New York:
May 24 9:50 | London:
May 24 14:50 | Tokyo:
May 24 22:50
Hear it. See it. Profit.
TradeTheNews.com is a members only financial intelligence network for professional
traders globally.
Apply for a Complimentary Guest Pass
Apply for a Complimentary Guest Pass
| Europe | • | Americas | • | Asia | • | Weekly Wrap Up | • | Monthly | • | Sign In | Listen Live with a Free Guest Pass |
EU Market Update TRADETHENEWS.COM STAFF
Concerns over upcoming corporate earnings season provides excuse for profit taking
Economic Data
- (CH) Swiss Sept Unemployment Rate: 2.8% v 2.8%e; Unemployment Rate Seasonally Adj: 2.9% v 3.0%e
- (FI) Finland Aug Preliminary Trade Balance: €0M (flat) v €21M prior
- (DE) Germany Aug Current Account: €11.1B v €12.7Be; Trade Balance: €16.3B v €15.2Be; Exports M/M: +2.4% v -0.6%e; Imports M/M: +0.3% v +0.2%e
- (FR) Bank of France Sept Business Confidence: 92 v 91e
- (CZ) Czech Aug Industrial Output Y/Y: -3.1% v 0.0%e; Construction Output Y/Y: -3.2 v -0.5% prior
- (CZ) Czech Sept Unemployment Rate: 8.4% v 8.3%e
- (CZ) Czech Aug Trade Balance (CZK): 16.9B v 15.3Be
- (CH) Swiss Sept CPI M/M: 0.3% v 0.3%e; Y/Y: -0.4% v -0.4%e
- (CH) Swiss Sept CPI EU Harmonized M/M: +0.7% v -0.3% prior; Y/Y: -0.3% v -0.5% prior
- (RU) Russia Sept Light Vehicle & Car Sales: Y/Y: 10% v 15% prior
- (TW) Taiwan Sept Total Trade Balance: $4.1B v $2.3Be; Total Exports Y/Y: +10.4% v +1.0%e; Total Imports Y/Y: +1.3% v -3.6%e
- (EU) Euro Zone Oct Sentix Investor Confidence: -22.2 v -20.9e
- (HK) Hong Kong Sept Foreign Currency Reserves: $301.2B v $298.2Bprior
- (SG) Singapore Sept Foreign Reserves: $252.2B v $246.2B prior
- (DE) Germany Aug Industrial Production M/M: -0.5% v -0.6%e; Y/Y: -1.4% v -1.6%e
- (PT) Portugal Aug Industrial Sales M/M: -14.5% v 1.8% prior; Y/Y: -1.6 v -4.0% prior
- (EU) OECD Aug Leading Indicators: 100.1 v 100.2 prior
Fixed Income
- (NO) Norway sold NOK3B in 5.0% May 2015 Bonds; Yield 1.43% v 1.83% prior; bid-to-cover: 3.96x v 1.98x prior
- (DE) Germany sold €2.42B in 6-Month BuBills; Avg Yield -0.0218% v -0.0147 prior; Bid-to-cover: 2.3x v 1.5x prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Notes/Observations
- Venezuela President Chavez wins 3rd 6-year term.
- World Bank cuts Asian region growth estimates. AUD currency hits 3 month lows.
- US Q3 earning season kicks off this week
- EU Finance Ministers meet in Luxembourg today. ESM expected to become operational
- German Chancellor Merkel visits Athens on Tuesday for talk with PM Samaras (Her first visit in over 3 years)
Equities
-Indices: FTSE 100 -0.60% at 5,836, DAX -1.1% at 7,313, CAC-40 -1.1% at 3,418, IBEX-35 -0.90% at 7,879, FTSE MIB -1.4% at 15,653, SMI -0.40% at 6,646, S&P 500 Futures -0.30% at 1,451
-Following the declines in the Shanghai composite, European equity indices are broadly lower, led by the weakness in the Italian FTSE MIB and German DAX. Overall, equities are declining, despite the stabilization being seen for the euro zone peripheral bond yields. Factors on which traders are focusing include upcoming Q3 earnings reports, EU finance minister meetings, slowing global growth and the strength in the US dollar (following Friday's US payrolls report). Banks are broadly lower, led by Italian financials, as data from the Bank of Italy showed that bad loans continued to rise sharply in Aug. Additionally, Italian banks cut their exposures to sovereign debt in the month. Other laggards in the banking sector include Bankia, Commerzbank, Credit Agricole, RBS and SocGen. Greek banks have outperformed amid merger speculation in the sector and the decline in Greece's sovereign bond yields. In terms of corporate bonds, various peripheral companies have come to market on the session including Enel and Intesa.
