Notes/Observations
RBA leaves interest rates unchanged (as expected) with bias towards easing
Australia Dec Trade Balance registers its 12th straight deficit but smallest in 6 months
China Jan HSBC PMI Services hits 4-month high
(CN) China PBoC to offer CNY450B in 14-day reverse repos (largest one-day injection on record)
(EU) Netherlands, Finland and Germany said to have sought to bring forward measures to impose losses on senior bank bondholders
European PMI Services come in better than expected across the board
BOJ Gov Shirakawa to down a few weeks early to coincide with departure of two Deputy members
Economic Data
(CH) Swiss Dec Trade Balance (CHF): 1.0B v 2.0Be; Real Exports M/M: -1.5% v 5.5% prior; Real Imports M/M: 5.5% v 4.5% prior
(IE) Ireland Jan NCB Services PMI: 56.8 v 55.8 prior; (highest since Aug 2007)
(FI) Finland Nov GDP Indicator WD: -1.2% v -0.7% prior
(SE) Sweden Jan PMI Services: 52.4 v 51.2e
(CZ) Czech Dec Retail Sales Y/Y: -5.1% v -5.7%e
(EU) ECB: €116M borrowed in overnight loan facility vs. €7.0M prior; €176.2B parked in deposit facility vs. €181.0B prior
(ES) Spain Jan Services PMI: 47.0 v 44.2e
(TW) Taiwan Jan Foreign Exchange Reserves: $406.6B v $403.2B prior
(SE) Sweden Dec Service Production M/M: 0.7% v 0.7% prior; Y/Y: 2.2% v -0.1%e
(IT) Italy Jan PMI Services: 43.9 v 45.8e (20th straight contraction); Employment Index: 41.9 v 43.7 prior (lowest reading in 15 years since series began)
(FR) France Jan Final PMI Services: 43.6 v 43.6e; lowest since March 2009 and 6th straight monthly contraction
(DE) Germany Jan Final PMI Services: 55.7 v 55.3e; second month of growth
(EU) Euro Zone Jan Final PMI Services: 48.6 v 48.3e (highest seen March 2012); PMI Composite: 48.6 v 48.2e
(DE) Germany Dec machinery orders +4.0% y/y (Domestic +1% y/y, Foreign +5% y/y) - VDMA
(UK) Jan PMI Services: 51.5 v 49.5e, highest reading since Sept 2012
(ZA) South Africa Q4 Unemployment Rate: 24.9% v 25.7%e
(EU) Euro Zone Dec Retail Sales M/M: -0.8% v -0.5%e; Y/Y: -3.4% v -1.4%e
(BR) Brazil Jan FGV Inflation: 0.3% v 0.3%e
(IT) Italy Jan Preliminary CPI (NIC incl. tobacco) M/M: 0.2% v 0.2%e; Y/Y: 2.2% v 2.2%e
(IT) Italy Jan Preliminary CPI Harmonized M/M: -2.0% v -1.9%e; Y/Y: 2.4% v 2.6%e
(RO) Romania Central left Interest Rate unchanged at 5.25%
Fixed Income
(ZA) South Africa sold total ZAR2.1B vs. ZAR2.1B indicated in 2026, 2031 and 2041 bonds
(DK) Denmark sold total DKK2.6B in 2023 and 2029 Bonds
(AT) Austria Debt Agency (AFFA) sold total €1.1B vs. €1.1B indicated in 2019 and 2022 RAGB bonds
Sold €550M in 3.40% Nov 2022 RAGB; Avg Yield 1.934% v 1.838% prior; Bid-to-cover: 2.48x v 3.47x prior
Sold €550M in 1.95% Jun 2019 RAGB; Avg Yield 1.294% v 1.021% prior; Bid-to-cover: 2.60x v 2.56x prior
(GR) Greece Debt Agency (PDMA) sold €812.5M vs. €625M indicated in 26-week Bills; Avg Yield 4.27% v 4.30% prior; Bid-to-cover: 1.68x v 1.62x prior
(CH) Switzerland sold CHF938.8M in 3-Month Bills: Yield: -0.090% v -0.087% prior
(EU) ECB allotted €229.3B vs. €122Be in 7-day Main Refi Tender (MRO) at fixed 0.75%
(HU) Hungary Debt Agency (AKK) sold HUF60B vs. HUF50B indicated 3-Month Bills; Avg Yield 5.30% v 5.42% prior; Bid-to-cover: 1.87x v 2.02x prior
(UK) DMO sold £1.1B in 0.125% I/L 2024 Gilts; Real Yield -0.844% v -0.583% prior; Bid-to-cover: 1.97x v 2.37x prior
(BE) Belgium Debt Agency sold total €3.041B vs. €2.8-3.3B indicated range in 3-month and 6-month Bills
Sold €1.504B in 3-month Bills; Avg Yield +0.038% v 0.012% prior; Bid-to-cover: 2.42x v 2.34x prior
Sold €1.541B in 6-month Bills; Avg yield +0.075% v +0.011% prior; Bid-to-cover: 2.23x v 2.23x prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Equities
FTSE 100 +0.30% at 6,265, DAX -0.10% at 7,630, CAC-40 +0.30% at 3,670, IBEX-35 +0.80% at 7,984, FTSE MIB +0.40% at 16,593, SMI +0.40% at 7,394, S&P 500 Futures +0.30% at 1,498
European equity markets are broadly higher, as Spanish and Italian equities rebounded from the sharp losses seen during the prior session. Germany's DAX has underperformed amid weakness in Bayer and the auto sector. Banks in Spain and Italy have led today's gains in the financial sector, while shares of Commerzbank have lagged. UBS' shares have moved between gains and losses, following the firm's Q4 earnings report
UK movers [Virgin Media +14% (confirms talks with Liberty Global), ARM Holdings +3.5% (Q4 results), BP +1.5% (Q4 results) ; Shanks -3% (trading update), BG -1.5% (production outlook)]
Germany movers [MunichRe +2% (Q4 results),HeidelbergCement +1% (broker commentary);HannoverRe -0.50% (broker commentary)]
France movers [Bonduelle +1.5% (H1 sales)]
Switzerland movers [Givaudan +3.5% (FY results), UBS has moved between gains and losses (Q4 results)]
The Netherlands movers [KPN -20% (rights offering)]