Economic Data
(FI) Finland Sept Unemployment Rate: 7.1% v 7.0%e
(FR) France Oct Business Confidence Indicator: 85 v 90e; Production Outlook Indicator: -56 v -50e; Own-Company Production Outlook: -8 v -5 prior
(DK) Denmark Oct Consumer Confidence: -5.5 v -2.2 prior
(ZA) South Africa Aug Leading Indicator: 131.2 v 130.4 prior
(EU) ECB: €1.1B borrowed in overnight loan facility v €1.0B prior; €251.6B parked in deposit facility vs. €248.7B prior- 03:30 (NL) Netherlands Aug Consumer Spending Y/Y: -2.0% v -1.6% prior
(RO) Romania Sept Money Supply Y/Y: 7.8% v 9.8% prior
(PL) Poland Sept Retail Sales M/M: -1.3%% v +0.3%e; Y/Y: 3.1% v 4.5%e
(PL) Poland Sept Unemployment Rate: 12.4% v 12.5%e
(TW) Taiwan Sept Industrial Production Y/Y: 3.0%% v 6.5%e; Commercial Sales: -0.8% v -0.8%e
(UK) Sept BBA Loans for House Purchase: 31.2K v 30.8Ke
Fixed Income:
(ES) Spain Debt Agency (Tesoro) sold total €3.53B vs. €2.5-3.5B indicated range in 3-Month and 6-Month Bills
Sold €967M in 3-month Bills; Avg Yield: 1.415% v 1.203% prior; Bid-to-cover: 4.32x v 3.29x prior; Max Yield: 1.45% v 1.25%; Tail: 3.5bps v 4.7bps prior
Sold €2.56B in 6-month Bills; Avg Yield: 2.023% v 2.213% prior; Bid-to-cover: 1.99x v 1.83x prior; Max Yield: 2.100% v 2.30% prior; Tail: 7.7bps v 8.7bps prior
Spain Autonomous region of Madrid to sell additional Mar 2020 bonds; Yield guidance seen at 7.80%
(UK) DMO opened its book on its £4.25B 3.25% Oct 2044 Gilt via syndication; pricing guidance +8ps/2042 Gilt with order book over £9.5B
(IN) India sold total INR100B vs. INR100B indicated in 3-month and 6-month Bills
(ZA) South Africa sold total ZAR2.1B vs. ZAR2.1B indicated in 2026, 2036 and 2048 Bonds
(CH) Switzerland sold CHF850.3M in 3-Month Bills; Avg Yield -0.229% v -0.221% prior
(EU) ECB allotted €77.3B vs. €90Be in 7-Day Main Refinancing Tender at fixed 0.75%; recd 93 bids vs. 96 prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Notes/Observations
Pressure mounts on BoJ for more monetary easing at its Oct 30th policy meeting. Market chatter of another $250B in asset purchases but Japan Govt denies any such pressure on BOJ
Moody's cuts rating on 5 Autonomous Spanish regions and affirms 5 other
Spain 2012 deficit to GDP may be 7.2-7.4% of GDP against the planned 6.3% target
Greek political leaders meet today, as the negotiations over the release of the next bailout tranche reach the final round
Obama the perceived winner of the third and final presidential debate
Hong Kong Monetary Authority (HKMA) continues to defend its USD peg and curb HKD currency appreciation
Equities
Indices: FTSE 100 -0.60% at 5,848, DAX -0.70% at 7,277, CAC-40 -0.40% at 3,467, IBEX-35 -0.40% at 7,848, FTSE MIB -0.20% at 15,832, SMI -0.70% at 6,699, S&P 500 Futures -0.60% at 1,422
Following the mixed open, European equity indices are mostly lower, led by the German DAX index, amid the rise being seen in peripheral yields. Weakness has been seen throughout the banking sector and underperformers include Deutsche Bank, Lloyds, RBS, SocGen and BBVA. Greece banks are broadly lower, tracking the declines in Greece's bond prices. Mining shares are broadly lower, tracking the declines in commodity prices. Overall, the European corporate earnings/forecasts released on the session have been mixed. Companies which have beat expectations include ARM Holdings, CSR and Swedbank, while quarterly results were weaker than expected for Alfa Laval, KPN, Norsk Hydro and Syngenta. Cautious outlooks were issued by firms including Faurecia, Leoni and Mulberry. Companies due to report during the US morning include 3M, Coach, Dupont, Harley Davidson, Lexmark International and UPS.
Luxury handbag retailer Mulberry [MUL.UK] has declined by over 25%, as the company warned on its FY outlook amid weakness in the international business. Chipmaker ARM Holding [ARM.UK] has gained over 3%, after reporting better than expected Q3 results. CSR [CSR.UK] is higher by more than 3%, on better than expected Q3 sales. Shares of drilling services firm Capital Drilling [CAPD.UK] are lower by more than 10%, as the company warned on its full year outlook. In other UK movers, Premier Foods [PGD.UK] has gained over 4% (issued interim management statement), while Whitbread [WTB] has moved lower by over 1.5% (issued H1 sales report).Dutch telecom firm KPN [KPN.NL] is trading lower on weaker than expected Q3 results. Coffee and tea products manufacturer DE Master Blenders [DE.NL] is lower by over 4%, after releasing Q1 sales figures. In Switzerland, Syngenta [SYNN.CH] has moved higher, despite reporting weaker than expected Q3 sales, as the firm reaffirmed its FY forecast. In Germany, wire/cable products firm Leoni [LEO.DE] has declined by over 3%, as the company made cautious comments about its Q4 outlook. ADVA Optical Networking [ADV.DE] has declined by over 13%, as the firm issued sales guidance for Q4. In France, Michelin [ML.FR] has gained over 4% on better than expected Q3 sales figures. Auto parts company Faurecia [EO.FR] has declined by over 3% as it cut its FY operating income forecast. Swedish engineering products/solutions firm Alfa Laval [ALFA.SE] is lower more than 6% on weaker than expected quarterly results. Shares of Swedbank [SWEDA.SE] are higher by more than 2%, as the company reported better than expected Q3 profits. Norwegian aluminum firm Norsk Hydro [NHY.NO] has declined by over 3% on weaker than expected quarterly sales results. In Finland, Nokia has declined by over 4%, as the company announced a plan to sell convertible bonds.
FTSE 100 movers (ARM Holdings +4%, Experian +3.3%, Centrica; Burberry -4.5%, Kazakhmys -3.6%, Whitbread -2.9%, RBS -2.4%, Weir Group -2.2%, Lloyds -2.2%)
CAC-40 movers (Alcatel-Lucent -2.6%, Solvay -1.6%, Sanofi -1.5%, AXA -1.5%, Schneider Electric -1.3%)
DAX movers (Adidas -2.1%, Bayer -1.8%, Lufthansa -1.8%, Infineon -1.5%, K+S -1.4%)
IBEX-35 movers (Banco Popular -2.3%, Mapfre -2.3%, ACS -1.7%, BBVA -1.3%, Banco Sabadell -1.3%)
FTSE MIB (Ferragamo -3%, Finmeccanica -3%, Mediaset -2.1%, Banca Popolare -1.9%, Fiat -1.8%)
SMI movers (Syngenta +1%; Credit Suisse -1.9%, Actelion -1.9%, Adecco -1.5%)