Risk on sentiment continued to brew aiding by continued hope of a formal request by Spain for aid
Economic Data
(EU) Sept EU27 New Car Registrations: -10.8% v -8.9% prior (biggest decline in 2 years)
(TR) Turkey Sept Consumer Confidence: 88.8 v 91.1prior; lowest reading since Aug 2010)
(EU) ECB: €1.97B borrowed in overnight loan facility v €1.3B prior; €251.4B parked in deposit facility vs. €260.5B prior
(NL) Netherlands Aug Retail Sales Y/Y: +0.9% v -3.9% prior
(AT) Austria Sept Consumer Price Index M/M: 0.9% v 0.3% prior; Y/Y: 2.7% v 2.2% prior
(IT) Italy Aug Total Trade Balance: -€0.6B v +€4.5B prior; Trade Balance EU: €0.4B v €2.7B prior
(UK) Aug ONS House Price Y/Y: 1.8% v 1.9%e
(UK) Sept PPI Input M/M: -0.2% v +0.2%e; Y/Y: -1.2% v -0.6%e
(UK) Sept PPI Output M/M: 0.5% v 0.3%e; Y/Y: 2.5% v 2.2%e
(UK) Sept PPI Output Core M/M: 0.3% v 0.1%e; Y/Y: 1.2% v 1.0%e
(UK) Sept CPI M/M: 0.4% v 0.4%e; Y/Y: 2.2% v 2.2%e; Core CPI Y/Y: 2.1% v 2.1%e
(UK) Sept RPI M/M: 0.5% v 0.5%e; Y/Y: 2.6% v 2.6%e; Core RPI-X Y/Y: 2.6% v 2.6%e; Retail Price Index: 244.2 v 244.1e
(EU) Euro Zone Sept CPI M/M: 0.7% v 0.7%e; Y/Y: 2.6% v 2.7%e; CPI Core Y/Y: 1.5% v 1.6%e
(DE) Germany Oct ZEW Economic Sentiment: -11.5 v -14.9e; Current Situation: 10.0 v 11.8e
(EU) Euro Zone Aug Trade Balance seasonally adj: €9.9B v €8.2Be; Trade Balance Unadj: €6.6B v €10.0Be
(EU) Euro Zone Oct ZEW Economic Sentiment: -1.4 v -3.8 prior
Fixed Income
(ES) Spain Debt Agency (Tesoro) sold total €4.86B vs. €3.5-4.5B indicated range in 12-Month and 18-Month Bills
Sold €3.4B in 12-month Bills; Avg Yield: 2.823% v 2.835% prior; Bid-to-cover: 2.71x v 2.03x prior; Max Yield 2.860% v 2.978% prior; Tail: 3.7 bps vs. 14.3 bps prior
Sold €1.46B in 18-month Bills; Avg Yield 3.022% v 3.072% prior; Bid-to-cover: 3.04x v 3.56x prior; Max Yield 3.070% v 3.150% prior; Tail: 4.8 bps v 7.8 bps prior
(GR) Greece Debt Agency (PDMA) sold €1.63B vs. €1.25B indicated in 13-week Bills; Avg Yield 4.24% v 4.31% prior; Bid-to-cover: 1.90x v 1.98x prior
(ZA) South Africa sold total ZAR2.1B vs. ZAR2.1B indicated in 2023, 2041 and 2048 bonds
(EU) ECB allotted €91.8B vs. €90.0Bein 7-Day Main Refinancing Tender at fixed 0.75%
(CH) Switzerland sold CHF790.9M in 3-Month Bills; Avg Yield -0.221% v -0.221% prior
(HU) Hungary Debt Agency (AKK) sold HUF60B vs. HUF45B indicated in 3-Month Bills; Avg Yield 6.12% v 6.40% prior; Bid-to-cover: 2.21x v 2.32x prior
(BE) Belgium Debt Agency sold total €3.11B vs. €2.8-3.2B indicated range in 3-month and 12-month Bills
Sold €1.503B in 3-month Bills; Avg Yield -0.010% v -0.003% prior; Bid-to-cover: 3.12x v 2.32x prior
Sold €1.605B in 12-month Bills; Avg yield +0.072% v +0.095% prior; Bid-to-cover: 2.17x v 1.98x prior
Notes/Observations
New Zealand inflation 13-year lows and below the central bank target
RBA minutes hint of room to further lower rates
ESM putting its funds to work in the short-end of the market
Risk on sentiment continued to brew helped by an FT report that Spain was considering requesting a line of credit from the ESM bailout mechanism
UK Sept CPI at lowest level in 3-year and slightly above BOE target
Spain sells more than the indicated amount at its Bill auction with slightly lower yields
German ZEW Survey mixed while ZEW economists noted that ECB OMT bond buying program had not improved sentiment for the euro area
Equities
Indices: FTSE 100 +0.50% at 5,833, DAX +0.50% at 7,297, CAC-40 +0.30% at 3,432, IBEX-35 +1.2% at 7,768, FTSE MIB +0.20% at 15,613, SMI +0.30% at 6,726, S&P 500 Futures flat at 1,436
European bourses are broadly higher, tracking yesterday's gains in the US equity markets. So far, today's upside has been led by the Spanish IBEX, as Spain sold bills at lower yields. Banks are mostly higher and outperformers include BNP, Commerzbank, Deutsche Bank and Lloyds. Resource related firms are trading higher, amid the rise in commodity prices.
