Economic Data
(EU) ECB: €2.3B borrowed in overnight loan facility vs. €2.1B prior; €759.7B parked in deposit facility v €741.9B prior
(ZA) South Africa Apr Private Sector Credit Y/Y: 7.3% v 9.0%e; M3 Money Supply Y/Y: 6.2% v 7.4%e
(HU) Hungary Apr Unemployment Rate: 11.5% v 11.6%e
(ES) Spain May Preliminary Consumer Price Index Y/Y: 1.9% v 2.1%e; CPI EU Harmonized Y/Y: 1.9% v 2.0%e
(CH) Swiss May KOF Swiss Leading Indicator: 0.81 v 0.40e
(AT) Austria Apr Producer Price Index M/M: 0.2% v 0.0% prior; Y/Y: 1.1% v 1.4% prior
(SE) Sweden Q1 Current Account (SEK): 69.5B v 50.1B prior
(SE) Sweden Q1 GDP Q/Q: 0.8% v 0.2%e; Y/Y: 1.5% v 0.9%e
(SE) Sweden Mar Non-Manual Workers Wages Y/Y: 2.6% v 2.5% prior
(EU) Euro Zone Apr M3 Money Supply Y/Y: 2.5% v 3.4%e; M3 three-month Avg. 2.7% v 3.1%e
(IT) Italy Apr PPI M/M: 0.3% v 0.3%e; Y/Y: 2.5% v 2.3%e
(NO) Norway Q1 Manufacturing Wage Index Q/Q: 0.7% v 1.4% prior
(UK) Apr Net Consumer Credit: £0.3B v £0.2Be; Net Lending: £1.1B v £1.0Be
(UK) Apr Mortgage Approvals: 51.8K v 50.1Ke
(UK) Apr M4 Money Supply M/M: +1.1% v -0.7% prior; Y/Y: -3.8% v 4.8% prior; M4 Ex IOFCs 3M Annualized: 3.8% v 7.1% prior
(EU) Euro Zone May Business Climate Indicator: -0.77 v -0.67e; Consumer Confidence: -19.3 v -19.3e; Economic Confidence: 90.6 v 91.9e; Industrial Confidence: -11.3 v -10.2e; Services Confidence: -4.9 v -2.8e
(PT) Portugal May Consumer Confidence: -52.6 v -53.3 prior; Economic Climate: -4.6 v -4.7 prior
(BE) Belgium May CPI M/M: 0.0% v 0.1% prior; Y/Y: 2.8% v 3.2% prior
Fixed Income:
(IN) India sold INR150B vs. INR150B indicated in 3-month and 12-month Bills
(EU) ECB allotted $ in 7-day USD Liquidity Tender at fixed 0.66% vs. $300M prior
(SW) Sweden sells SEK2.5B vs. SEK2.5B in 3.5% 2022 Bonds; Yield 1.3958%
(EU) ECB allotted € in 3-month Tender (MRO) vs. €21,3B prior
(IT) Italy Debt Agency (Tesoro) sold total €5.73B vs. €4.5-6.25B indicated range in 2017 and 2022 BTP bonds
Sold €3.39B vs. €2.5-3.5B indicated range in new 4.75% Jun 2017 BTP; avg yield 5.66% v 4.86% prior; Bid-to-cover: 1.35x 1.34x prior
Sold €2.34B vs. €2.00-2.75B indicated range in 5.5% Sept 2022 BTP reopening; avg yield 6.03% v 5.84% prior; Bid-to-cover: 1.40x v 1.48x prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Notes/Observations
ECB refutes claim it rejected Spain govt plan to indirectly tap into its cash in order to recapitalize Bankia;Would advise on such development of plans
EU might extend deadline for Spain to each 3% GDP Deficit to 2014
Spain sovereign downgrade adds to cautious market mood
Bank of Spain gov announces early retirement
Idea of European Redemption Pact gaining momentum
Italian 5-year and 10-year bond auction labeled 'soggy'; yields climb
Equities
Indices: FTSE 100 -1.5% at 5311, DAX -1.2% at 6323, CAC-40 -1.4% at 3040, IBEX-35 -1.5% at 6158, FTSE MIB -1.1% at 12,958, SMI -0.20% at 5902
European equity indices opened the session lower, on losses in banks and resource-related companies. Spain's IBEX-35 has continued to underperform, as Bankia has moved lower by over 10%, amid the lack of clarity related to how Spain will fund the firm's recapitalization plan. In Greece, the Athens Stock Exchange (ASE) has declined by 2%, amid weakness in banking sector.
UK-listed grocer Booker Group [BOK.UK] has risen by over 7%, after announcing plans to acquire German-based Metro's UK unit for approx. £140M. SportingBet [SBT.UK] has declined by over 3% following the release of its quarterly earnings report. In other UK movers, Cable & Wireless Communications [CWC.UK] and Marks & Spencer [MKS.UK] have been weighed down by ex-dividend factors. In Italy, Fiat Industrial [FI.IT] has gained over 2% on its plan to merge with CNH Global, Fiat Industrial already owns a 88% stake in CNH. Banco Popolare di Milano [PMI.IT] is weaker by more than 5%, as the company is not planning to pay interest on certain preferred securities.