- UK-listed staffing firm Michael Page [MPI.UK] is lower by over 3%, after warning that its full year results could come in below market expectations. Materials technology firm Cookson [CKSN.UK] has lost over 13%, as the company warned on the outlook for its engineered ceramics unit. In Italy, RCS Mediagroup [RCS.IT] has gained over 3% on renewed speculation that Diego Della Valle is seeking to raise his stake. Belgium-listed KBC [KBC.BE] is lower by over 3%, as the firm issued its strategy update. Shares of PPR [PP.FR] have advanced by over 1% on speculation that the firm is examining options for its Fnac unit. Swiss retailer Charles Voegele [VCH.CH] is higher by more than 10%on takeover speculation.
- FTSE 100 movers (Evraz -4.7%, Vedanta -3.5%, ENRC -3.3%, Melrose PLC -2.8%, Kazakhmys -2.8%)
- CAC-40 movers (St-Gobain -2.6%, Renault -2.5%, Vallourec -2.5%, SocGen -2.4%, Alcatel-Lucent -2.2%; PPR +2.3%)
- DAX movers (Commerzbank -2.6%, Lanxess -2.5%, Daimler -2.4%, Infineon -2.1%, ThyssenKrupp -2%)
- IBEX-35 movers (Banco Popular -5.4%, Bankia -5.3%, Sacyr -3.2%, Acciona -2.5%, Acerinox -2.3%)
- FTSE MIB movers (Fiat -2.7%, Intesa -2.4%, Banca Monte Paschi de Siena -2.2%, Fiat Industrial -2.1%)
- SMI movers (Credit Suisse -2.2%, Richemont -2%, Adecco -1.9%, Swatch -1.9%, UBS -1.6%)
Speakers:
- Poland Central Bank Glapinski (hawkish) commented in the Polish press that he might support a Base Rate cut in Nov if CPI and GDP slowed. He saw the central bank cutting the Base Rate in three steps of 25bps each
- Poland Central Banker Chojna-Duch commented that the Nov projections might confirm a deeper slowdown and saw Q4 growth around 1.5%. She noted that the central bank should seriously consider a series of interest rate cuts
- Poland Central Banker Zielinska stated that a rate cut in November was not set in stone and such a move would not be an obvious GDP stimulus. She saw moderate rate cut if CPI slowdown was confirmed and reiterates the view that Poland would not slip into recession
- UK Office for Budget Responsibility (OBR) is expected to suggest that the UK's austerity measures could be needed until 2018 as higher borrowing and lower growth could force the OBR to question the government's pledge to have public debt decline by 2015-2016.
- Denmark PM Thorning-Schmidt commented that Europe had shown commitment to ending crisis and added that Denmark could clearly maintain peg to the euro
- Norway released its Fiscal Budget for 2013 which forecasted an overall surplus of NOK380B. It saw its Oil fund at NOK4.28T at end of 2013. The budget forecasted 2013 Non-oil GDP at 2.9% and overall GDP at 2.5%
- Bank of International Settlements (BIS) stated that it was clear that not all jurisdictions would be ready in time for Basel III
- India Finance Ministry Report: Headline inflation in India will remain at 7.5% to 8% into early 2013 before moderating
- World Bank cut Russia's 2012 and 2013 GDP growth forecasts with 2012 growth now forecast at 3.5% from 3.9% and 2013 GDP forecast at 3.6% from 4.1%
- China Foreign Ministry spokesperson Lee commented that the: US needed to do more to promote trade and economic ties
Currencies:
- The USD and JPY currencies were firmer against the European pairs in the session on some simmering risk aversion sentiment. World Bank cut China's GDP forecast during Asian session and dealers noted that upcoming corporate earnings season could disappoint and provided an excuse for equity markets to retrace.
