Economic Data
(ID) Indonesia Central Bank leaves Reference Rate unchanged at 6.00%; as expected
(IN) India Nov Industrial Production Y/Y: 5.9% v 2.1%e
(JP) Japan Dec Preliminary Machine Tool Orders Y/Y: 17.4 v 15.8% prior
(RU) Russia Gold & Forex Reserve w/e Jan 6th: $498.0B v $503.0B prior
(FR) France Dec Consumer Price Index M/M: 0.4% v 0.2%e; Y/Y: 2.5% v 2.3%e; CPI Ex Tobacco Index: 123.51v 123.31e
(FR) France Dec CPI EU Harmonized M/M: 0.4% v 0.3%e; Y/Y: 2.7% v 2.5%e
(IN) India Primary Articles WPI w/e Dec 31st Y/Y: 0.5% v 0.1% prior; Food Articles WPI Y/Y: -2.9% v -3.4% prior
(DE) Germany Dec Final Consumer Price Index M/M: 0.7% v 0.7%e; Y/Y: 2.1% v 2.1%e
(DE) Germany Dec Final CPI EU Harmonized M/M: 0.7% v 0.8%e; Y/Y: 2.3% v 2.4%e
(FR) France Nov Current Account: -€2.3B v -€4.5B prior
(FR) France Nov Central Govt. Balance: -€97.2B v -€99.4B prior
(DK) Denmark Nov Industrial Production M/M: 0.2% v 0.1%; Industrial Orders M/M: -2.5% v -18.5% prior
(NL) Netherlands Nov Retail Sales Y/Y: +1.3% v -1.6% prior
(SE) Sweden Dec CPI Headline Rate M/M: 0.2% v 0.2%e; Y/Y: 2.3% v 2.3%e; CPI Level: 314.78 v 314.32e
(SE) Sweden Dec CPI Underlying (CPIF) M/M: 0.0% v 0.0%e; Y/Y: 0.5% v 0.6%e
(IT) Italy Nov Industrial Production M/M: +0.3% v -0.2%e; Y/Y: -4.1 v -4.0% prior; Industrial Production wda Y/Y: -4.1% v -2.9%e
(DE) Germany Nov Machine Orders Y/Y: -12.0% v +1.0% prior ; YTD: -4.0%- VDMA
(UK) Nov Industrial Production M/M: -0.6% v -0.1%e; Y/Y: -3.1% v -2.2%e
(UK) Nov Manufacturing Production M/M: -0.2% v - 0.2%e; Y/Y:-0.6% v -0.5%e; (weakest YoY reading since Dec 2009)
(EU) Euro Zone Nov Industrial Production M/M: -0.1% v -0.3%e v -0.1% prior; Y/Y: 0.3%e v 1.3% prior
(GR) Greece Oct Unemployment Rate: 18.2% v 17.5% prior
Fixed Income:
(ES) Spain Debt Agency (Tesoro) sold total 9.97B€ v €4.0-5.0B indicated range in 2015 and 2016 bonds (total of three tranches)
Sold €4.27B in new 4% July 2015 Bono ; Avg Yield 3.384% v 3.589% prior; Bid-to-cover: 1.80x v 2.7x prior; Maximum Yield 3.576% v 3.633% prior
Sold €2.50B in 3.25% April 2016 Bono; Avg Yield 3.784% v 4.291% prior; Bid-to-cover: 2.21x v 2.9 prior; Max Yield 3.883% v 4.891 prior
Sold €3.21B in 4.25% Oct 2016 Bono; Avg Yield 3.912% v 5.276% prior; Bid-to-cover: 1.71x v 1.6x prior; max yield: 3.949% v 5.280%- (GR) Greece Oct Unemployment Rate: % v 17.5% prior
(IT) Italy Debt Agency (Tesoro) sold €12.0B vs. €12.0B indicated range for 5-month and 12-month Bills;
Sold €3.5B v €3.5Be in 5-Month Bills; Avg Yield 1.644% v 3.251% prior; Bid-to-cover: 1.85x v 1.69x prior
Sold €8.5B v €8.5Be in 12-Month Bills; Avg Yield 2.735% v 5.952% prior; Bid-to-cover: 1.47x v 1.92x prior; lowest yield since June 2011
(HU) Hungary Debt Agency (AKK) sold total HUF44B vs. HUF33B Target in 2014, 2017 and 2022 Bonds
Sold HUF20B in Aug 2014 Bonds; Yield 9.41%; bid-to-cover: 2.64x
Sold HUF12B in Nov 2017 Bonds, Yield 9.41% vs. 9.63% prior; bid-to-cover: 2.07x
Sold HUF12B in Jun 2022 Bonds, Yield 9.38% vs. 9.70% prior; bid-to-cover: 2.74x
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Notes/Observations
China Dec CPI hits 15-month low
Spain sells almost double the intended amount in bonds
No changes expected at BOE and ECB rate decision today
Equities:
FTSE 100 +0.30% at 5689, DAX +1.4% at 6239, CAC-40 +0.90% at 3234, IBEX-35 +1.4% at 8543, FTSE MIB +2.7% at 15,279, SMI +0.40% at 6034
European shares rallied after Spain sold twice the amount anticipated during its debt auction. Italy's debt auction was also a success prompting optimism that there is still appetite for peripheral debt. The results coupled with Fed's confirmation that US's economic expansion improved in the past month, prompted shares higher. Investors are also expecting two major rate decisions from ECB and BoE which are both expected to leave rates unchanged at, respectively, 1.0% and 0.5%.
In individual news, embattled Petroplus [PPHN.SZ] soared to over 45% after announcing a temporary agreement with lenders regarding a revolving credit facility. Meanwhile, UK's retailer Tesco [TSCO.UK] declined over 10.5% despite increasing like-for-like sales, which were nonetheless below board's expectations. Furthermore, company expected profit to be at the low end of its range.