SNB Leaves Both Interest Rates And EUR/CHF Floor Unchanged

FOMC replaced its 2015 low rate pledge with monetary policy thresholds linked to labor data; to buy $45B/month of Treasurys when operation twist expires

EU said to reach a deal on single Bank supervisor; Eurogroup allow ECB to supervise banks in Eurozone; first step towards a banking union

Greek aid of €49.1B aid to be disbursed in 4 tranches through March 2013

Bank of Korea leaves interest rates steady as expected

JPY currency extended decline in the wake of FOMC with eye on upcoming Japan elections

Italy and Spain have little problems with debt issuance today; - Small size in Spain auction aids b-d-to-cover ratios

SNB leaves both interest rates and EUR/CHF floor unchanged (as expected)

Precious metal prices not responding to Fed's QE move; USD and JPY do

Economic Data
(SE) Sweden Nov PES Unemployment Rate: 4.6% v 4.6%e

(FI) Finland Oct Final Retail Sales Volume Y/Y: -0.1% v +0.7% prior

(ES) Spain Nov Consumer Price Index M/M: -0.1% v -0.1%e v; Y/Y: 2.9% v 2.9%e

(ES) Spain Nov CPI EU Harmonized M/M: -0.2% v -0.3%e; Y/Y: 3.0% v 3.0%e

(ES) Spain Nov CPI Core M/M: 0.2% v 0.2%e; Y/Y: 2.2% v 2.2%e

(PH) Philippines Central leaves Overnight Borrowing Rate unchanged at 3.50%, as expected

(EU) ECB: €1.4B borrowed in overnight loan facility vs. €507M prior; €195.1B parked in deposit facility vs. €236.7B prior

(CH) Swiss Nov Producer & Import Prices M/M: 0.0% v -0.3%e; Y/Y: 1.2% v 1.0%e

(CH) Swiss National Bank (SNB) leaves 3-Month Libor Target Rate unchanged at 0.00%; Maintain the EUR/CHF floor at 1.2000

(HK) Hong Kong Q3 Industrial Production Y/Y: -0.1% v -2.9% prior

(HK) Hong Kong Q3 Producer Price Y/Y: -1.5% v -0.6% prior

(SE) Sweden Nov Unemployment Rate: 7.5% v 7.1%e; Unemployment Rate Seasonally Adj: 8.1% v 7.8%e

(NL) Netherlands Oct Retail Sales Y/Y: -0.1% v -0.1% prior

(SE) Sweden Oct Average House Prices (SEK): 1.957M v 1.95M prior

(SE) Sweden Nov CPI Headline Rate M/M: -0.2% v -0.1%e; Y/Y: -0.1% v 0.0%e; CPI Level: 313.82 v 314.13e

(SE) Sweden Nov CPI Underlying Rate (CPIF) M/M:-0.2 % v -0.1%; Y/Y: 0.8% v 0.9%e

(PH) Philippines Oct M3 Money Supply Y/Y: 8.6 v 7.5% prior

(PH) Philippines Oct Bank Lending Y/Y: 14.2% v 14.2% prior; Bank Lending Net of RRPs Y/Y: 15.8 v 13.5% prior

(CZ) Czech Oct Current Account Monthly (CZK): -16.1BB v +2.0Be

(IT) Italy Nov Final CPI (NIC incl. tobacco) M/M: -0.2% v -0.2%e; Y/Y: 2.5% v 2.5%e

(IT) Italy Nov Final CPI EU Harmonized M/M: -0.3% v -0.3%e; Y/Y: 2.6% v 2.6%e

(ZA) South Africa Nov PPI M/M: 0.3% v 0.4%e; Y/Y: 5.2% v 5.5%e

(GR) Greece Q3 Unemployment Rate: 24.8% v 23.6% prior

(PL) Central/Eastern European Dec ZEW Indicator: +6.1 v -3.4 prior

Fixed Income
(ES) Spain Debt Agency (Tesoro) sold €2.02B vs. €1.0-2.0B indicated range in 2015, 2017 and 2040 Bonds

Sold €681M in 3.75% Oct 2015 Bono Bond; Avg Yield 3.358% v 3.417% prior; Bid-to-cover: 4.80x v 1.99x prior; Maximum Yield 3.389% v 3.471% prior; Tail bps v 8.1bps prior

Sold €803M in 5.50% July 2017 Bono bonds; Avg Yield 4.20% v 4.477% prior; Bid-to-cover: 3.13x v 2.61x prior; Max Yield 4.239% v 4.519% prior, tail bps v bps prior

Sold €540M in 4.9% 2040 Bono bond; Avg yield 5.893% v 4.85% prior, bid-to-cover 2.09x v 1.7x prior, Max Yield 5.928% v 4.749% prior (last tapped in Mar 2009)

(IT) Italy Debt Agency (Tesoro) sold €4.22B vs. €3.0-4.25B indicated range in 2015 and 2026 BTPs

Sold €3.495B 2.75% Dec 2015 BTP; Avg Yield 2.50% v 2.64% prior; Bid-to-cover: 1.36x v 1.50x prior

Sold €729M 4.50% Mar 2026 BTP; Avg Yield 4.75% v 5.32% prior; Bid-to-cover: 1.98x v 1.50x prior

(HU) Hungary Debt Agency (AKK) sells total HUF52B vs. HUF43B indicated in 2015, 2017 and 2028 bonds

(UK) DMO sold £1.1B in 0.125% I/L 2024 Gilts; Real Yield -0.583% v -0.441% prior; Bid-to-cover: 2.37x v 2.56x prior

Equities
Indices: FTSE 100 -0.25% at 5,930, DAX -0.60% at 7,567, CAC-40 -0.30% at 3,635, IBEX-35 flat at 7,985, FTSE MIB +0.10% at 15,776, SMI -0.30% at 6,938, S&P 500 Futures -0.25% at 1,418

Most equity indices are lower, following the mixed open, as traders assess the moves out of the US Fed. Germany's DAX has underperformed, after the index hit multi-month highs earlier in the week. Mixed trading has been seen in the European banking sector, as EU officials reached an agreement on banking supervision. Underperformers in the sector include Banco Popular, Commerzbank, Deutsche Bank, Natixis and UBS. Slight outperformance has been seen by Italian bank, as Italy sold bonds. Resource related firms are mostly lower, tracking the declines in commodity prices.

Movers
UK Movers [HMV -37% (concerns related to banking covenants), Centamin PLC and Capital Drilling lower by over 35% (drilling delays in Egypt), PV Crystalox Solar -12% (trading update, restructuring plan), Sports Direct -3.5% (H1 results), Wood Group -2.4% (trading update), AstraZeneca -2.3% (issued mixed data on FOSTAMATINIB), BG Group -1% (named new CEO);National Express +3% (trading update), African Barrick Gold +2% (renewed takeover speculation),Betfair +1% (H1 results)]

France movers [Cap Gemini -1.2%(named new CFO); TF1 +4.5% (continuing talks with Discovery Communications), Renault +1.7% (sold stake in Volvo), Danone +1% (cost cutting measures)]

Germany Movers [Wacker Chemie -3% (follows prior session's gains), RWE -2.5% (broker downgrade), ThyssenKrupp -2% (following recent gains, to be sued by Deutsche Bahn), E.ON -1% (broker downgrade), Automakers lower (tracking weakness in DAX, China vehicle prices down in Nov); Hochtief +1% (broker upgrade)]

Dutch movers [Wessanen -6% (delayed sale of US unit)]