- The EUR/USD remained below the 1.30 handle and around 60 pips lower from its Far East open. The EUR/JPY cross was at 101.40 just ahead of the NY morning. USD/JPY hovered just above the 78 handle.
- The GBP currency was by weighed down by reports that the UK Office for Budget Responsibility (OBR) would suggest that the UK's austerity measures be extended until 2018
Political/ In the Papers:
- (EU) ECB's Coeure: Euro zone to return to growth in 2013 - financial press
- (EU) Former ECB official Stark continues to be critical of the ECB's bond buying plan (OMT) - German Press
- (EU) IFO/Insee/Istat cut EMU Q3 GDP forecast to -0.2% from -0.1% in July; forecast Q4 EMU GDP -0.1%; Revise end of Q3 EMU inflation to 2.7% from 2.0% in July, forecast Q4 EMU inflation 2.3%
- (EU) Certain officials have proposed a €20B budget for euro-zone countries - German Press
- (EU) UK PM Cameron threatened to veto the EU budget - BBC; The British PM said he would veto a new EU budget if necessary, and that in the long-term the EU should have two different budgets: one for countries in the EU; and one for those outside the single currency.
- (EU) 57% of EU companies have liquidity problems due to debt defaults - ABC
- (EU) Investors in Asian have been buying European hybrid securities - FT
- (FR) Vote on EU budget pact to test France President Hollande - financial press; Note: On Tuesday France National Assembly to vote on a EU treaty.
- (EU) ECB's Asmussen: Sees no risk of inflation or currency depreciation - German press; Says German "inflation is less than at the time of the deutschmark"; presently stands at 1.6%.
- (DE) German Chancellor Merkel continues to face critics within her own party regarding euro zone rescue measures - FT
- (GR) IMF's Lagarde: Talks with the Greek govt has been very productive - financial press
- (GR) Greece finance ministry: Reiterates view that it would continue negotiations with international creditors next week - financial press
- (GR) German govt spokesperson Seibert: We want to help Greece stabilize within the euro zone; Germany is "contributing massively to the rescue programs Greece I and Greece II" - financial press
- (PT) Portugal to receive another year from Troika to meet the 3% GDP deficit target - Economico
- (IE) The global slowdown could make it more difficult for Ireland to meet its budget targets - US financial press
- (ES) US hedge funds have been purchasing Spain govt bonds - Times
Looking Ahead
All times listed for economic events are denominated in Eastern Standard Time (Add 4 hours for GMT equivalent)
- 06:00 (UK) Chancellor Osborne speaks at U.K. Tory Party Conference
- 06:30 (US) Daily Libor Fixing
- 07:00 (BR) Brazil Sept FGV Inflation IGP-DI: 0.8%e v 1.3% prior
- 07:15 (EU) EU's Reichenbach speaks on Greece at Think Tank
- 07:30 (BR) Brazil Central Bank Weekly Economists Survey
- 07:30 (CL) Chile Sept Trade Balance: -$293Me v -$843.0M prior; Total Exports: No est v $5.9B prior; Total Imports: No est v $6.7B prior
- 07:30 (CL) Chile Sept Copper Exports: No est v $3.0B prior
- 08:00 (RO) Romania to Sell Bills
- 09:00 (FR) France Debt Agency (AFT) to sell up to €7.0B in 3-month, 6-month and 12-month bills
- 09:30 (EU) ECB calls for bids in 7-Day Main Refinancing Tender
- 09:30 (EU) ECB announces weekly settlements in Govt Bond Purchases
- 09:45 (UK) BOE to buy £1.0B 2015-2019 Gilts in reverse auction
- 10:00 (HU) Hungary Sept Budget Balance (HUF): No est v v -559.5B prior
- 11:00 (EU) Euro-Area Finance Ministers meet in Luxembourg
