Economic Data
(CH) Swiss July Unemployment Rate: 2.7% v 2.7%e; Unemployment Rate Seasonally Adj: 2.9% v 2.9%e
(RU) Russia July Official Reserve Assets:$510.5B v $505.0Be
(FI) Finland Jun Preliminary Trade Balance: +€55M v -€10M prior
(ZA) South Africa July Net Reserves: $48.0B v $48.1Be; Gross Reserves: $49.4B v $49.2Be
(HU) Hungary Jun Preliminary Industrial Production M/M: -2.2 v +3.5% prior; Y/Y: 0.6% v 2.2%e
(CH) Swiss SNB July Foreign Currency Reserves (CHF): 406.5B v 365.1B prior
(IS) Israel July Foreign Currency Balance: $75.4B v $75.1B prior
(CH) Swiss July CPI M/M: -0.5% v -0.6%e; Y/Y: -0.7% v -0.8%e
(CH) Swiss July CPI EU Harmonized M/M: -0.3% v -0.2% prior; Y/Y: -0.8% v -1.2% prior
(AT) Austria July Wholesale Price Index M/M: +0.8% v -1.3% prior; Y/Y: 1.2% v 0.2% prior
(NL) Netherlands Jun Industrial Production M/M: -0.6% v +0.3%e; Y/Y: -2.4% v 0.0% prior; Industrial Sales Y/Y: -2.7% v -3.3% prior
(SE) Sweden July Budget Balance (SEK): -2.2B v -28.1B prior
(IT) Italy Jun Industrial Production M/M: -1.4% v -1.0%e; Y/Y: -8.2% v -6.6% prior; Industrial Production WDA Y/Y: -8.2% v -6.5%e
(CZ) Czech July International Reserves: $39.0B v $39.2B prior
(NO) Norway Jun Industrial Production M/M: 0.6% v 1.5% prior; Y/Y: 7.7% v 13.0% prior
(NO) Norway Jun Manufacturing Production M/M: 0.8% v 0.4%e; Y/Y: 4.3% v 1.7% prior
(TW) Taiwan July Total Trade Balance: $0.9B v $2.9Be; Total Exports Y/Y: -11.6% v -7.7%e; Total Imports Y/Y: -3.2% v -7.0%e
(HK) Hong Kong July Foreign Currency Reserves: $296.2B v $294.9B prior
(UK) Jun Industrial Production M/M: -2.5% v -3.5%e; Y/Y: -4.3% v -5.3%e
(UK) Jun Manufacturing Production M/M: -2.9% v -4.3%e; Y/Y: -4.3% v -5.7%e
(IT) Bank of Italy (BOI) July Balance-Sheet Aggregates: ECB funding to Italian banks at €283.3B v €281.4B prior
(IC) Iceland July Preliminary Trade Balance (ISK): 3.5B v 4.8B prior
(IT) Italy Q2 Preliminary GDP Q/Q: -0.7% v -0.8%e; Y/Y: -2.5% v -2.5%e
(SG) Singapore July Foreign Reserves: $244.1B v $243.4B prior
(ZA) South Africa July SACCI Business Confidence: 90.9 v 94.9 prior
Fixed Income:
(EU) ECB allotted €133.4B vs. €130Be in 7-Day Main Refinancing Tender at fixed 0.75%
(EU) ECB allotted €25.2B vs. €25Bein 1-Month Tender at fixed 0.75%
(SA) South Africa sold total ZAR2.1B vs. ZAR2.1B indicated in 2023, 2041 and 2048 bonds
(CH) Switzerland sold CHF699.9M in 3-Month Bills; Avg Yield: -0.593% v -0.616% prior
(HU) Hungary Debt Agency (AKK) sold HUF45B vs. HUF45B indicated in 3-Month Bills; Avg Yield 6.85% v 6.87% prior; Bid-to-cover: 1.88x v 1.46x prior
(GR) Greece Debt Agency (PDMA) sold ?825M vs. €625M indicated in 26-week Bills; Avg Yield 4.68% v 4.70% prior; Bid-to-cover: 2.06x v 2.16x prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Notes/Observations
Australia's RBA leaves interest rates unchanged, as expected
IMF pushing Europe to ease Greek burden
UK Jun industrial production beats forecasts
Swiss CPI remains in negative territory
Italy GDP contracts again but in line with expectations
Equities
Indices: FTSE 100 -0.25% at 5795, DAX +0.40% at 6948, CAC-40 +0.50% at 3418, IBEX-35 +0.40% at 7080, FTSE MIB +0.30% at 14,389, SMI -0.25% at 6446, S&P 50 0 Futures +0.20% at 1393
Following the mixed open, Continental European indices are mostly higher led by the Spanish IBEX. However, indices have pared gains, amid the move higher in Spanish and Italian 2-year bond yields. In London the FTSE 100 has underperformed, as shares in Standard Chartered have lost over 20%. European banks are trading mixed. Outperformers in the banking sector include Unicredit, Santander and Credit Agricole, while laggards include UK banks and Intesa. Resources related companies are mostly higher, tracking the gains being seen for commodity prices. Additionally, better than expected results from Xstrata have supported the mining sector.
Standard Chartered has lost over 21% on concerns that the company could lose its license to operate in NY amid allegations related to certain transactions with Iran. Xstrata [XTA.UK] is higher by over 2.5%, as the company's H1 EBITDA beat analyst expectations. Shares of Intercontinental Hotels [IHG.UK] have risen by more than 3% on better than expected H1 results. In other UK movers, Premier Foods [PFD.UK] is higher by over 2% (reported H1 results, reaffirmed FY outlook) and Legal & General has declined by ~2% (issued H1 results). Large German utility E.ON [EOAN.DE] is up by over 1%, after the company announced H1 guidance. Specialty chemicals company Lanxess [LXS.DE] has lost over 3%, as the company guided its H2 operating profit to be flat y/y, after Q2 adj operating profit rose 4.2% y/y. Munich Re [MUV2.DE] is trading slightly higher following the release of its Q2 results.
Dutch materials firm DSM [DSM.NL] has lost over 3%, as the company reported weaker than expected Q2 results, amid weakness in the material sciences/caprolactam business. Shares of Danske Bank [DANSKE.DK] have gained by more than 3%, as the company reported better than expected Q2 results.