UK home builder Bellway [BWY.UK] has gained over 4%, following the release of its FY results. SportingBet [SBT.UK] is slightly higher, after the firmed received a higher bid from William Hill [WMH.UK]. In Switzerland, shares of Roche [ROG.CH] have moved slightly higher as the company reported better than expected Q3 sales and reaffirmed its FY sales forecast. In France, luxury goods manufacturer LVMH [MC.FR] has declined, as it reported a slowdown in its Q3 sales. Casino [CO.FR] is lower by over 1%, following the release of its Q3 sales. In Norway, silicon wafer producer Renewable Energy [REC.NO] has lost over 15%, as the company issued a profit warning for Q3.
FTSE 100 movers (Lloyds +2.9%, Kazakhmys +2.3%, Randgold +1.9%, Antofagasta +1.8%, Evraz +1.8%; GKN -2.9%, InterContinental Hotels -1.8%, IAG -1.7%)
CAC-40 movers (SocGen +2%, BNP +2%, Credit Agricole +2%, Lafarge +1.9%, ArcelorMittal +1.7%; Renault -1.6%, St-Gobain -1.5%, LVMH -1.1%)
DAX movers (Deutsche Bank +2.7%, Infineon +2.2%, Commerzbank +1.9%, Bayer +1.6%, Beiersdorf +1%; Continental AG -1.9%, Daimler -1%)
IBEX-35 movers (Santander +2.3%, BBVA +2.1%, Acciona +2%, Repsol +1.9%, Gamesa +1.7%; Fomento -1.5%, Red Electrica -1.1%, Abertis -1%)
FTSE MIB movers (Mediaset +2.9%, Generali +1.6%, Intesa +1.6%, Banca Popolare di Milano +1.3%, A2A +1.2%; Lottomatica -2.4%, Tenaris -1.9%, Luxottica -1.5%, Pirelli -1.4%, Fiat -1%)
SMI movers (Adecco +1.7%, Julius Baer +1.3%, Swiss Re +1.2%, Transocean +1.2%. UBS +1.2%; Richemont -0.70%)
Economic Data
(EU) Sept EU27 New Car Registrations: -10.8% v -8.9% prior (biggest decline in 2 years)
(TR) Turkey Sept Consumer Confidence: 88.8 v 91.1prior; lowest reading since Aug 2010)
(EU) ECB: €1.97B borrowed in overnight loan facility v €1.3B prior; €251.4B parked in deposit facility vs. €260.5B prior
(NL) Netherlands Aug Retail Sales Y/Y: +0.9% v -3.9% prior
(AT) Austria Sept Consumer Price Index M/M: 0.9% v 0.3% prior; Y/Y: 2.7% v 2.2% prior
(IT) Italy Aug Total Trade Balance: -€0.6B v +€4.5B prior; Trade Balance EU: €0.4B v €2.7B prior
(UK) Aug ONS House Price Y/Y: 1.8% v 1.9%e
(UK) Sept PPI Input M/M: -0.2% v +0.2%e; Y/Y: -1.2% v -0.6%e
(UK) Sept PPI Output M/M: 0.5% v 0.3%e; Y/Y: 2.5% v 2.2%e
(UK) Sept PPI Output Core M/M: 0.3% v 0.1%e; Y/Y: 1.2% v 1.0%e
(UK) Sept CPI M/M: 0.4% v 0.4%e; Y/Y: 2.2% v 2.2%e; Core CPI Y/Y: 2.1% v 2.1%e
(UK) Sept RPI M/M: 0.5% v 0.5%e; Y/Y: 2.6% v 2.6%e; Core RPI-X Y/Y: 2.6% v 2.6%e; Retail Price Index: 244.2 v 244.1e
(EU) Euro Zone Sept CPI M/M: 0.7% v 0.7%e; Y/Y: 2.6% v 2.7%e; CPI Core Y/Y: 1.5% v 1.6%e
(DE) Germany Oct ZEW Economic Sentiment: -11.5 v -14.9e; Current Situation: 10.0 v 11.8e
(EU) Euro Zone Aug Trade Balance seasonally adj: €9.9B v €8.2Be; Trade Balance Unadj: €6.6B v €10.0Be
(EU) Euro Zone Oct ZEW Economic Sentiment: -1.4 v -3.8 prior
Fixed Income
(ES) Spain Debt Agency (Tesoro) sold total €4.86B vs. €3.5-4.5B indicated range in 12-Month and 18-Month Bills
Sold €3.4B in 12-month Bills; Avg Yield: 2.823% v 2.835% prior; Bid-to-cover: 2.71x v 2.03x prior; Max Yield 2.860% v 2.978% prior; Tail: 3.7 bps vs. 14.3 bps prior
Sold €1.46B in 18-month Bills; Avg Yield 3.022% v 3.072% prior; Bid-to-cover: 3.04x v 3.56x prior; Max Yield 3.070% v 3.150% prior; Tail: 4.8 bps v 7.8 bps prior
(GR) Greece Debt Agency (PDMA) sold €1.63B vs. €1.25B indicated in 13-week Bills; Avg Yield 4.24% v 4.31% prior; Bid-to-cover: 1.90x v 1.98x prior
