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European Market Update: Equity Markets Trading Higher - April 19, 2013

Published 04/19/2013, 06:14 AM
Updated 01/01/2017, 02:20 AM
UK100
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DE40
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ES35
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IT40
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MSFT
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DE
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STLAM
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HOLN
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UBSN
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CBKG
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LAFP
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LVMH
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TEF
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LXSG
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AAL
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WMH
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SXS
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PH
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GR
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IBM
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GC
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HG
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FRES
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SMI
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MAR
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FI
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CY_old
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NWJ
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NL
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GART
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PD
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SBSG
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Italy: third round of Presidential elections process doomed from the get go

Notes/Observations

Japan FM Aso informed G20 that BoJ policy was targeting price stability (not FX rate). Japan faced no opposition and reconfirmed G20 commitment on commitment on market driven FX.

German FinMin Schaeuble: European reforms have set the basis for sustainable growth; G20 must honour deficit commitments.

EU's Rehn: EU must ease the tight credit situation in Southern Europe.

French FM: repeats France will not meet EU deficit targets in order to avoid recession.

Italy: third round of Presidential voting looks doomed for failure; Centre-Left (PD) Bersani proposed former PM Prodi to party electors its candidate.

(CY) Cyprus parliament approves increase in corporate tax rate; as expected as part of MOU with Troika.

Police encounter massive shootout with Boston marathon bombing suspects; situation remained fluid.

Economic Data

(RU) Russia Narrow Money Supply w/e Apr 15th (RUB): 7.57T v 7.43T prior.

(DE) Germany Mar Producer Prices M/M: -0.2% v +0.1%e; Y/Y: 0.4% v 0.7%e

(PH) Philippines Mar Balance of Payments: +$452.0M v -$960M prior.

(ES) Spain Feb Industrial Orders (unadj) -6.9% y/y, Industrial Orders WDA -2.8% y/y

(NL) Netherlands Apr Consumer Confidence: -35 v -41 prior.

(IT) Italy Feb Industrial Orders M/M: -2.5% v -1.4% prior; Y/Y: -7.9% v -3.3% prior.

(IT) Italy Feb Industrial Sales M/M: -1.0% v -1.4% prior; Y/Y: -4.7% v -3.6% prior.

(EU) Eurozone Feb Current Account Seasonally Adj: €16.3B v €13.8B prior; Current Account nsa: +€12.1Bv -€5.6Bprior

(UK) Mar Gross Mortgage Lending: £11.6B v £10.6B prior - CML

(GR) Q4 Greece disposable household income: €32.3B v €35.4B y/y

Fixed Income:

None seen

SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM

Equities

FTSE 100 +0.40% at 6,266, DAX +0.40% at 7,500, CAC-40 +0.90% at 3,631, IBEX-35 +1.2% at 7,904, FTSE MIB +1.4% at 15,698, SMI +0.50% at 7,614, S&P 500 Futures +0.60% at 1,543

European equity markets are trading higher led by the FTSE MIB, as the government formation process in Italy continues. Germany's DAX has lagged, as shares of SAP have moved lower on disappointing earnings (follows weaker than expected quarterly sales from Google, Microsoft and IBM). The DAX has also been weighed down by ex-dividends. European banks are broadly higher, led by shares of BNP and UBS, which have been supported by positive analyst commentary. Shares of Commerzbank have lagged, as the company made cautious comments regarding Q1. Gains in gold and oil prices have supported resource related firms. U.S. companies seen reporting quarterly results later on Friday include GE, McDonald's and Schlumberger.

UK movers [William Hill +4.5% (Q1 Rev +15% y/y), Fresnillo +2% (rebound in precious metals prices), Anglo American +1.5% (Q1 copper production rose); Spectris -12% (warned on sales outlook)]

Germany movers [Lanxess +4% (takeover speculation), Stratec Biomedical +3.5% (broker commentary) ;RWE -7% (ex-dividend), Bilfinger Berger -3.5% (ex-divided), SAP -2% (Q1 results below ests)]

France movers [L'Oreal +3% (Q1 sales above ests), Lafarge +2% (broker commentary), LVMH +1.5% (broker commentary), BNP +1.5% (broker commentary)]

Spain movers [Telefonica +1.5% (broker commentary)]

Italy movers [Fiat Industrial +3.5% (broker commentary)]

Switzerland movers [UBS +3% (broker commentary); Holcim -0.50% (broker commentary)]

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