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Markets Eye Whether BOE Will Extend Its Asset Purchase Program

Published 05/10/2012, 07:27 AM
Updated 01/01/2017, 02:20 AM
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Greece Continues To Struggle To Form New GovernmentEconomic Data

(RU) Russia Central Bank (CBR) left Refinancing Rate unchanged at 8.00%, as expected.

(ID) Indonesia Central Bank left Reference Rate unchanged at 5.75%, as expected.

(FI) Finland Mar Industrial Production M/M: -1.5% v -0.2%e; Y/Y: -5.7% v -2.2%e.

(FR) Bank of France Apr Business Sentiment: 95 v 95e.

(FR) France Mar Industrial Production M/M: -0.9% v -0.6%e; Y/Y: -0.9% v -1.3%e.

(FR) France Mar Manufacturing Production M/M:+1.4% v -0.2%e; Y/Y: -0.3% v -2.8%e.

(FR) France Mar Central Govt. Balance: -€29.4B v -€24.2B prior.

(ES) Spain Mar House transactions Y/Y: -22.7% v -31.8% prior.

(CZ) Czech Apr CPI M/M: 0.0% v 0.1%e; Y/Y: 3.5% v 3.6%e.

(CZ) Czech Mar Industrial Output Y/Y: -0.7% v +1.5%e; Construction Output Y/Y: No est v -16.0% prior.

(CZ) Czech Apr Unemployment Rate: 8.4% v 8.5%e.

(DK) Denmark Apr CPI M/M: 0.0% v 0.3%e; Y/Y: 2.3% v 2.6%e.

(DK) Denmark Apr CPI EU Harmonized M/M: 0.0% v 0.3%e; Y/Y: 2.3% v 2.6%e.

(NL) Netherlands Apr CPI M/M: 0.4% v 1.1% prior; Y/Y:2.4% v 2.3%e.

(NL) Netherlands Apr CPI EU Harmonized M/M: 0.5% v 1.4% prior; Y/Y: 2.8% v 2.7%e.

(NL) Netherlands Mar Industrial Production M/M: 1.6% v 0.1%e; Y/Y: +0.7% v -2.7 % prior; Industrial Sales Y/Y: 0.8 v 1.3% prior.

(SE) Sweden Mar Industrial Production M/M: 0.4% v 3.0%e; Y/Y: -6.5% v -2.6%e.

(SE) Sweden Mar Industrial Orders M/M: +2.0% v -5.5% prior; Y/Y: -6.4% v -8.3% prior.

(SE) Sweden Apr CPI Headline Rate M/M: 0.2% v 0.3%e; Y/Y: 1.3% v 1.4%e; CPI level: 315.49 v 315.7e.

(SE) Sweden Apr CPI Underlying (CPIF) M/M: 0.3% v 0.3%e; Y/Y: 1.0% v 1.0%e.

(NO) Norway Apr CPI M/M:0.1% v +0.3%e; Y/Y: 0.3% v 0.5%e.

(NO) Norway Apr CPI Underlying M/M: 0.1% v 0.3%e; Y/Y: 0.7% v 1.0%e.

(NO) Norway Apr Producer Prices incl.Oil M/M: -1.6% v 1.5% prior; Y/Y: 2.5% v 6.6% prior.

(IT) Italy Mar Industrial Production SA M/M: 0.5% v 0.1%e; Y/Y: -5.9% v -3.3% prior; Industrial Production WDAY/Y: -5.8% v -6.2%e.

(UK) Mar Industrial Production M/M: -0.3% v -0.3%e; Y/Y:-2.6% v -2.6%e.

(UK) Mar Manufacturing Production M/M: 0.9% v 0.5%e; Y/Y: -0.9% v -1.3%e.

(GR) Greece Mar Industrial Production Y/Y: -8.5% v -8.3% prior.

(GR) Greece Feb Unemployment Rate: 21.7% v 21.3% prior.

(ZA) South Africa Mar Gold Production Y/Y: -11.6% v -11.5% prior; Mining Production Y/Y: -9.8% v -14.5% prior.

Fixed Income:

(HU) Hungary Debt Agency (AKK) sold HUF50B in 12-Month Bills; avg yield 7.38% v 7.37% prior; Bid-to-cover:2.12 x v 2.06x prior.

(HU) Hungary Debt Agency (AKK) sold HUF 7.5B in 2015 floating rate bonds at 95.09; bid-to-cover: 2.55x v 2.05x previous.

Notes/Observations

Australia April employment data exceeds expectation with unemployment rate at 12-month low.

China April trade surplus almost 2x higher than expected with imports and exports both weaker.

BoE expected to refrain from any new QE program for the time being.

South Korea Central Bank leaves interest rates unchanged (as expected).

Greece Pasok Party Now Has Mandate To Form A New Government; New Elections Remain The Likely Scenario

Equities

FTSE 100 -0.50% at 5503, DAX -0.10% at 6471, CAC-40 -1% at 3088, IBEX-35 +1%, FTSE MIB -0.20%, SMI -0.60% at 5902

After the opening the session higher, European equity markets have pared gains. Spain's IBEX-35, which was the worst performer on yesterday's session, has outperformed, while the CAC-40 in France has underperformed. European banks are mostly higher as of the time of writing, following the sharp losses seen on the prior session. Various European banks have reported better than expected results for the session, including Danske Bank [DANSKE.DK] and KBC [KBC.BE]. Upcoming events risks for later today include the BoE's policy meeting and earnings out of large Italian bank Unicredit [UCG.IT]

In UK individual movers, shares of builder Barratt Developments [BDEV.UK] and retailer SuperGroup are trading higher, as both companies issued their financial reports. Experian [EXPN.UK] is lower by approx. 3.5%, after reporting weaker than expected FY sales. BT [BT.UK] is lower by over 1%, after reporting its FY results. Reckitt Benckiser [RB.UK] is lower by approx. 4%, as the company's largest shareholder placed a stake in the firm.

Deutsche Telekom [DTE.DE] has traded higher by over 2%, after reporting better than expected Q1 adj EBITDA and revenues. Additionally, Solar World [SWV.DE] has gained over 8%, following the release of its Q1 figures. Shares of RWE [RWE.DE] and Prosieben [PSM.DE] are both trading lower following their respective Q1 earnings reports. Belgium listed bank KBC [KBC.BE] has gained over 8%, as the company's Q1 underlying profits beat analyst expectations.

In France, shares of JC Decaux [DEC.FR] are lower by over 7%, following the company's Q1 sales report, while Natixis [KN.FR] is showing slight declines after issuing its Q1 figures. In the technology space, Cap Gemini [CAP.FR] is trading higher by over 0.50%, as the company reported better than expected Q1 sales.

Telecom Italia Media [TME.IT] is higher by over 12% following the release of its Q1 sales report. Spanish names Repsol [REP.ES] and Iberdrola [IBE.ES] are both trading higher after issuing their Q1 financial results. Large steelmaker, ArcelorMittal [MT.NL] has traded higher by more than 2.5%, as the company reported a higher than expected Q1 EBITDA figure. Dutch banking name Aegon [AGN.NL] is gaining over 6% on its Q1 earnings release.

In Denmark, shipping name Torm [TORM.DK[ has lost over 30%on the session, as the company reported an unexpected EBITDA loss in Q1. Torm also said that its debt deal talks were "proceeding as planned" and that it could not provide a forecast until it reached a financing agreement. Danske Bank [DANSKE.DK] has gained over 4%, after reporting better than expected Q1 results.

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