Spain Auction Results Seen As 'Soggy' UK Retail Sales Below Expectations

(RU) Russia Gold and Forex Reserve w/e July 13th: $504.3B v $511.4B prior

(CH) Swiss June Trade Balance (CHF): 2.3B v 2.5B prior; Real Exports M/M: -2.6% v -1.5%e; Real Imports M/M: -3.1% v +0.9% prior

(HU) Hungary May Average Gross Wages Y/Y :6.4% v 3.2%e

(NL) Netherlands July Consumer Confidence: -32 v -40 prior

(NL) Netherlands June Unemployment Rate: 6.3 v 6.2% prior

(EU) Eurozone May Current Account nsa: -€2.5B v €1.3B prior; Eurozone Current Account SA: €10.9B v €5.5B prior

(IT) Italy May Industrial Orders M/M: 1.7% v 1.7%e; Y/Y: -9.4% v -12.3% prior

(IT) Italy May Industrial Sales M/M: -0.5% v -0.6% prior; Y/Y: -2.7% v -4.1% prior

(HK) Hong Kong June Unemployment Rate: 3.2% v 3.3%e

(UK) June Retail Sales Ex Auto Fuel M/M: 0.3% v 0.4%e; Y/Y: 2.2% v 2.6%e

(UK) June Retail Sales w/Auto Fuel M/M: 0.1% v 0.6%e; Y/Y: 1.6% v 2.3%e

(PL) July Central/Eastern European ZEW Indicator: -7.6 v 0.0 (flat)prior

Fixed income
(ES) Spain Debt Agency (Tesoro) sold total €2.98B vs. €2.0-3.0B indicated in 2014, 2017 and 2019 Bonds

Sold €1.36B in 3.30% Oct 2014 Bono bond; Avg yield: 5.204% v 4.335% prior; Bid-to-cover: 1.90x v 4.26x prior; Max Yield 5.302% v 4.483% prior; tail 9.8bps v 14.8bps

Sold €1.07B in 5.50% July 2017 Bono bond; Avg Yield 6.459% v 6.072%; Bid-to-cover: 2.06x v 3.44x; Max Yield 6.543% v 6.195% prior, tail 8.4bps v 12.3bps

Sold €548M in 4.3% 2019 Bono bond; Avg Yield 6.701% v 4.832%; Bid-to-cover: 2.94x v 3.27x; Max Yield 6.798% v 4.899% prior; Tail 9.7bps

(FR) France Debt Agency (AFT) sold total €8.96B vs. €8.0-9.0B indicated range in 2015, 2016 and 2017 BTANs

Sold €1.81B in 2.50% Jan 2015 BTAN Note; Avg Yield 0.12% v 1.09%; Bid-to-cover: 3.02x v 3.30x prior

Sold €2.64B in 2.50% July 2016 BTAN note; Avg Yield 0.53% v 1.89%; Bid-to-cover: 2.14x v 2.10x prior

Sold €4.50B in new 1.00% July 2017 BTAN note; Avg Yield 0.86% v 1.43%; Bid-to-cover: 1.88x v 2.17x prior

(HU) Hungary Debt Agency (AKK) sold HUF55B vs. HUF45B indicated 12-Month Bills; Avg Yield 6.93% v 7.26% prior; Bid-to-cover: 1.85x v 1.94x prior

(UK) DMO sold £1.75B in 3.75% 2052 Gilts; Avg Yield 3.0446% v 3.446% prior; Bid-to-cover: 1.67x v 2.06x prior

Notes/Observations
Renewed rumors circulate that China PBoC might again cut the Reserve Requirement Ratio (RRR) are circulating.

German Bundesbank said to expand holdings of AUD assets by end of September.

EU funds not for Spain bank recapitalization might be used to buy public debt.

Corn, soybean futures trading at record highs as US drought continues.

UK June retail sales come in below expectations.

Spain auction results described as soggy with higher yields and lower bid-to-cover rations.

France funding costs plummet at BTAN auction.

Equities
Indices: FTSE 100 +0.10% at 5693, DAX +0.40% at 6712, CAC-40 +0.10% at 3240, IBEX-35 +0.30% at 6611, FTSE MIB -0.60% at 13,505, SMI +0.60% at 6302, S&P 500 Futures +0.20% at 1370

After the opening the session slightly higher, European bourses have pared gains, amid debt auction results out of Spain. European financials are currently trading mostly lower, with the exception of UK banks. Mining shares are mixed, despite the gains being seen for commodity prices. Looking ahead, companies due to report earnings during the US morning include Nokia (NOK), Baxter International (BAX), Freeport McMoran (FCX), Morgan Stanley (MS) and Verizon (VZ). In macroeconomic news, Germany's lower house Bundestag is due to vote on Spain's bank aid later today.

Large UK home improvement retailer, Kingfisher [KGF.UK] has declined by ~1%, following the release of Q2 sales. JJB Sports [JJB.UK] has lost over 25%, as the company issued a profit warning. In other UK movers, Halfords [HFD.UK] and Mothercare [MTC.UK] have both gained over 7%, following the release of their respective quarterly sales reports. Energy producer Afren [AFR.UK] is higher by over 6%, after disclosing an oil find. In France, luxury goods providers Hermes [RMS.FR] and Remy Cointreau [RCO.FR] are both trading higher following the release of better than expected sales reports. Additionally, both companies said that their Chinese businesses were not slowing. Shares of French power generation firm Alstom [ALO.FR] have advanced by over 3%, as the company reported inline Q1 sales.

In Sweden, large appliance maker Electrolux [ELUXB.SE] has gained over 5%, as the company reported better than expected Q2 results. The company stated that its North American, Latin American and Asian businesses helped to offset the weakness seen in Europe. Dutch chemical maker Akzo Nobel [AKZA.NL] is higher by more than 2.5%, following the release of Q2 earnings. In the banking sector, Credit Agricole [ACA.FR], SocGen [GLE.FR] and Deutsche Bank [DBK.DE] have underperformed their peers, amid concerns related to the global Libor probes. Novartis [NOVN.CH] has gained ~0.50%, as the company reported better than expected quarterly earnings and reaffirmed its FY forecast. Also, in the drug space, Actelion [ATLN.CH] has gained over 2%, following the release of its H1 sales report. Finland-based energy producer Fortum [FUM1V.FI] is lower by ~7%, as the company reported weaker than expected Q2 results.