Economic Data
(JP) Japan Apr Consumer Confidence: 40.0 v 40.8e
(SG) Singapore Mar Retail Sales M/M: 1.6% v 0.2%e; Y/Y: 9.1% v 7.2%e; Retail Sales Ex Auto Y/Y: 6.5% v 3.5%e
(FR) France Apr Consumer Price Index M/M: 0.1% v 0.2%e; Y/Y: 2.1% v 2.2%e; CPI Ex Tobacco Index: 124.80 v 124.84e
(FR) France Apr CPI EU Harmonized M/M: 0.2% v 0.2%e; Y/Y: 2.4% v 2.5%e
(FR) France Q1 Preliminary Gross Domestic Product Q/Q: 0.0% v 0.0%e; Y/Y: 0.3% v 0.5%e
(FI) Finland Mar GDP Indicator: 2.4% v 3.5% prior
(DE) Germany Q1 Preliminary GDP Q/Q: 0.5% v 0.1%e; Y/Y: 1.7% v 0.9%e; GDP wda Y/Y: 1.2% v 0.8%e
(FR) France Q1 Preliminary Non-Farm Payrolls Q/Q: +0.1 v -0.2%e; Wages Q/Q: 0.9% v 0.7%e
(AT) Austria Q1 GDP Q/Q: 0.2 v 0.0% prior; Y/Y: 1.9 v 0.8% prior
(CZ) Czech Q1 Preliminary GDP Q/Q: -1.0% v +0.1%e; Y/Y: -1.0% v +0.2%e
(HU) Hungary Q1 Preliminary GDP Q/Q: -0.7% v -0.5%e; Y/Y: -1.3% v -0.1%e
(HU) Hungary Mar Final Industrial Production M/M: 0.6% v 0.6% prelim; Y/Y: 0.6% v 0.6% prelim
(TR) Turkey Feb Unemployment Rate: 10.4% v 10.2% prior
(FI) Finland Mar Current Account: -€40M v -€230M prior
(DK) Denmark Apr Wholesale Prices M/M: 0.2 v 0.8% prior; Y/Y: 2.2% v 2.7% prior
(NL) Netherlands Q1 Preliminary GDP Q/Q: -0.2% v -0.3%e; Y/Y: -1.1% v -1.1%e
(NL) Netherlands Mar Trade Balance: €4.1B v €2.9B prior
(SE) Sweden Q1 Total Number of Employees Y/Y: 2.3% v 2.8%e
(TR) Turkey Apr Budget Balance (TRY) 1.4B v 1.1B y/y
(IT) Italy Q1 Preliminary GDP Q/Q: -0.8% v -0.7%e; Y/Y: -1.3% v -1.2%e
(NO) Norway Apr Trade Balance (SEK): 38.4B v 46.4B prior
(UK) Mar Visible Trade Balance: -£8.6B v -£8.4Be; Total Trade Balance: -£2.7B v -£2.9Be; Trade Balance Non EU: -£4.1B v -£4.7Be
(GR) Greece Q1 Advanced GDP Q/Q: %; Y/Y: -6.2% v -7.5% prior
(EU) Euro Zone Q1 Advanced GDP Q/Q: 0.0% v -0.2%e; Y/Y: 0.0% v -0.2%e
(DE) Germany May Zew Economic Sentiment: 10.8 v v 19.0e; Current Situation: 44.1 v 39.0e
(EU) Euro Zone May ZEW Economic Sentiment: -2.4 v +13.1 prior
(PT) Portugal Q1 Preliminary GDP Q/Q: -0.1%% v -1.0%e; Y/Y: -2.2% v -3.1%e
Fixed Income:
(GR) Greece Debt Agency (PDMA) sold €1.3B v €1.0B in 13-week Bills; avg yield 4.34% v 4.20% prior; Bid-to-cover: 2.32x v 2.46x prior
(SE) Sweden sold SEK2.5B vs. SEK2.5B indicated in 3.5% 2022 Bonds; avg yield 1.4696%
(ZA) South Africa sold total ZAR2.1B vs. ZAR2.1B indicated in 2018, 2026 and 2041 bonds
(EU) ECB allotted €43.0B vs. €39.0Be in 7-Day Main Refinancing Tender at fixed 1.0%
(HU) Hungary Debt Agency (AKK) sold HUF45B in 3-Month Bills; Avg Yield 7.16% v 7.16% prior; Bid-to-cover: 2.02x v 2.40x
(UK) DMO sold £2.75B in 5% 2025 Gilts; Avg Yield 2.251% v 2.356% prior; Bid-to-cover: 2.09x v 1.8x prior; Tail 0.2bps vs. 0.4bps prior
(BE) Belgium Debt Agency sold total 3.39B vs. €3.0-3.5B in 3-month and 12-month Bills
Sold €1.465B in 3-month Bills; Avg yield 0.201% v 0.179% prior; Bid-to-cover: 3.97x v 2.62x prior
Sold €1.925B in 12-month Bills; Avg yield 0.627% v 0.734%prior; Bid-to-cover: 2.36x v 2.32x prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Notes/Observations
Moodys cuts Italian banking sector (as expected)
RBA minutes: Need to cut rates tp offset higher bank rates; CPI has slowed
Greece will make bond payment of €430M today
German, Eurozone & Portugal GDP beats expectations; Italy, emerging Europe do not
Greek President Papoulias will attempt to persuade leaders to accept a technocratic government to avert another round of elections
Hollande inaugurated as France's new President
Equities
FTSE 100 +0.10% at 5469, DAX +0.20% at 6462, CAC-40 +0.40% at 3071, IBEX 35 -0.40% at 6783, FTSE MIB -0.30% at 13,622, SMI +0.10% at 5882
European equity indices opened the session slightly higher, following the losses seen on Monday's session. Additionally, banks opened higher, but are currently trading in negative territory, as peripheral government bond yields have moved higher. The better than expected Q1 GDP data out of Germany has been offset by disappointing growth figures out of Italy and mixed German ZEW data. Additionally, concerns related to Greece's political situation and Spanish banks have continued to linger. In Greece, the Athens Stock Exchange has risen by more than 0.50%, while Greece's 10 yr bond yield has risen by over 10bps on the session amid reports that Greece will make the €430M debt payment, which is due today.
UK-listed Smiths Group [SMIN.UK], Babcock International [BAB.UK], Afren [AFR.UK] and G4S [GFS.UK] are all trading higher following the release of their respective financial reports. Shares of Germany's largest steel maker, Thyssenkrupp [TKA.DE] have declined by over 2% on the session, as the company reported weaker than expected quarterly revenues. Merck KGAA [MRK.DE] and Air Berlin are also trading lower after their respective Q1 earnings reports. In other German movers, Phoenix Solar [PS4.DE] has gained over 9% following its quarterly earnings release, while Sky Deutschland [SKYD.DE] is higher by over 5% as the company reported better than expected quarterly revenues.
In France, shares of Iliad [ILD.FR] are higher by over 4%, as the company's Q1 sales beat analyst expectations. Additionally, Vivendi [VIV.FR] has gained more than 3% on better than expected Q1 results. Swiss private bank Julius Baer is lower by more than 2%, as the company said its year to date gross margin was below the level seen in 2011. Italian banks opened the session mostly higher, despite the decision by Moody's to downgrade 26 Italian banks. Italian banking name Intesa [ISP.IT] is due to report its quarterly earnings later today.