Economic Data
(UK) AUG PUBLIC FINANCES (PSNCR): -£9.6B V -£5.5BE; PSNB EX INTERVENTIONS: £14.4B V £15.0BE; NET BORROWING: £12.4B V £13.2BE
(ES) SPAIN JULY TRADE BALANCE: -€1.69B V -€2.7B PRIOR
(IC) ICELAND AUG WAGE INDEX M/M: 0.1% V 0.1% PRIOR; Y/Y: 5.9% V 6.0% PRIOR
(DE) GERMANY JULY CONFERENCE BOARD LEADING ECONOMIC INDEX M/M: +0.1% V 0.0% PRIOR (1st increase in 5-months)
(NL) NETHERLANDS JULY CONSUMER SPENDING Y/Y: -1.5% V -0.5% PRIOR
(NL) NETHERLANDS AUG HOUSE PRICE INDEX M/M: -0.7% V -3.6% PRIOR; Y/Y: -8.0% V -8.0% PRIOR
(CH) SWITZERLAND AUG M3 MONEY SUPPLY Y/Y: 8.5% V 9.5% PRIOR
(ES) SPAIN JULY MORTGAGES-CAPITAL LOANED Y/Y: -27.4% V -20.4% PRIOR; MORTGAGES ON HOUSES Y/Y: -17.5% V-25.2% PRIOR
(FR) FRANCE Q2 FINAL WAGES Q/Q: +0.5% V 0.5% PRELIM
Fixed Income
(DE) Germany to sell €3B in 1 year zero coupon Bubills
(FR) France Debt Agency (AFT) to sell up to €6.8B in 3-month, 6-month and 12-month bills on Monday Sept 24th
(IN) India sells total INR150B vs. INR150B indicated in 2020, 2025, 2032 and 2041 bonds
(ZA) South Africa sells total ZAR800M in I/L 2025, 2038 and 2050 Bonds
Buzzi Unichem [BZU.IT]: Said to be planning to sell at least €300M of 6-year bonds; Yields seen at 6.375-6.5%
Notes/Observations
Commodities rebound from losses seen on prior session, led by copper.
Indian equities outperform as finance ministry discloses new tax reduction measures.
Following the recently released better than expected German Sept advance PMI data, the July conference board leading index for the country rose for the first time in 5 months.
China PBoC official Song expressed caution about a H2 rebound in China, as he noted that Q3 growth could slow to 7.4% vs the approx. 7.8% seen in H1.
GBP/USD hits 5-month highs following the release of UK Aug public finances data.
EUR/USD recovers $1.30, amid gains in Cable and slight decline in Spanish yields.
Peripheral European corporate continue to return to the market. On today's session, Italian high yield issuer Buzzi Unicem announced plans to sell 6-year bonds.
Equities
Indices: FTSE 100 -0.10% at 5,850, DAX +0.30% at 7,408, CAC-40 +0.40% at 3,525, IBEX-35 +1.1% at 8,107, FTSE MIB +1.1% at 16,006, SMI +0.40% at 6,578, S&P 500 Futures +0.24% at 1,457
European equity indices are trading broadly higher, following the losses seen on Thursday's session. The gains have been led by the peripheral indices, as the Spanish IBEX-35 and Italian FTSE MIB indices are higher by over 0.80%. Banks are broadly higher, led by Italian banks. Today is a triple witching session for various European indices. Also, the DAX reshuffle is expected later today.
In The UK, HMV [HMV.UK] has lost over 3% after reporting a decline in its H1 sales. Xstrata [XTA.UK] is slightly higher amid reports that the firm 's board could recommend Glencore's offer by as earlier as today. Air France [AF.FR] has outperformed the overall CAC-40 index, as a company executive said that the firm's debt should decline later in 2012 due to cost cutting measures. Technip [TEC.FR] has gained over 1.5% after receiving a contract related to a project in Norway.
In Germany, Adidas [ADS.DE] has lost over 1%, after affirming its 2012 forecast and revising its 2015 sales target. Small-cap pharmaceutical company Morphosys [MOR.DE] is higher by over 12%, as the company presented data on its rheumatoid arthritis treatment. Shares of Swiss travel firm Kuoni [KUNN.CH] have gained over 2% after the company announced plans to exit certain loss making businesses. Danish pharmaceutical firm TopoTarget [TOPO.DK] has gained over 140% after disclosing data on BELINTOSTAT.
FTSE 100 movers (Evraz +2.9%, Vedanta +2.8%, Eurasian +2%, Kazakhmys +1.8%, Pearson +1.5%; Imperial Tobacco -1.5%, Reckitt Benckiser -1.2%, National Grid -1.2%, Babcock International -1%, British American Tobacco -0.90%)
CAC-40 movers (Technip +1.7%, SocGen +1.5%, Axa +1.5%, Renault +1.4%, BNP +1.3%; Vallourec -0.40%, Air Liquide -0.20%, STMicroelectronics -0.10%)
DAX movers (Man +1.4%, MunichRe +1.4%, Deutsche Boerse +1.2%, Allianz +1.1%, HeidelbergCement +1%; Adidas -1.7%, Henkel -0.90%, BMW -0.60%, Metro -0.60%, Deutsche Telekom -0.50%)
IBEX-35 movers (Endesa +4.4%, Grifols +4.2%, Sacyr +3.5%, Acciona +3.2%, Mapfre +2.7%; Tecnicas -0.80%, Bolsas Y Mercados -0.40%)
FTSE MIB movers (Banca Monte Paschi +3.8%, Mediobanca +2.6%, Mediolanum +2.4%, Intesa +2.3%, Mediaset +2.3%; Tenaris -0.70%)
SMI movers (Transocean +2.8%, Credit Suisse +1.6%, UBS +1.5%, Julius Baer +1.1%, SGS +1%; Givaudan -0.30%; Swisscom -0.20%)