Economic Data
(RU) Russia July Trade Balance: $11.1B v $13.5Be; Exports: $40.6B v $42.0Be; Imports: $29.6B v $29.1Be
(FR) France Q2 Final Nonfarm Payrolls: -0.1% v -0.1%e
(DE) Germany August Wholesales Prices M/M: 1.1 v 0.3% prior; Y/Y: 3.1 v 2.0% prior
(JP) Japan August Preliminary Machine Tool Orders Y/Y: -2.6% v -6.7% prior
(ES) Spain July House transactions Y/Y: -2.5% v -11.4% prior
(HU) Hungary August Consumer Prices M/M: -0.1% v +0.2%e; Y/Y: 6.0% v 6.0%e
(TR) Turkey July Current Account: -$3.9B v -$4.0Be
(NL) Netherlands July Trade Balance: €2.8B v €4.2B prior
(CN) China August M2 Money Supply Y/Y: 13.5% v 14.0%e; M1 Money Supply Y/Y: 4.5% v 4.7%e; M0 Money Supply Y/Y: 9.7% v 9.7%e
(CZ) Czech July Current Account (CZK): -11.5B v -8.7Be
(ZA) South Africa Q2 Current Account Balance (ZAR):-200.0B v -143.2B; Current Account to GDP: -6.4% v -4.8%e
(UK) July Visible Trade Balance: -£7.2B v -£9.0Be; Total Trade Balance: -£1.5B v -£3.2Be; Trade Balance Non EU: -£2.9B v -£-4.5Be
(PH) Philippines July M3 Money Supply Y/Y: 8.7% v 7.1% prior
(PH) Philippines July Bank Lending Net of RRPs Y/Y: 16.0% v 14.9% prior
Fixed Income
(NL) Netherlands Debt Agency (DSTA) sold €2.0B vs. €1.5-2.5B indicated range in 2.25% July 2022 DSL Bonds; Avg Yield 1.846% v 1.995% prior
(EU) ECB allotted €130.3B in 7-Day Main Refinancing Tender at fixed 0.75% vs. €129Be
(EU) ECB allotted €13.8B in 1-Month MRO Tender at fixed 0.75% vs. 25Be
(CH) Switzerland sold CHF931.1M 3-Month Bills; Yield -0.300% v -0.399% prior
(ZA) South Africa sold total ZAR2,1B vs. ZAR2.1B indicated in 2023, 2041 and 2048 Bonds
(UK) DMO sold £1.25B in 0.75% I/L Mar 2034 Gilts; Real Yield 0.126% v 0.049% prior; Bid-to-cover: 1.55x v x 1.93x prior
(HU) Hungary Debt Agency (AKK) sold HUF45B vs. HUF45B target in 3-Month Bills; Average Yield 6.71% v 6.68% prior; Bid-to-cover: 1.44x v 1.95x prior
Notes/Observations
- German High Court ruled that it would proceed and render a decision on the ESM rescue fund on Wednesday, September 12th despite a last minute protest by CSU member Gauweiler
- IMF Zhu stated that the world should believe in eurozone recovery and expressed support ECB bond buying plan
- German Finance Ministry: ECB can help economy in the short term
- China August new CNY loans stronger than expected
- UK Visible Trade Balance narrowest since February 2011; Non-EU goods exports hit record high in July
- Germany High Court decision on ESM and FOMC decisions loom for risk appetite sentiment
Indices: FTSE 100 -0.40% at 5772, DAX -0.10% at 7203, CAC-40 3492, IBEX-35 -1% at 7776, FTSE MIB -1.2% at 15,903, SMI -0.50% at 6476, S&P 500 Futures +0.20% at 1429.50
European equity markets are trading lower led by declines in the Spanish IBEX-35 and Italian FTSE MIB, as markets await Wednesday's commentary out of the German Constitutional Court and Thursday's US Fed FOMC decision. European banks are broadly lower, led by weakness in shares of Commerzbank [CBK.DE], Credit Agricole [ACA.FR], SocGen [GLE.FR], Intesa [ISP.IT] and Unicredit [UCG.IT].
Most resource related firms are trading lower, tracking the declines in Chinese equities. Amid the recent stabilization in the European corporate bond markets, various companies have announced plans to issue debt, including Anglo American [AAL.UK], Banca Monte Paschi [BMPS.IT], Banco Sabadell [SAB.ES] and Total [FP.FR].
In London, luxury retailer Burberry [BRBY.UK] has traded lower by over 18% after issuing a FY profit warning, as the company saw slowing growth in Q2. Shares of retailer SuperGroup [SGP.UK] are higher by more than 4%, following the release of Q1 results. In Spain, Enagas [ENG.ES] has declined by over 6%, after investors placed a 5% stake in the company.