Economic Data
- Sentiment wavering on edge of fiscal cliff as lack of progress seen in US budget talks
- 10-yr JGB yield falling to 9-year low 0.72%
- European peripheral spreads tighten in session despite uncertainties in the details of the Greek deal
- Italy 10-year yield at 18-month lows below 4.70%
- Italy 6-month bill auction results seen as solid with yield at 2-yr lows
- German 5-year BOBL auction results seen as solid (lower yield with higher bid/cover ratio)
- Bank of Spain (BOS): Recent data suggests that Q4 GDP will continue to contract; impact of ECB efforst are waning
- Germany's DIW Institute cuts Q4 GDP forecast to 0.0% (flat) from prior +0.2%
- Eurozone Oct M3 money supply data grows at highest rate since Oct 2008
- US Treasury says China CNY remained significantly undervalued but China is not a currency manipulator
- Onion: North Korea President Kim Jong-un 2012 'sexiest man alive', China Daily runs 55-page photo spread
- (TH) Thailand Central Bank left Benchmark Interest Rate unchanged at 2.75%, as expected
- (ES) Spain Oct Adjusted Real Retail Sales Y/Y: -9.7% v -9.4%e; Real Retail Sales Y/Y: -8.4% v -10.0%e
- (DE) Germany Nov CPI Saxony M/M: -0.1% v +0.1% prior; Y/Y: 2.0% v 2.0% prior
- (HU) Hungary Oct Unemployment Rate: 10.5% v 10.5%e
- (EU) ECB: €2.46B borrowed in overnight loan facility €2.4B prior; €241.9B parked in deposit facility vs. €245.2B prior
- (NL) Netherlands Nov Producer Confidence: -7.0 v -7.9e
- (SE) Sweden Q3 Current Account (SEK): 66.1B v 61.5B prior
- (EU) Eurozone Oct M3 Money Supply Y/Y: 3.9% v 2.8%e (highest reading since Oct 2008) v 2.7% prior; M3 Money Supply 3M Average: 3.1% v 2.8%e
- (DE) Germany Nov CPI Brandenburg M/M: -0.2 v 0.1% prior; Y/Y: 1.5% v 1.9% prior
- (DE) Germany Nov CPI Hesse M/M: -0.2 v 0.0% prior; Y/Y: 1.8% v 2.0% prior
- (IC) Iceland Nov CPI M/M: 0.3% v 0.3% prior; Y/Y: 4.5% v 4.2% prior
- (RU) Russia sold RUB13.5B vs. RUB15B indicated in 2017 OFZ bonds; Yield 6.80% vs. guidance of 6.80-6.85%
- (SE) Sweden sold SEK3.5B in 2023 Bonds, Yield 1.6158% v 1.4416% prior
- ECB allotted $3.2B in 7-Day USD Liquidity Tender at fixed 0.68% vs. $3.3B prior
- (IT) Italy Debt Agency (Tesoro) sold €7.5B vs. €7.5B indicated in 6-month Bills, Avg Yield 0.919% (lowest since April 2010) v 1.34% prior; Bid-to-cover: 1.65x v 1.52x prior
- (EU) ECB allotted €7.4B in 3-Month MRO Tender at fixed 0.75% vs. €10.0Be
- (DE) Germany sold €2.507B in 0.5% Oct 2017 BOBL; Avg Yield 0.41% v 0.42% prior; Bid-to-cover: 1.9x v 1.5x prior
Indices: FTSE 100 -0.20% at 5,787, DAX -0.10% at 7,324, CAC-40 -0.30% at 3,492, IBEX-35 -0.90% at 7,794, FTSE MIB -0.20% at 15,449, SMI +0.20% at 6,726, S&P 500 Futures -0.10% at 1,396.
European equity markets have tracked yesterday's declines in the US equity markets, as concerns about the "fiscal cliff" and debt ceiling issues continue to linger. Today's weakness has been led by Greece's Athens Stock Exchange (ASE), as markets continue to await more details related to the Greek government's bond buyback plan. Also, there is uncertainty about when Germany's parliament will vote on Greece's aid package.
Spain's IBEX has declined by over 1%, as the Bank of Spain said that it expects the country's economic contraction to continue into Q4. European banks are broadly lower, led by weakness in the Greek banking sector. Shares of Deutsche Bank have also underperformed. Resource related firms are moving lower, amid the decline in Chinese equities and commodity prices.
UK movers [Tate & Lyle -2.3% (ex-dividend), National Grid -1.9% (ex-dividend), Smith & Nephew -1% (announced acquisition), Thomas Cook -1.5% (weaker than expected FY12 sales); Marks & Spencer +3.5% (pension agreement), United Utilities +2% (raised interim dividend), Arm Holdings +1% (renewed takeover speculation)].
France movers (Bourbon -1.2% (index removal)]
- Germany movers [Deutsche Bank -1.5% (capital concerns/libor testimony), ThyssenKrupp -1.5% (asset sale concerns), Metro -3% (share placement speculation), Celesio -2% (share placement), Wacker Chemie -1% (index removal)]
- Italy movers (Banco Popolare -2.5% (credit rating concerns), Banca Monte Paschi -1.5% (approved capital plan)]
- Switzerland movers [Swiss Life -4.5% (writedown for AWD unit), Nobel Biocare -1 % (index removal)]
- Austria movers [Raiffeisen Bank -4% (Q3 earnings)]
- Greece [Banks have again traded lower by over 4% on today's session (uncertainty related to gov't debt buyback and German aid vote)]