- US stocks retreated for the second day in a row, while Asian indices are up.
- Ireland successfully raised EUR 2.5bn in a syndicated tap yesterday.
- Focus today on German industrial production, Italian Q3 government deficit and the meeting between Ireland's Enda Kenny and EU's Herman van Rompuy.
It has been another session without market-moving events. US stocks retreated for the second day in a row. European stock indices ended mixed despite a good start yesterday and decent euro area data releases with better-than-expected retail sales and survey data from the European Commission. Unconfirmed news swept Twitter of an imminent French downgrade, which weighed on risk sentiment despite the story being "erroneous" according to French officials.
The negative sentiment from the final hours of the European trade carried over to US equities. The S&P 500 ended the session down by 0.3%. After the US close the earnings season was unofficially kicked off with Alcoa reporting. The Q4 revenue of the world’s largest aluminium producer was slightly better than expected and Alcoa estimated in its guidance a 7% increase in global demand for aluminium in 2013.
Asian stock markets are trading in positive territory this morning. Nikkei is up by 0.9% and Hang Seng is up by 0.4%. China has a couple of interesting releases on the agenda in the remainder of this week such as money growth, trade data and inflation numbers, which could affect market sentiment.The S&P future has increased slightly in Asian trade this morning.
US Treasurys were supported by the slightly negative risk sentiment overnight. Yields decreased slightly across the curve with the 10-year segment decreasing 3bp to 1.87%. The trade was characterised by a very narrow range. In FX markets EUR/USD has traded sideways overnight and is this morning trading around 130.8.
Ireland yesterday successfully raised EUR 2.5bn through a syndicated tap of its Treasury Bond that matures in October 2017 at a yield of 3.32%. Ireland is step by step regaining full market access and the issuance shows that the financial markets continue to believe in the Irish recovery.
There was a strong and broad-based demand with total bids amounting to EUR 7bn. 13% was taken by domestic investors and 87% by foreign investors. The auction accounts for 25% of Ireland’s total funding target of EUR 10bn in 2013.
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