(ZA) South Africa sold total ZAR2.1B vs. ZAR2.1B indicated in 2023, 2041 and 2048 bonds
(EU) ECB allotted €91.8B vs. €90.0Bein 7-Day Main Refinancing Tender at fixed 0.75%
(CH) Switzerland sold CHF790.9M in 3-Month Bills; Avg Yield -0.221% v -0.221% prior
(HU) Hungary Debt Agency (AKK) sold HUF60B vs. HUF45B indicated in 3-Month Bills; Avg Yield 6.12% v 6.40% prior; Bid-to-cover: 2.21x v 2.32x prior
(BE) Belgium Debt Agency sold total €3.11B vs. €2.8-3.2B indicated range in 3-month and 12-month Bills
Sold €1.503B in 3-month Bills; Avg Yield -0.010% v -0.003% prior; Bid-to-cover: 3.12x v 2.32x prior
Sold €1.605B in 12-month Bills; Avg yield +0.072% v +0.095% prior; Bid-to-cover: 2.17x v 1.98x prior
Notes/Observations
New Zealand inflation 13-year lows and below the central bank target
RBA minutes hint of room to further lower rates
ESM putting its funds to work in the short-end of the market
Risk on sentiment continued to brew helped by an FT report that Spain was considering requesting a line of credit from the ESM bailout mechanism
UK Sept CPI at lowest level in 3-year and slightly above BOE target
Spain sells more than the indicated amount at its Bill auction with slightly lower yields
German ZEW Survey mixed while ZEW economists noted that ECB OMT bond buying program had not improved sentiment for the euro area
Equities
Indices: FTSE 100 +0.50% at 5,833, DAX +0.50% at 7,297, CAC-40 +0.30% at 3,432, IBEX-35 +1.2% at 7,768, FTSE MIB +0.20% at 15,613, SMI +0.30% at 6,726, S&P 500 Futures flat at 1,436
European bourses are broadly higher, tracking yesterday's gains in the US equity markets. So far, today's upside has been led by the Spanish IBEX, as Spain sold bills at lower yields. Banks are mostly higher and outperformers include BNP, Commerzbank, Deutsche Bank and Lloyds. Resource related firms are trading higher, amid the rise in commodity prices.
UK home builder Bellway [BWY.UK] has gained over 4%, following the release of its FY results. SportingBet [SBT.UK] is slightly higher, after the firmed received a higher bid from William Hill [WMH.UK]. In Switzerland, shares of Roche [ROG.CH] have moved slightly higher as the company reported better than expected Q3 sales and reaffirmed its FY sales forecast. In France, luxury goods manufacturer LVMH [MC.FR] has declined, as it reported a slowdown in its Q3 sales. Casino [CO.FR] is lower by over 1%, following the release of its Q3 sales. In Norway, silicon wafer producer Renewable Energy [REC.NO] has lost over 15%, as the company issued a profit warning for Q3.
FTSE 100 movers (Lloyds +2.9%, Kazakhmys +2.3%, Randgold +1.9%, Antofagasta +1.8%, Evraz +1.8%; GKN -2.9%, InterContinental Hotels -1.8%, IAG -1.7%)
CAC-40 movers (SocGen +2%, BNP +2%, Credit Agricole +2%, Lafarge +1.9%, ArcelorMittal +1.7%; Renault -1.6%, St-Gobain -1.5%, LVMH -1.1%)
DAX movers (Deutsche Bank +2.7%, Infineon +2.2%, Commerzbank +1.9%, Bayer +1.6%, Beiersdorf +1%; Continental AG -1.9%, Daimler -1%)
IBEX-35 movers (Santander +2.3%, BBVA +2.1%, Acciona +2%, Repsol +1.9%, Gamesa +1.7%; Fomento -1.5%, Red Electrica -1.1%, Abertis -1%)
FTSE MIB movers (Mediaset +2.9%, Generali +1.6%, Intesa +1.6%, Banca Popolare di Milano +1.3%, A2A +1.2%; Lottomatica -2.4%, Tenaris -1.9%, Luxottica -1.5%, Pirelli -1.4%, Fiat -1%)
SMI movers (Adecco +1.7%, Julius Baer +1.3%, Swiss Re +1.2%, Transocean +1.2%. UBS +1.2%; Richemont -0.70%)