Be; Total Trade Balance: -£4.3B v -£3.1Be; Trade Balance Non EU: -£5.2B v -£4.1Be
(RU) Russia Gold & Forex Reserve w/e Aug 3rd: $507.4B v $505.0B prior
(GR) Greece Jun Industrial Production Y/Y: +0.3% v -2.9% prior
(GR) Greece May Unemployment Rate: 23.1% v 22.6% prior
UN Food & Agricultural Organization (FAO) reports July Food Price Index: 213 v 201 prior (first MoM rise in 4 months)
(PT) Portugal Jun Trade Balance: -€577M v -€940M prior
(IE) Ireland July CPI M/M: -0.1% v -0.2% prior; Y/Y: 1.6% v 1.7% prior
(IE) Ireland July CPI EU Harmonized M/M: -0.1% v -0.2% prior; Y/Y: 2.0% v 1.9% prior
(EU) OECD Jun Leading Indicators: 100.3 v 100.4 prior
Fixed Income:
(HU) Hungary Debt Agency (AKK) sold total HUF67.5B vs. HUF45B indicated in 2015, 2017 and 2020 Bonds
(UK) DMO sold £1.5B in 5% Sept 2014 Gilts mini tender; Avg Yield 0.136% v 0.351% prior; Bid-to-cover: 3.42x v 3.67x prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Notes/Observations
Bank of Korea leaves 7-day Repo Rate unchanged; as expected
BOJ leaves both interest rates and asset purchase target unchanged, as expected
Australia July employment data slightly beats expectations
China CPI YoY reading at lowest level since Jan 2010
China Industrial Production and Retail Sales below expectations and weaker MoM leading to renewed speculation that China PBoC has room to again adjust its key rates
French Fin Min: France not pressuring Italy and Spain to take aid
UK Trade Deficit the largest since Sept 2011 but might have been distorted from the Diamond Jubilee holidays
Equities
Indices: FTSE 100 flat at 5847, DAX -0.20% at 6955, CAC-40 +0.10% at 3442, IBEX-35 +0.20% at 7162, FTSE MIB flat at 14,663, SMI +0.60% at 6499, S&P 500 Futures +0.10% at 1399.75
Following the higher open, European equity indices have pared their gains amid profit taking and the release of weaker than expected monthly industrial production and retails sales data out of China. Additionally, recent pricing data out of China has led to some deflation concerns, as the July PPI index had the biggest drop since Oct 2009, while the monthly CPI index hit the lowest level since early 2010. European banks are trading mixed. Outperformers in the sector include Intesa, Standard Chartered and SocGen, while laggards include Commerzbank and RBS. Resource-related companies are mostly higher, tracking the earlier gains seen in the Chinese equity markets, amid hopes that weaker data out of the country will lead to additional stimulus measures.
Shares of UK listed HMV [HMV.UK] have risen by over 10%, following the release of FY results. Randgold [RRS.UK] has gained over 2% on better than expected Q2 results. In other UK movers, engineering/consulting firm AMEC [AMEC.UK] has lost over 4% (issued H1 results), while retailer French Connection [FCCN.UK] is higher by over 2% (issued H1 trading update). In Germany, Deutsche Telekom [DTE.DE], has traded lower by over 2%, as the company's Q2 net profit missed analyst expectations. Automaker Porsche [PAH3.DE] is down by over 3.5%, following reports that a court in the US had rejected the company's motion to dismiss a lawsuit brought by various hedge funds. Shares of Commerzbank [CBK.DE] have declined by more than 3%, as the company guided its H2 net profit to be below the level seen in H1. In other German movers, SMA solar [S92.DE] is lower by over 4%(reported Q2 results) and chemical manufacturer Symrise [SY1.DE] is higher by more than 2% (issued Q2 results, raised FY sales forecast). Shares of Nestle [NESN.CH] have gained over 1% on better than expected H1 results, while staffing firm Adecco [ADEN.CH] has lost over 2%, as the company made cautious comments about its July sales due to its business in France and Japan.
Norwegian oil services firm Subsea 7 [SUBC.NO is higher by more than 4% on better than expected Q2 results. Danish diabetes treatment provider Novo Nordisk [NOVOB.DK] is up by over 3%, as the company reported higher than expected Q2 results and raised its FY forecast. Dutch insurer Aegon [AGN.NL] has gained over 4% on better than expected Q2 results.