Spain's Bond Auction Demand Was Overly Sufficient But Yields Were MixedEconomic Data
(RU) Russia Gold & Forex Reserve w/e Apr 13th: $518.8B v $516.7B prior
(DK) Denmark Apr Consumer Confidence: +0.6 v +1.5e
(HU) Hungary Feb Avg Gross Wages Y/Y: 6.9% v 6.0%e
(NL) Netherlands Mar Unemployment Rate: 5.9% v 5.9% prior
(PH) Philippines Mar Balance of Payments: -$209.0M v +$588M prior
(GR) Greece Feb Current Account: -€1.1B v -€1.5B prior
(IT) Italy Feb Industrial Orders M/M: -2.5% v -1.1%e; Y/Y: -13.2% v -6.2%e
(IT) Italy Feb Industrial Sales M/M: +2.3% v -4.9% prior; Y/Y: -1.5% v -4.4% prior
(PH) Philippines Central Bank left its Overnight Borrowing Rate unchanged at 4.00%; as expected
(HK) Hong Kong Mar Unemployment Rate: 3.4% v 3.5%e
Fixed Income
(ES) Spain Debt Agency (Tesoro) sold total €2.54B vs.€1.5-2.5B indicated range in 2014 and 2022 Bonds
Sold €1.116B in 3.30% Oct 2014 Bono; Avg Yield 3.463% v 3.495% prior; Bid-to-cover: 3.3x v 2.0x prior; Maximum Yield 3.52% v 3.519% prior
Sold €1.425B in 5.85% Jan 2022 Bono; Avg Yield 5.743% v 5.403%prior; Bid-to-cover: 2.4x v 2.2x prior; Max Yield 5.778% v 5.466%
(FR) France Debt Agency (AFT) sold approx €7.97B vs. €7.0-8.0B indicated range in 2014 & 2017 BTAN and 2015 OATs
Sold €3.55B in 0.75% Sept 2014 BTAN; Avg Yield 0.85%; Bid-to-cover:2.29 x
Sold €1.73 in 3.5% Apr 2015 OAT; avg yield 1.06% v 2.68% prior; Bid-to-cover: 3.0x v 2.85x prior
Sold €2.69B in 1.75% Feb 2017 BTAN; avg Yield 1.83% v 1.78% prior; Bid-to-cover: 2.69x v 1.98x prior
(HU) Hungary Debt Agency (AKKsold total HUF47.5B vs. HUF40B indicated in 2015, 2017, 2028 Bonds
Sold HUF22.5B vs. HUF15Be in 7.75% 2015 Bonds; Yield 8.70% v 8.75% prior; bid-to-cover: 2.29x
Sold HUF15B vs HUF15B in 6.75% 2017 Bonds; Yield 8.82% v 8.91% prior; bid-to-cover: 2.01x
Sold HUF10B vs HUF10B in 6.75% in 2028 Bonds; Yield 8.82% v 8.69% prior; bid-to-cover: 2.02x
(UK) DMO sold £1.35B in 0.125% I/L Mar 2029 Gilts; Real Yield -0.045% v -0.188% prior; Bid-to-cover: 1.7x v 2.27x prior
Notes/Observations
Australia PM Gillard says RBA has room for interest rate cuts.
German-ECB relationship said to be nearing a "breaking point."
Spain 2-teir bond auction was success but markets turns a bit soar afterwards.
Equities
FTSE 100 +0.40% at 5770, DAX +0.40% at 6758, CAC-40 +0.60% at 3259, IBEX-35 -0.20% at 7062, FTSE MIB +0.10% at 14,601, SMI +0.70% at 6213
European equity indices opened the session higher, with slight gains in the banking sector. However, banks and equity indices overall are trading mixed following the release of Spain's bond auction results. Spain's IBEX-35 continues to lag the other European indices, as the index traded near 3-yr lows earlier during the session.
In individual movers , SABMiller [SAB.UK] shares have moved between gain and losses after the company issued its quarterly trading statement. Anglo American [AAL.UK], Debenhams [DEB.UK], Ladbrokes [LAD.UK] and Persimmon [PSN.UK] are all trading higher after reporting their respective financial updates. Cable & Wireless Worldwide [CW.UK] has lost over 20% on reports that India's Tata Communications is no longer planning to bid for the company. The bidding deadline for Cable & Wireless is later today.
French advertising company, Publicis Group [PUB.FR] has declined by over 3%, after making cautious comments about its Q2 outlook. In other French movers, auto components manufacturer Plastics Omnium [POM.FR] is higher by more than 3% after reporting Q1 sales, while pharmaceutical firm Transgene [TNG.FR] has gained by more than 4%, as the company noted that pre-clinical data supported the additional development of its vaccine candidate (TG1050).
Spain's Repsol [REP.ES] has lost an additional 3% on the session, amid continued concerns related to Argentina. In Germany, Volkswagen [VOW3.DE] is lower by about 1% after reaffirming its 2012 targets, while RWE's [RWE.DE] shares are flat after the company reiterated its full year targets. Additionally, Daimler [DAI.DE] has moved into negative territory on reports that Ahu Dhabi is planning to exit its investment in the company. Akzo Nobel [AKZA.NL] is gaining by over 1% after reporting higher than expected Q1 results. In Switzerland, pharmaceutical company, Actelion [ATLN.CH] has gained more than 1.5%, following its Q1 earnings report.