Risk Aversion Remains Heightened In SessionEconomic Data
(EU) ECB: €2.0B borrowed in overnight loan facility €1.6B prior; €788.4B parked in deposit facility v €788.2B prior.
(EU) Eurozone Apr EU 25 New Car Registrations: -6.9% v -7.0% prior (7th straight monthly decline).
(TR) Turkey Apr Consumer Confidence: 91.1 v 93.9 prior.
(AT) Austria Apr Consumer Price Index M/M: 0.4% v 1.1% prior; Y/Y: 2.3% v 2.4% prior.
(CZ) Czech Mar Current Account (CZK): 16.8B v 13.9Be.
(IT) Italy Mar Total Trade Balance: +€2.1B v -€1.1B prior; Trade Balance EU: €1.6B v €416M prior.
(UK) Apr Jobless Claims Change: -13.7K v +5.0Ke; Claimant Count Rate: 4.9% v 5.0%e.
(UK) Mar Average Weekly Earnings 3M/Y: 0.6% v 1.0%e; Weekly Earnings ex-Bonus 3M/Y: 1.6% v 1.4%e.
(UK) Mar ILO Unemployment Rate: 8.2% v 8.4%e.
(EU) Eurozone CPI M/M: 0.5% v 0.5%e; Y/Y: 2.6% v 2.6%e; Core CPI Y/Y: 1.6% v 1.5%e.
(CH) Swiss May Credit Suisse ZEW Expectations Survey: -4.0 v +2.1 prior.
(IC) Iceland Central Bank (Sedlabanki ) raised 7-Day Lending Rate by 50bps to 5.50%
(EU) Eurozone Mar Trade Balance Seasonally Adj: €4.3B v €3.8Be; Trade Balance unadj: €8.6B v €4.0Be
Fixed Income:
(RU) Russia cancelled its 10-Year OFZ Bonds.
(EU) ECB alloted $300M in 7-Day USD Liquidity Tender at fixed 0.66% vs. $326.3M prior.
(FR) France Debt Agency (AFT) sold €8.0B vs.€7-8B indicated range in 2014, 2015, 2016 and 1017 BTANs, OATs.
Sold €2.505B in 0.75% Sept 2014 BTAN; Avg Yield 0.74% v 0.85% prior; Bid-to-cover: 2.97x v 2.29x prior.
Sold €945M in 3.5% Apr 2015 OAT; Avg Yield 0.95% v 1.06% prior; Bid-to-cover: 4.58x v 3.0x prior.
Sold €895M in 3.25% Apr 2016 OAT; Avg Yield 1.37% v 2.80% prior; Bid-to-cover: 4.97x v 4.50x prior.
Sold €3.651B in 1.75% Feb 2017 BTAN; Avg Yield 1.72% v 1.83% prior; Bid-to-cover: 2.04x v 2.69x prior.
(DE) Germany sold €4.107B in 1.75% July 2022 Bund; Avg Yield 1.47% (fresh record low) v 1.77% prior; Bid-to-cover: 1.5x v 1.1x.
Notes/Observations
China's "Big Four" state-run banks have issued almost no new yuan loans in the first half of May.
Germany and ECB said to be at odds over EFSF guarantees.
UK Claimant Count registers its largest monthly decline since July 2010.
ECB holding a previously scheduled meeting in Frankfurt.
Equities
FTSE 100 -1.1% at 5378, DAX -1% at 6335, CAC-40 -0.10% at 3036, IBEX-35 -1% at 6636, FTSE MIB -0.40% at 13,253, SMI -0.05% at 5860.
European equity indices opened the session broadly lower, as indices have been pressured by banks. Additionally, resource-related companies opened lower following cautious comments out of BHP about the outlook for commodity prices. Concerns about Greece have continued to weigh on the markets, following reports from yesterday that the country is expected to hold elections in mid-June.
Also, Greek banks have been in focus, amid reports that deposit outflows have accelerated following the recent Greek parliamentary elections. In terms of upcoming event risks, the US Fed is due to release the minutes from its most recent policy meeting later today. Also on Thursday's session, Spain is due to sell 2015 and 2016 bonds.
UK-listed construction and engineering services company Lamprell [LAM.UK] has declined by over 60%, after disclosing a profit warning. Additionally ,shares of Bovis Homes [BVS.UK] and Land Securities are trading lower, following the release of their respective earnings reports. German names Rheinmetall [RHM.DE], Lanxess [LXS.DE], Prosieben [PSM.DE] and Symrise [SY1.DE] have all been weighed down by ex-dividend factors.
In France, EADS [EAD.FR], EADS has gained over 1% following its Q1 earnings release. Swiss luxury watch maker Richemont [CFR.CH] has gained over 4%, as the company reported better than expected FY11 results. Danish shipping name AP Moller Maersk [MAERSKB.DK] has lost over 5% amid concerns about the company's 2012 outlook. Shares of Italian bank, Banca Monte Paschi have lost more than 2%, after the company reported a y/y decline in its Q1 net profit. Monte Paschi also reported a 4.9% sequential rise in its bad loans in Q1.