- 16:00 (EU) Eurogroup press conference
- 17:00 (CO) Colombia Aug Exports: No est v $4.7B
- 17:30 IMF updates its World Economic Outlook
- 19:50 (JP) Japan Aug Trade Balance: -¥628.6Be v -¥373.6B prior; Total Current Account Balance: ¥421.1Be v ¥625.4B prior
- (CH) Swiss Sept Unemployment Rate: 2.8% v 2.8%e; Unemployment Rate Seasonally Adj: 2.9% v 3.0%e
- (FI) Finland Aug Preliminary Trade Balance: €0M (flat) v €21M prior
- (DE) Germany Aug Current Account: €11.1B v €12.7Be; Trade Balance: €16.3B v €15.2Be; Exports M/M: +2.4% v -0.6%e; Imports M/M: +0.3% v +0.2%e
- (FR) Bank of France Sept Business Confidence: 92 v 91e
- (CZ) Czech Aug Industrial Output Y/Y: -3.1% v 0.0%e; Construction Output Y/Y: -3.2 v -0.5% prior
- (CZ) Czech Sept Unemployment Rate: 8.4% v 8.3%e
- (CZ) Czech Aug Trade Balance (CZK): 16.9B v 15.3Be
- (CH) Swiss Sept CPI M/M: 0.3% v 0.3%e; Y/Y: -0.4% v -0.4%e
- (CH) Swiss Sept CPI EU Harmonized M/M: +0.7% v -0.3% prior; Y/Y: -0.3% v -0.5% prior
- (RU) Russia Sept Light Vehicle & Car Sales: Y/Y: 10% v 15% prior
- (TW) Taiwan Sept Total Trade Balance: $4.1B v $2.3Be; Total Exports Y/Y: +10.4% v +1.0%e; Total Imports Y/Y: +1.3% v -3.6%e
- (EU) Euro Zone Oct Sentix Investor Confidence: -22.2 v -20.9e
- (HK) Hong Kong Sept Foreign Currency Reserves: $301.2B v $298.2Bprior
- (SG) Singapore Sept Foreign Reserves: $252.2B v $246.2B prior
- (DE) Germany Aug Industrial Production M/M: -0.5% v -0.6%e; Y/Y: -1.4% v -1.6%e
- (PT) Portugal Aug Industrial Sales M/M: -14.5% v 1.8% prior; Y/Y: -1.6 v -4.0% prior
- (EU) OECD Aug Leading Indicators: 100.1 v 100.2 prior
Fixed Income
- (NO) Norway sold NOK3B in 5.0% May 2015 Bonds; Yield 1.43% v 1.83% prior; bid-to-cover: 3.96x v 1.98x prior
- (DE) Germany sold €2.42B in 6-Month BuBills; Avg Yield -0.0218% v -0.0147 prior; Bid-to-cover: 2.3x v 1.5x prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Notes/Observations
- Venezuela President Chavez wins 3rd 6-year term.
- World Bank cuts Asian region growth estimates. AUD currency hits 3 month lows.
- US Q3 earning season kicks off this week
- EU Finance Ministers meet in Luxembourg today. ESM expected to become operational
- German Chancellor Merkel visits Athens on Tuesday for talk with PM Samaras (Her first visit in over 3 years)
Equities
-Indices: FTSE 100 -0.60% at 5,836, DAX -1.1% at 7,313, CAC-40 -1.1% at 3,418, IBEX-35 -0.90% at 7,879, FTSE MIB -1.4% at 15,653, SMI -0.40% at 6,646, S&P 500 Futures -0.30% at 1,451
-Following the declines in the Shanghai composite, European equity indices are broadly lower, led by the weakness in the Italian FTSE MIB and German DAX. Overall, equities are declining, despite the stabilization being seen for the euro zone peripheral bond yields. Factors on which traders are focusing include upcoming Q3 earnings reports, EU finance minister meetings, slowing global growth and the strength in the US dollar (following Friday's US payrolls report). Banks are broadly lower, led by Italian financials, as data from the Bank of Italy showed that bad loans continued to rise sharply in Aug. Additionally, Italian banks cut their exposures to sovereign debt in the month. Other laggards in the banking sector include Bankia, Commerzbank, Credit Agricole, RBS and SocGen. Greek banks have outperformed amid merger speculation in the sector and the decline in Greece's sovereign bond yields. In terms of corporate bonds, various peripheral companies have come to market on the session including Enel and Intesa.
