Notes/Observations
Moody's Cuts UK Sovereign Rating to Aa1 from Aaa' GBP hits 2 year low.
Haruhiko Kuroda said to have become leading candidate for replacing BOJ gov Shirakawa; JPY currency at 33-month lows with Nikkei at 4 highs.
China Feb HSBC Manufacturing PMI at 4-month low but holds above the 50 level.
Nicos Anastasiades wins Cyprus presidential election.
Italian election results: polls close at 09:00 ET (14:00 GMT); first exit polls likely soon after.
Italy sells upper end of amount in its 2-year bonds at a higher yield ahead of election results
Economic Data
(FI) Finland January PPI M/M; +0.2% v -0.2% prior; Y/Y: 0.7 v 1.5% prior
(HU) Hungary December Retail Trade Y/Y: -2.1% v -3.9%e
(CZ) Czech February Business Confidence: 2.3 v 1.7 prior; Consumer Confidence: -22.3 v -27.8 prior; Composite: -2.6 v -4.2 prior
(ES) Spain January Producer Prices M/M: 1.1% v 0.0% prior; Y/Y: 2.6% v 3.3% prior
(EU) ECB: €1M borrowed in overnight loan facility vs. €1.0M prior; €166.4B parked in deposit facility vs. €162.2B prior
(HK) Hong Kong Jan Trade Balance (HKD): -27.5b v -29.0Be; Exports Y/Y: 17.6% v 19.2%e; Imports Y/Y: 23.9% v 25.0%e
(PL) Poland January Retail Sales M/M: -20.6% v -22.4%e; Y/Y: 3.1% v 0.7%e
(PL) Poland January Unemployment Rate: 14.2% v 14.2%e
(IT) Italy January Non-EU Trade Balance: -€2.3B v +€3.2B prior
(RO Romania January Money Supply Y/Y: 3.2% v 4.6% prior
(UK) January BBA Loans for House Purchase: 32.3K v 34.0Ke
Fixed Income:
(IT) Italy Debt Agency (Tesoro) sold €2.82B vs. €2.0-3.0B indicated range in Zero Coupon Dec 2014 CTZ; Avg Yield 1.682% v 1.434% prior; Bid-to-cover:1.65 x v 1.45x prior
(IT) Italy Debt Agency (Tesoro) sold total €1.25B vs. €0.5-1.25B indicated range in 2021 and 2026 BTPi
Sold €941M in 2.1% I/L Sept 2021 BTPi; Yield 2.79% v 3.33% prior; Bid-to-cover: 1.76x v 2.13x prior
Sold €309M in 3.1% I/L Sept 2026 BTPi Bond; Avg Yield 3.23% v 3.49% prior; Bid-to-cover: 3.31x v 3.27x prior
(DE) Germany sold €1.939B in 12-Month BuBills; Avg Yield 0.0353% v 0.1319% prior; Bid-to-cover:2.2 x v 1.8x prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Equities
Indices: FTSE 100 +0.50% at 6,365, DAX +1.2% at 7,750, CAC-40 +0.70% at 3,730, IBEX-35 +0.80% at 8,245, FTSE MIB +0.80% at 16,371, SMI +0.50% at 7,591, S&P 500 Futures at +0.20% at 1,518
European equity markets are broadly higher, as UK banks have risen despite Moody's downgrade of the UK's AAA sovereign rating. Additionally, Italy's FTSE MIB has moved higher amid some hopes that the lower than expected turnout for Italy's elections could be negative for Berlusconi. Markets have also gained, amid the strength seen in the EUR/JPY currency pair. Commodity related shares are broadly higher, despite weaker than expected Chinese manufacturing PMI figures.
UK movers [Thornton's +10% (H1 profits and sales rose y/y),Senior Plc +6% (FY results rose y/y, raised dividend by 22%), Antofagasta +2.5% (broker commentary), Bunzl +1.4% (raised dividend by 7%) Banks are broadly higher, despite Moody's downgrade of the UK's sovereign rating; International Ferro Metals -6% (H1 sales declined y/y), Reckitt Benckiser -4% (FDA denied citizen's petition related to buprenorphine-containing products), Pearson -3% (FY sales below ests, sees flat profits in 2013)]
France movers [Vivendi +3% (received Brazilian approval to sell GVT); Archos -14% (sales declined y/y due to competition)]
Germany movers [Wirecard +3% (mobile payment partnership with Vodafone), K+S +3% (broker commentary); Merck KGaA -0.30% (study for cilengitide missed primary endpoint)]
The Netherlands movers [Postnl +5.5% (Q4 sales above ests), TNT Express +2.5% (new CEO)]