Notes/Observations
China accounting body official calling local govt debt "out of control" has received much coverage, particularly telling after Moody's and Fitch offered downbeat reports on China over the past week.
Sweden Central Bank hold rates steady but unexpectedly lowers its outlook for Repo Rate Path; SEK currency weakens.
Bank of England (BOE) Monetary Policy Committee Minutes had no surprises. Votes were 9-0 and 6-3 for interest rates and Asset Purchase Target
Germany sells 10-year bunds at record low yield.
Brazil expected to hike rates later today to fight inflation.
Economic Data
(JP) Japan Mar Consumer Confidence: 44.8 v 46.0e
(EU) EU27 Mar New Car Registrations: -10.2% v -10.5% prior.
(EU) ECB: €660M borrowed in overnight loan facility vs. €642M prior; €115.2B parked in deposit facility vs. €116.2B prior.
(SE) Sweden Central Bank (Riksbank) left Repo Rate unchanged at 1.00% (as expected) and lowered its Repo Rate Path outlook.
(ZA) South Africa Mar CPI (all items) M/M: 1.2% v 1.3%e; Y/Y: 5.9% v 6.0%e
(UK) Mar Jobless Claims Change: -7.0K v 0.0Ke (flat); Claimant Count Rate: 4.6% v 4.7%e
(UK) Feb Average Weekly Earnings 3M/Y: 0.8% v 1.3%e; Weekly Earnings ex-Bonus 3M/Y: 1.0% v 1.2%e
(UK) Feb ILO Unemployment Rate (3mths): 7.9% v 7.8%e; Employment Change 3M/3M: -2K v +60Ke
(CH) Swiss Apr Credit Suisse ZEW Expectations: 20.0 v 2.3 prior
(EU) Euro Zone Feb Construction Output M/M: -0.8% v -2.1% prior; Y/Y: +0.8v -9.0% prior
(MA) Malaysia Mar CPI Y/Y: 1.6% v 1.6%e
Fixed Income:
(IN) India sold INR100B vs. INR100B indicated in 3-month and 12-month Bill.s
(SE) Sweden sold SEK3.5B in 2019 bond; Yield: 1.2850%
(EU) ECB allotted $0.0B in 7-Day USD Liquidity Tender at fixed 0.64% vs. $0.0B prior.
(DE) Germany sold €3.349B in 1.5% 2023 Bunds; Avg Yield: 1.28% (record low) v 1.36% prior; Bid-the-cover:1.6 x v 1.6x
(RU) Russia sold RUB20B in 2023 OFZ Bonds; Yield: 6.93%
(PT) Portugal Debt Agency (IGCP) sold €1.75B vs. €1.75B indicated in 3-month and 12-month Bills.
Sold €250M in 3-month Bills; Avg Yield: 0.743% v 0.757% prior; Bid-to-cover: 4.8x v 3.9x prior.
Sold €1.5B in 12-month Bills; Avg Yield 1.394% v 1.277% prior; Bid-to-cover: 2.1x v 2.3x prior.
(DK) Denmark to sell USD-denominated benchmark 3-year bonds; guidance seen -2bps to mid-swaps
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Equities
Indices: FTSE 100 -0.50% at 6,271, DAX -1.2% at 7,592, CAC-40 -0.80% at 3,655, IBEX-35 -0.80% at 7,882, FTSE MIB -0.40% at 15,470, SMI -0.50% at 7,681, S&P 500 Futures -0.50% at 1,560
Equity markets in Europe are broadly lower, after opening the session higher. The DAX index has underperformed, with some citing technical weakness as the catalyst for the decline in the German bourse. Analyst commentary on key German companies including BASF and Deutsche Bank has been cautious. In London, the FTSE 100 is declining for the 4th straight session. Resource related firms are mostly lower, amid the sharp decline in copper prices. European banks are broadly lower, led by Deutsche Bank. Bank of America and Bank of NY are due to report quarterly earnings during the U.S. morning session.
UK movers [Sepura +7% (raised outlook), Burberry +4% (Q4 sales above ests); Tesco -2% (FY sales below ests)]
Germany movers [Infineon -2.5% (Intel results), BASF -2.5% (broker commentary), Continental -1.5% (broker commentary), Deutsche Bank -1.3% (broker commentary)]
France movers [EADS +4.5% (share buyback)]
Italy movers [Prysmian -5% (cautious outlook commentary)]
Switzerland movers [GAM Holdings (reported Q1 outflows)]
The Netherlands movers [ASML +8% (Q1 results above ests, announced buyback)]