- UK-listed staffing firm Michael Page [MPI.UK] is lower by over 3%, after warning that its full year results could come in below market expectations. Materials technology firm Cookson [CKSN.UK] has lost over 13%, as the company warned on the outlook for its engineered ceramics unit. In Italy, RCS Mediagroup [RCS.IT] has gained over 3% on renewed speculation that Diego Della Valle is seeking to raise his stake. Belgium-listed KBC [KBC.BE] is lower by over 3%, as the firm issued its strategy update. Shares of PPR [PP.FR] have advanced by over 1% on speculation that the firm is examining options for its Fnac unit. Swiss retailer Charles Voegele [VCH.CH] is higher by more than 10%on takeover speculation.
- FTSE 100 movers (Evraz -4.7%, Vedanta -3.5%, ENRC -3.3%, Melrose PLC -2.8%, Kazakhmys -2.8%)
- CAC-40 movers (St-Gobain -2.6%, Renault -2.5%, Vallourec -2.5%, SocGen -2.4%, Alcatel-Lucent -2.2%; PPR +2.3%)
- DAX movers (Commerzbank -2.6%, Lanxess -2.5%, Daimler -2.4%, Infineon -2.1%, ThyssenKrupp -2%)
- IBEX-35 movers (Banco Popular -5.4%, Bankia -5.3%, Sacyr -3.2%, Acciona -2.5%, Acerinox -2.3%)
- FTSE MIB movers (Fiat -2.7%, Intesa -2.4%, Banca Monte Paschi de Siena -2.2%, Fiat Industrial -2.1%)
- SMI movers (Credit Suisse -2.2%, Richemont -2%, Adecco -1.9%, Swatch -1.9%, UBS -1.6%)
Speakers:
- Poland Central Bank Glapinski (hawkish) commented in the Polish press that he might support a Base Rate cut in Nov if CPI and GDP slowed. He saw the central bank cutting the Base Rate in three steps of 25bps each
- Poland Central Banker Chojna-Duch commented that the Nov projections might confirm a deeper slowdown and saw Q4 growth around 1.5%. She noted that the central bank should seriously consider a series of interest rate cuts
- Poland Central Banker Zielinska stated that a rate cut in November was not set in stone and such a move would not be an obvious GDP stimulus. She saw moderate rate cut if CPI slowdown was confirmed and reiterates the view that Poland would not slip into recession
- UK Office for Budget Responsibility (OBR) is expected to suggest that the UK's austerity measures could be needed until 2018 as higher borrowing and lower growth could force the OBR to question the government's pledge to have public debt decline by 2015-2016.
- Denmark PM Thorning-Schmidt commented that Europe had shown commitment to ending crisis and added that Denmark could clearly maintain peg to the euro
- Norway released its Fiscal Budget for 2013 which forecasted an overall surplus of NOK380B. It saw its Oil fund at NOK4.28T at end of 2013. The budget forecasted 2013 Non-oil GDP at 2.9% and overall GDP at 2.5%
- Bank of International Settlements (BIS) stated that it was clear that not all jurisdictions would be ready in time for Basel III
- India Finance Ministry Report: Headline inflation in India will remain at 7.5% to 8% into early 2013 before moderating
- World Bank cut Russia's 2012 and 2013 GDP growth forecasts with 2012 growth now forecast at 3.5% from 3.9% and 2013 GDP forecast at 3.6% from 4.1%
- China Foreign Ministry spokesperson Lee commented that the: US needed to do more to promote trade and economic ties
Currencies:
- The USD and JPY currencies were firmer against the European pairs in the session on some simmering risk aversion sentiment. World Bank cut China's GDP forecast during Asian session and dealers noted that upcoming corporate earnings season could disappoint and provided an excuse for equity markets to retrace.
- The EUR/USD remained below the 1.30 handle and around 60 pips lower from its Far East open. The EUR/JPY cross was at 101.40 just ahead of the NY morning. USD/JPY hovered just above the 78 handle.
