Economic Data
(FR) France Aug Consumer Price Index M/M: 0.7% v 0.6%e; Y/Y: 2.1% v 2.0%e; CPI Ex Tobacco Index: 125.06 v 125.04e
(FR) France Aug CPI Harmonized M/M: 0.7% v 0.6%e; Y/Y: 2.4% v 2.3%e
(IN) India July Industrial Production Y/Y: 0.1% v 0.5%e
(FI) Finland July Final Retail Sales Volume Y/Y: 0.0% v 0.0% prior
(DE) Germany Aug Final Consumer Price Index M/M: 0.4% v 0.3%e; Y/Y: 2.1% v 2.0%e
(DE) Germany Aug Final CPI EU Harmonized M/M: 0.4% v 0.3%e; Y/Y: 2.2% v 2.2%e
(SE) Sweden Aug PES Unemployment Rate: 4.8% v 4.6%e
(FR) France July Current Account: -€2.5B v -€4.8B prior
(ES) Spain Aug Consumer Price Index M/M: 0.6% v 0.6%e; Y/Y: 2.7% v 2.7%e
(ES) Spain Aug CPI EU Harmonized M/M: 0.5% v 0.5%e; Y/Y: 2.7% v 2.7%e
(ES) Spain Aug CPI Core M/M: 0.2% v 0.2%e; Y/Y: 1.4% v 1.4%e
(IT) Italy July Industrial Production sa M/M: % v -0.2%; Y/Y: % v -4.4%; Industrial Production wda Y/Y: % v -7.3%
(UK) Aug Jobless Claims Change: -15.0K v 0.0Ke (Flat); Claimant Count Rate:4.8% v 4.9%e v 4.9%e
(UK) July Average Weekly Earnings 3M/Y: 1.5% v 1.6%e; Weekly Earnings ex-Bonus 3M/Y: 1.9% v 1.8%e
(UK) July ILO Unemployment Rate: 8.1% v 8.0%e; Employment Change: 236K v 169Ke
(EU) Eurozone July Industrial Production M/M: 0.6% v 0.1%e; Y/Y: -2.3% v -3.3%e
(PT) Portugal Aug Consumer Price Index M/M:-0.1 % v -0.4%e; Y/Y: 3.1% v 2.9%e
(PT) Portugal Aug CPI EU Harmonized M/M: -0.1% v -0.2%e; Y/Y: 3.2% v 2.8%e
Fixed Income
(IN) India sold INR120B vs. INR120B indicated in 3-month and 6-month Bills
(RU) Russia sold RUB9.9B vs.RUB10B indicated in 2027 OFZ bonds; Yield 8.14% vs. guidance of 8.13-8.18%
(SE) Sweden sold total SEK10.0B in 3-month and 6-month Bills
(EU) ECB allotted $3.8B in 7-Day USD Liquidity Tender at fixed 0.63% vs. $2.2B prior
(EU) ECB allotted $3.7B in 3-month USD Liquidity Tender at fixed 0.63% vs. $4.5B prior
(IT) Italy Debt Agency (Tesoso) sold total €12.0B vs. €12.0B indicated in 3-month and 12-month Bills
Sold €3.0B vs. €3.0B indicated in 3-month Bills; Avg Yield 0.70% v 0.865% prior; Bid-to-cover: 2.25x v 2.49x prior
Sold €9.0B vs. €9.0B indicated in 12-month Bills; Avg Yield 1.692% v 2.767% prior; Bid-to-cover: 1.65x v 1.69x prior
(CH) Switzerland sold total CHF933.5M in 2015 and 2024 Bonds
(DE) Germany sold €3.97Bin 0.50% Oct 2017 BOBL; Avg Yield 0.61% v 0.31% prior; Bid-to-cover: 1.4x v 2.6x prior
Notes/Observations
German Constitutional Court ruling allows Germany to ratify ESM
Equities
Indices: FTSE 100 +0.30% at 5809, DAX +0.80% at 7369, CAC-40 +0.70% at 3561, IBEX-35 +0.90% at 8002, FTSE MIB +0.80% at 16,360, SMI +0.30% at 6523, S&P 500 Futures +0.50% at 1437.50
European equity indices are trading higher, but off of their best levels after Germany's Constitutional Court rejected the injunction which sought to halt the ESM/fiscal compact. The best performing indices on the session have included the Spanish IBEX-35 and the Italian FTSE MIB. The German court ruling has been supportive to bank shares and outperformers in the sector include French and Italian banks.
Resource related companies are broadly higher, amid the rise in commodity prices. Looking ahead, the focus of the markets is expected to be Thursday's US FOMC decision, as some traders have raised their bets for more quantitative easing following the weaker than expected Auguist nonfarm payrolls data.
Large UK home improvement retailer Kingfisher [KGF.UK] has moved between gains and losses, as the company reported weaker than expected H1 results and raised its dividend by ~25%. Retailer Laura Ashley [ALY.UK] is higher by over 7%, following the release of its H1 results.