Economic Data
(RU) Russia Central Bank (CBR) left its key rates unchanged, as expected; c ut its FX Swap rates to increase liquidity and curb money market rate volatility.
(RU)) Russia Narrow Money Supply w/e June 11th (RUB): 7.03T v 6.93T prior.
(SG) Singapore Apr Retail Sales M/M: -0.9% v +1.5%e; Y/Y: 2.2% v 6.9%e; Retail Sales Ex Auto Y/Y: 2.9% v 4.2%e.
(SE) Sweden May PES Unemployment Rate: 4.0% v 4.1%e.
(EU) Eurozone May EU 25 New Car Registrations: -8.7% v -6.9% prior.
(PH) Philippines Apr Overseas Remittances: $1.7B v $1.7B prior.
(CZ) Czech Apr Export Price Index Y/Y: 2.7% v 2.5% prior; Import Price Index Y/Y: 4.5% v 4.2% prior.
(CZ) Czech May PPI (Industrial) M/M: 0.0% v 0.1%e; Y/Y: 1.7% v 1.8%e.
(DK) Denmark May Wholesale Prices M/M: -0.5% v +0.2% prior; Y/Y: 2.0% v 2.2% prior.
(FI) Finland Apr Current Account: -€980M v +€40M prior.
(HU) Hungary Apr Final Industrial Production M/M: -2.4% v -2.4% prelim; Y/Y: -3.1% v -3.1% prelim.
(ES) Spain Q1 Labour Costs Y/Y: 1.1% v 1.6% prior.
(TR) Turkey Mar Unemployment Rate: 9.9% v 10.4% prior.
(CZ) Czech Apr Current Account (CZK): +5.3B v -3.6Be.
(IT) Italy Apr Total Trade Balance: -€0.2B v +€2.1B prior; EU Trade Balance: 0.7B v 1.6B prior.
(UK) Apr Visible Trade Balance: -£10.1B v -£8.5Be; Total Trade Balance: -£4.4B v -£2.6Be; Non-EU Trade Balance: -£5.2B v -£4.2Be.
(EU) Eurozone Q1 Employment Q/Q: -0.2% v -0.3% prior; Y/Y: -0.5 v -0.2% prior.
(EU) Eurozone Apr Trade Balance Seasonally Adj: €6.2B v €4.2Be; Trade Balance (unadj): €5.2B v €4.0Be.
(CN) China May Actual Foreign Direct Investment (FDI) Y/Y: +0.1% v -1.6%e.
Fixed Income
(ZA) South Africa sold total of ZAR800M in I/L 2022, 2028 and 2033 Bonds.
Notes/Observations
G20 said to indicate that central banks are preparing for coordinated action to provide liquidity if necessary after the Greece weekend election; BOJ says not aware of coordinated action but always in contact with other CBs.
BOE activates its Extended Collateral Term Repo (ECTR) lending facility.
Russia cuts its FX Swap rates to increase liquidity and curb money market rate volatility.
BOJ maintains steady policy and asset purchases; raises economic assessment.
German Chancellor Merkel reiterates that Germany would reject any "quick fix" to crisis solution at upcoming G20 including Eurobonds.
Moody's downgrades Netherlands banking sector; Most outlooks now stable.
Equities
FTSE 100 +0.70% at 5503, DAX +1.1% at 6202, CAC-40 +1.5% at 3079, IBEX-35 +1.6% at 6802, FTSE MIB +2.3% at 13,388, SMI +0.20% at 5920.
On a day on which quadruple witching will occur, European equity indices opened the session higher, led by gains in the IBEX-35 and the FTSE MIB, as all eyes are on the weekend elections in Greece. In terms of the Greek equity markets, the Athens Stock Exchange has traded lower by ~1%, after the index rallied by more than 9% on Thursday's session. In terms of the Greek bond market, 10-yr yields have declined by over 70bps on the session (near 26.6%). Overall markets started with a positive on continued speculation that there could be a global policy response, if markets react negatively to the political events in Greece.
In UK equity movers, Premier foods [PFD.UK] is higher by over 9% (announced the sale of certain assets for £41M), Lamprell [LAM.UK] has gained over 10% (announced debt repayment plan), while Aggreko [AGK.UK] is lower by ~3.5% (issued H1 forecasts). UK banks have outperformed their continental European peers, after the BoE announced a plan to activate the Extended Collateral Term Repo (ECTR) facility.
In Sweden, retailer H&M [HMB.SE] has traded higher by over 1%, as the company reported better than expected May sales figures (May SSS +3% v -1.4%e). Carrefour [CA.FR] has gained ~1.5%, after announcing plans to exit its Greek joint venture. Telekom Austria [TKA.AT] is trading higher by over 1%, after America Movil announced that it was interested in taking a 21% stake in the company.