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Wednesday's European Market Update

By Trade The NewsMarket OverviewApr 03, 2013 07:10AM ET's-european-market-update-161472
Wednesday's European Market Update
By Trade The News   |  Apr 03, 2013 07:10AM ET
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  • Euro-Zone CPI slows to lowest level since Aug 2010 ahead of Thurs ECB meeting
  • China: Mar PMI non-mfg rises to 55.6 from 54.5
  • China: Mar HSBC PMI Services rises to 54.3 from 52.1
  • Australia Feb Trade Balance a bit better than expectations but registers its 14th consecutive month of deficit
  • Markets await decision from new BoJ Gov Kuroda on Thursday, JPY off one-month highs while Nikkei225 Index surges 3%
  • Australia Treasurer Swan: To reappoint RBA Gov Stevens for a 3-year term (Note: standard would be a 7-year term)
  • BoJ said to be leaning toward pushing forward the start of open-ended asset purchases immediately compared to prior view of Jan 2014
  • Beijing govt unveils more details related to 20% capital gains tax on property sellers
  • Thailand keeps interest rate steady as expected
  • UK Mar PMI Construction misses expectations (47.2 v 48.0e)
  • BoE Lending Survey suggested that small companies benefiting less than medium, large firms from FLS
  • IMF reached agreement to contribute €1.0B to Cyprus bailout
  • Euro Zone Mar flash CPI a touch hotter than expected at 1.7% but still lowest level since Aug 2010; ECB expected to hold steady on Thursday
  • German five-year BOBL auction seen solid despite yield being the lowest yield since Aug 2012
  • Remainder of the week sees a full economic calendar with ADP employment today
Economic Data
  • (NO) Norway Mar PMI Survey: 50.1 v 49.0e
  • (RO) Romania Q4 Final GDP Q/Q: 0.3% v 0.1% prelim; Y/Y: 1.1 v 0.3% prelim
  • (TR) Turkey Mar Consumer Prices M/M: 0.7% v 0.4%e; Y/Y: 7.3% v 7.0%e; CPI Core Y/Y: 5.8% v 5.8% prior
  • (TR) Turkey Mar Producer Prices M/M: +0.8% v -0.1% prior; Y/Y: 2.3% v 1.8% prior
  • (EU) ECB: €746M borrowed in overnight loan facility vs. €1.5B prior; €146.2B parked in deposit facility vs. €144.9B prior
  • (TH) Thailand Central Bank (BOT) leaves Benchmark Interest unchanged at 2.75%, as expected
  • (BR) Brazil Mar FIPE CPI Monthly: -0.2% v -0.2%e
  • (NO) Norway Jan AKU Unemployment Rate: 3.6% v 3.6%e
  • (CN) China Q4 Current Account Surplus revised lower to $45.1B from $65.0B prelim - FX Regulator SAFE
  • (TW) Taiwan Mar Foreign Exchange Reserves: $401.9B v $404.1B prior
  • (UK) Mar PMI Construction: 47.2 v 48.0e
  • (EU) Euro Zone Mar CPI Estimate Y/Y: 1.7% v 1.6%e, lowest level since Aug 2010
  • (ZA) South Africa Sacci Business Confidence: 90.4 v 93.0 prior
Fixed Income
  • (IN) India sold total INR100B vs. INR100B in 3-month and 12-month Bills
  • (EU) ECB allotted $1.2B in 7-Day USD Liquidity Tender at fixed 0.65% vs. $505M prior
  • (SE) Sweden sold SEK3.5B vs. SEK3.5B indicated in 2023 bond; Yield: 1.8490% v 2.1564% prior
  • (DE) Germany sold €3.28B in 0.5% 2018 BOBLs; Avg Yield: 0.33% (lowest yield since Aug) vs. 0.45% prior; Bid-of-cover: 1.90x v 1.93x prior

Indices: FTSE 100 -0.40% at 6,466, DAX -0.10% at 7,933, CAC-40 -0.20% at 3,798, IBEX-35 -0.40% at 8,017, FTSE MIB -0.60% at 15,469, SMI +0.40% at 7,928, S&P 500 Futures +0.20% at 1,567

Following the gains seen on Tuesday's session, European equity markets are mostly lower, led by declines on the Spanish IBEX-35 and Italian FTSE-MIB. European banks are mostly lower by RBS, Santander and UniCredit. Additionally, Greek banks are lower by over 5% on continued concerns related to their capital plans and exposures to Cyprus. Resource related companies are broadly lower, in line with the declines being seen for commodity prices. Overall traders are continuing to await events due later in the week, including rate decisions by the BoJ, ECB and BoE. Additionally, the government formation process in Italy remains in focus.

UK movers [Thorntons +6% (raised outlook), Schroders +3% (broker commentary),Pennon Group +2.5% (takeover speculation); Ocado -2.5% (broker commentary), Vodafone -1.5% (Verizon played down merger speculation); ]

Germany movers [BASF +1% (broker commentary), Most automakers are higher following the release of monthly US vehicle sales; United Internet -1% (broker commentary)]

France movers [Rexel +1.5% (broker commentary); France Telecom -3% (broker commentary), EADS -0.50% (buyback size below expectations)]

Switzerland movers [Panalpina +11% (new CEO); Meyer Burger -2.5% (disclosed details related to capital raise)]

Italy movers [Telecom Italia -3% (broker commentary)]
Wednesday's European Market Update

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Wednesday's European Market Update

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