- The GBP currency was by weighed down by reports that the UK Office for Budget Responsibility (OBR) would suggest that the UK's austerity measures be extended until 2018
Political/ In the Papers:
- (EU) ECB's Coeure: Euro zone to return to growth in 2013 - financial press
- (EU) Former ECB official Stark continues to be critical of the ECB's bond buying plan (OMT) - German Press
- (EU) IFO/Insee/Istat cut EMU Q3 GDP forecast to -0.2% from -0.1% in July; forecast Q4 EMU GDP -0.1%; Revise end of Q3 EMU inflation to 2.7% from 2.0% in July, forecast Q4 EMU inflation 2.3%
- (EU) Certain officials have proposed a €20B budget for euro-zone countries - German Press
- (EU) UK PM Cameron threatened to veto the EU budget - BBC; The British PM said he would veto a new EU budget if necessary, and that in the long-term the EU should have two different budgets: one for countries in the EU; and one for those outside the single currency.
- (EU) 57% of EU companies have liquidity problems due to debt defaults - ABC
- (EU) Investors in Asian have been buying European hybrid securities - FT
- (FR) Vote on EU budget pact to test France President Hollande - financial press; Note: On Tuesday France National Assembly to vote on a EU treaty.
- (EU) ECB's Asmussen: Sees no risk of inflation or currency depreciation - German press; Says German "inflation is less than at the time of the deutschmark"; presently stands at 1.6%.
- (DE) German Chancellor Merkel continues to face critics within her own party regarding euro zone rescue measures - FT
- (GR) IMF's Lagarde: Talks with the Greek govt has been very productive - financial press
- (GR) Greece finance ministry: Reiterates view that it would continue negotiations with international creditors next week - financial press
- (GR) German govt spokesperson Seibert: We want to help Greece stabilize within the euro zone; Germany is "contributing massively to the rescue programs Greece I and Greece II" - financial press
- (PT) Portugal to receive another year from Troika to meet the 3% GDP deficit target - Economico
- (IE) The global slowdown could make it more difficult for Ireland to meet its budget targets - US financial press
- (ES) US hedge funds have been purchasing Spain govt bonds - Times
Looking Ahead
All times listed for economic events are denominated in Eastern Standard Time (Add 4 hours for GMT equivalent)
- 06:00 (UK) Chancellor Osborne speaks at U.K. Tory Party Conference
- 06:30 (US) Daily Libor Fixing
- 07:00 (BR) Brazil Sept FGV Inflation IGP-DI: 0.8%e v 1.3% prior
- 07:15 (EU) EU's Reichenbach speaks on Greece at Think Tank
- 07:30 (BR) Brazil Central Bank Weekly Economists Survey
- 07:30 (CL) Chile Sept Trade Balance: -$293Me v -$843.0M prior; Total Exports: No est v $5.9B prior; Total Imports: No est v $6.7B prior
- 07:30 (CL) Chile Sept Copper Exports: No est v $3.0B prior
- 08:00 (RO) Romania to Sell Bills
- 09:00 (FR) France Debt Agency (AFT) to sell up to €7.0B in 3-month, 6-month and 12-month bills
- 09:30 (EU) ECB calls for bids in 7-Day Main Refinancing Tender
- 09:30 (EU) ECB announces weekly settlements in Govt Bond Purchases
- 09:45 (UK) BOE to buy £1.0B 2015-2019 Gilts in reverse auction
- 10:00 (HU) Hungary Sept Budget Balance (HUF): No est v v -559.5B prior
- 11:00 (EU) Euro-Area Finance Ministers meet in Luxembourg
- 16:00 (EU) Eurogroup press conference
- 17:00 (CO) Colombia Aug Exports: No est v $4.7B
- 17:30 IMF updates its World Economic Outlook
- 19:50 (JP) Japan Aug Trade Balance: -¥628.6Be v -¥373.6B prior; Total Current Account Balance: ¥421.1Be v ¥625.4B prior
Copyright (c) 2012 Trade The News, Inc.
Above listed TradeTheNews.com market updates are delayed 5 minutes. To sample the live audio broadcasts, real-time headlines and research on demand in real time, please go to http://www.tradethenews.com for your no-obligation FREE trial.
Above listed TradeTheNews.com market updates are delayed 5 minutes. To sample the live audio broadcasts, real-time headlines and research on demand in real time, please go to http://www.tradethenews.com for your no-obligation FREE trial.