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European Market Update: Equities And Commodities Slump - April 15, 2013

Published 04/15/2013, 06:30 AM
Updated 01/01/2017, 02:20 AM
UK100
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DE40
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ES35
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C
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SIEGn
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SGOB
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CAGR
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NOKIA
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TLW
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PH
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AVA
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GC
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HG
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SI
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FRES
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SMI
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MAR
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Concerns over the global growth front weighs upon commodities

Notes/Observations

China GDP and industrial production undershoot forecasts as equities and commodities slump; IP data lowest since May 2009; Q1 GDP 7.7% v 8.0%e

BOJ raises all 9 regions assessment (first across-the-board upgrade since July 2012)

EU/IMF/ECB Troika confirms staff-level agreement with Greek authorities; next tranche could come in May

Commodity markets continued to come under very heavy selling pressure with long liquidation continuing; gold slumps over 4% while silver plunges 8%

Economic Data

(SG) Singapore Feb Retail Sales M/M: +3.6% v -1.2%e; Y/Y: -2.7% v -3.5%e; Ex Auto Y/Y: 10.0%e v 4.0%e

(PH) Philippines Feb Overseas Workers Remittances: $1.7B v $1.7B prior; Y/Y: 6.0% v 7.4%e

(FI) Finland Mar CPI M/M: 0.5% v 0.4%e; Y/Y: 1.7% v 1.5%e

(JP) Japan Mar Final Machine Tool Orders Y/Y: -21.5% v -21.6% prior

(IN) India Mar Monthly Wholesale Prices YY: 6.0% v 6.3%e

(CZ) Czech Feb Export Price Index Y/Y: +0.8% v -0.5% prior; Import Price Index Y/Y: -0.5% v -1.4% prior

(CZ) Czech Mar PPI (Industrial) M/M: 0.0% v 0.1%e; Y/Y: 1.0% v 1.1%e

(DK) Denmark Mar Wholesale Prices M/M: -0.6% v 0.5% prior; Y/Y: -0.4% v +1.1% prior

(FI) Finland Feb Current Account: -€160M v -€430M prior

(TR) Turkey Jan Unemployment Rate: 10.6% v 10.9%e

(EU) ECB: €575M borrowed in overnight loan facility vs. €807M prior; €119.9B parked in deposit facility vs. €108.9B prior

(NL) Netherlands Feb Trade Balance: €3.8B v €3.8B prior

(NL) Netherlands Feb Retail Sales Y/Y: -4.8% v -0.5% prior

(CZ) Czech Feb Current Account: (CZK): 27.7B v 5.2Be

(NO) Norway Mar Trade Balance (NOK): 37.7B v 33.7B prior

(EU) Euro Zone Feb Trade Balance seasonally adj: €12.0B v €9.7Be; Trade Balance unadj: €10.4B v €5.0Be

Fixed Income:

(IT) Italy BTP Italia 2017 retail bond issue order book said to top €2.9B

(NL) Netherlands Debt Agency (DSTA)sold total €2.8B vs. €2.0-4.0B indicated range in 3-month and 6-month Bills

Sold €1.46B vs. €2.0B indicated in 3-month bills; Yield: -0.027% v -0.025% prior; Bid-to-cover: 2.55x v 2.53x prior

Sold €1.37B vs. €2.0B indicated in 6-month Bills; Avg Yield: -0.011% v -0.009% prior; Bid-to-cover: 2.31x v 2.77x prior

SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM

Equities

FTSE 100 -1% at 6,323, DAX -0.70% at 7,694, CAC-40 -0.80% at 3,699, IBEX-35 -0.80% at 7,972, FTSE MIB -0.90% at 15,640, SMI -0.80% at 7,699, S&P 500 Futures 0.40% at 1,575

European equity markets are broadly lower, amid the release of weaker than expected Chinese data (Q1 GDP and March industrial production), as well as sharp declines in gold and silver prices. The miner heavy FTSE 100 has led the declines in Europe, as shares of gold and silver miner Fresnillo have declined by over 8%. European banks are broadly lower, led by Credit Agricole and SocGen. During the U.S. morning session, Citigroup is due to give is Q1 earnings. Automakers in Germany have underperformed the overall DAX index, amid concerns on China's March retail sales data.

U.K. Movers [Betfair +10% (takeover talks); Ladbrokes -7% (profit warning), Ocado -6.5% (broker commentary), Tullow Oil -4.5% (unfavorable drilling update), Declines in gold and silver prices have led to sharp declines in precious metals companies (Fresnillo -8%), BHP -2.5% (decline in copper prices, China GDP data)]

Germany movers [Sky Deutschland +2.5% (broker commentary), E.ON +1.5% (broker commentary), Leoni +1% (broker commentary); BMW -1.8% (China retail sales), Continental -1.5% (cautious outlook commentary), Siemens -1.5% (cautious outlook commentary), Henkel -0.80% (cautious Q1 commentary)]

France movers [Saint-Gobain +1% (broker commentary)]

Italy movers [Lottomatica 1.5% (contract award)]

Switzerland movers [Kuehn & Nagel +1% (Q1 profits and sales rose y/y)]

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