European Market Update

Published 01/16/2012, 07:41 AM
Updated 01/01/2017, 02:20 AM
Europe weathers the initial effects of the multi-country sovereign downgrade by S&P after the close last Friday; Moody's still assessing France's stable outlook

Economic Data

(PH) Philippines Nov Overseas Remittances: $1.8B v $1.8B prior; Y/Y: 10.6 v 6.2% prior

(EU) ECB: €2.4B borrowed in Overnight Loan Facility vs €1.5B prior; €493.3B (fresh record highs) parked in Deposit Facility vs. €489.9B prior

(IN) India Dec Monthly Wholesale Prices Y/Y: 7.5% v 7.4%e

(DE) Germany Dec Wholesale Price Index M/M: 0.0% v 0.7% prior; Y/Y: 3.0% v 4.9% prior

(CZ) Czech Nov Export Price Index Y/Y: 5.8% v 4.5% prior; Y/Y: 7.6% v 6.9% prior

(CZ) Czech Dec PPI Industrial M/M: 0.1% v 0.2%e; Y/Y: 4.6 v 4.7%e

(DK) Denmark Dec Wholesale Prices M/M: 0.1 v 0.1% prior; Y/Y: 4.1% v 5.2% prior

(TR) Turkey Dec Consumer Confidence: 92.0 v 91.0 prior

(TR) Turkey Oct Unemployment Rate: 9.1% v 8.8% prior

(CH) Swiss Dec Producer & Import Prices M/M: +0.3% v -0.1%e; Y/Y: -2.3% v -2.8%e

(AT) Austria Dec Consumer Price Index M/M: 0.2% v 0.1% prior. Y/Y: 3.2% v 3.6% prior

(NO) Norway Dec Trade Balance (NOK): 41.2B v 35.5B prior

(IT) Italy Dec Final CPI (NIC incl. tobacco) M/M: 0.4% v 0.4%e; Y/Y: 3.3% v 3.3%e

(IT) Italy Dec Final CPI EU Harmonized M/M: 0.3% v 0.3%e; Y/Y: % v 3.7%e

(IT) Italy Nov General Government Debt: €1.905T v €1.909T prior

(IS) Israel Q3 Final GDP Annualized: 3.6 v 4.8% prelim

Fixed Income

(SK) Slovakia Debt Agency (ARDAL) sold €294.5M in 12-month Bills, Yield 1.9699%, Bid-to-cover: 3.03x

(NL) Netherlands Debt Agency (DSTA) sold approx €3.21B vs. €3.0-5.0B indicated range in 3-month and 12-month Bills

Sold €2.19B in April 2012 Bills; Avg Yield 0.011% v 0.080% prior; Bid-to-cover: 2.51x v 2.30x prior

Sold €1.02B in June2012 Bills; Avg Yield 0.013% v 0.009% prior; Bid-to-cover: 4.00x v 2.81x prior

SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM

Notes/Observations

Moody's says need for time to asses France's Stable sovereign outlook.

Pivotal week for Greek debt talks; Greece again expresses optimism that talks will end on a positive note

Key week for major US financials with Citi and Wells Fargo reporting on Tuesday. Goldman Sachs, State Street Bank, BAC and Morgan Stanley later in the week

Japanese officials quite vocal on 11-year lows in EUR/JPY cross

Equities:

EuroStoxx at 2331.38, -0.28%, FTSE100 at 5619.1, -0.31%, DAX at 6152, +0.16%, CAC40 3178.28, -0.68%

European shares traded in negative territory, erasing past week's gains, after S&P's sweeping action on sovereign ratings. France's one-notch downgrade was already priced in the market as borrowing costs reflected an AA+ note. S&P again noted the political impasse and the inability of EU leaders to arrive at a sustainable solution. France's officials played down repercussions of the downgrade noting that while the downgrade is unwelcome it is not a catastrophe.

Banks were lower following S&P's action but carmakers rallied after Goldman Sachs recommended the sector. Carnival [CCL.UK] dropped over 17% following Italian's cruise ship sinking during the weekend. Company noted that it expected major claims from the tragedy.

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