• European stock market, economy and companies update (September 22, 2015)

    - Dollar gains ground as the US Fed's mixed signals (4th Fed member talked about a possible hike in 2015) create further confusion.
    - Car makers under pressure as a wider probe of the industry in the wake of Volkswagen AG admitting to rig emission tests in the U.S
    - FTSE 100, DAX and CAC all down more than 2%

    Indices [Stoxx50 -2.9%, FTSE -2.40% at , DAX -2.60% at 9,730, CAC-40 -2.50% at 4,456, IBEX-35 -3.0% at 9,575, FTSE MIB -2.3% at 21,200, SMI -2.4% at 8,550, S&P 500 Futures -1.5% at 1,934]

    - Market Focal Points/Key Themes: European stocks slipped in early trading, following general risk-off sentiment; safe-haven assets supported; oil dropped, impacting energy stocks; commodities broadly down adding weakness to materials stocks; automakers affected by potential fallout from Volkswagen emissions scandal (Peugeot UG.FR -6.5%, Renault RNO.FR -4.9%, Fiat Chrysler FCA.IT -3.8%, Daimler DAI.DE -3.4%, BMW BMW.DE -4.3%)

    - Consumer discretionary [Mitchels & Butlers MA.UK -2.7% (CE replacement)]
    - Consumer staples [Suedzucker SZU.DE +11% (raises guidance)]
    - Industrials [Anglo American AAL.UK -6.7% (broker move), Outokumpu OUT1V.FI -15.5% (profit warning), Volkswagen VOW3.DE -5.8 (emission scandal), Meggitt MGGT.UK -0.7% (acquisition)]
    - Materials [Ferrexpo FXPO.UK +8.4% (broker move)]

    - (UK) UK Chancellor Osborne: Exit from very loose monetary policy will come
    - (TR) Turkey FinMin Simsek: Conditions not in favor of EM economies
    - (ES) Spain PM Rajoy: Only threat to Spanish GDP is politcal instability

    - FX markets had a mixed session against the dollar in the morning session despite little macroeconomic data out.
    - The EUR/USD was trading around the 1.12 handle overnight, with the Euro coming off on the early morning session before finding a bid to around the 1.12 handle.
    - The GBP/USD traded above the 200 day moving average as a support level for most of the night before cable came off and is now trading below that 200 day moving average. Cable remains range-bound between the lows of 1.5457 to highs of 1.5512 in the morning session.
    - The USD/JPY was more volatile on the session trading higher after the Bank of Japan left monetary policy unchanged last week, but with risks remaining clear.

    Fixed Income
    - Bund futures *trade at 155.35, up 50 ticks after dovish comments from ECB's Praet. A break of today's low will target 154.66, with analysts seeing a break to target 154.26, followed by 153.74. A break would see an extension to potentially 152.36, followed by 151.84. To the upside analysts eye 155.51 initially, followed by 156.01 next. Continuation would see 156.49 then 156.83.
    Today we saw the Netherlands sell 2.8B in its 3 year DSL the equivalent of 6K Bund futures.
    - UK Gilt futures trades 118.18, up 30 ticks, in conjunction with the general risk off tone seen in the markets. Analysts still look for downside retracement to target 117.59 with 117.15 filling the gap. To the upside a break of 118.32 looks for continued strength to September highs at 118.63 followed by 119.35 contract highs the eventual target.
    - Monday's liquidity report showed Friday's excess liquidity fell to 480.0B, a drop of 15.5B from 495.5B prior. This was primarily due to AFs and MonPol portfolios falling to negative 66.4B. AFs are negative when the MonPol portfolios exceeds the liquidity absorbing effect of AFs. Use of the marginal lending facility fell to 53M from 63M.

    Looking Ahead
    All times listed for economic events are denominated in Eastern Standard Time (Add 4 hours for GMT equivalent)
    - 07:00 (TR) Turkey Central Bank (CBRT) Interest Rate Decision: Expected to leave Key Rates unchanged; Expected to leave Benchmark Repurchase Rate at 7.50%; Expected to leave Overnight Lending Rate at 10.75%; Expected to leave Overnight Borrowing Rate at 7.25%
    - 07:45 (US) Goldman Economist Chain Store Sales
    - 08:00 (HU) Hungary Central Bank (NBH) Interest Rate Decision: Expected to leave Base Rate unchanged at 1.35%
    - 08:00 (BR) Brazil Sept IBGE Inflation IPCA-15 (mid-month) M/M: 0.4%e v 0.4% prior; Y/Y: 9.6%e v 9.6% prior
    - 08:15 (US) Baltic Dry Bulk Index
    - 08:55 (US) Weekly Redbook Sales
    - 09:00 (US) July FHFA House Price Index M/M: 0.4%e v 0.2% prior
    - 09:00 (EU) Weekly ECB Forex Reserves
    - 08:55 (US) Weekly Redbook Sales
    - 09:00 (EU) Weekly ECB Forex Reserves: v prior
    - 10:00 (MX) Mexico Weekly International Reserves
    - 10:00 (EU) Euro Zone Sept Advance Consumer Confidence: -7.0e v -6.9 prior
    - 10:00 (US) Sept Richmond Fed Manufacturing Index: 2e v 0 (flat) prior
    - 15:00 (AR) Argentina Aug Trade Balance: No est v $0.2B prior
    - 16:30 (US) Weekly API Oil Inventories
    - 20:00 (AU) Australia July Conf. Board Leading Index M/M: No est v -0.2% prior
    - 21:00 (PH) Philippines July Trade Balance: -$0.1Be v -$0.6B prior; Imports Y/Y: -0.4%e v +22.6% prior
    - 21:45 (CN) China Sept Preliminary Caixin China PMI Manufacturing: 47.5e v 47.3 prior

    Economic data
    - 02:00 (CH) Swiss Aug Trade Balance (CHF): 2.87B v 2.8Be; Real Exports M/M: -2.4 v -1.7% prior; Real Imports M/M: -4.0 v -2.5% prior
    - 02:00 (FI) Finland Aug Unemployment Rate: 8.3% v 8.4% prior
    - 03:00 (ZA) South Africa July Leading Indicator: 92.8 v 94 prior
    - 03:00 (DK) Denmark Sept Consumer Confidence: 5.0e v 8.0e
    - 03:00 (DK) Denmark Aug Retail Sales M/M: 0.1% v 0.3%e prior; Y/Y: 0.2 v 3.4% prior
    - 04:30 (UK) Aug Public Finances (PSNCR): -0.22B v -3.0B prior; Public Sector Net Borrowing: +11.3Be v 8.8Be prior; Central Government NCR: -0.2 v -0.2B prior; PSNB ex Banking Groups: -12.1Be v -9.2B prior
    - 05:00 (IS) Iceland Aug Wage Index M/M: No est v 1.1% prior; Y/Y: No est v 7.9% prior

    Fixed Income Issuance:
    - (NL) Netherlands Debt Agency (DSTA) sells 2.8B 0.0% Apr 2018 DSL; Avg Yield: -0.156% v -0.032% prior
    - (ES) Spain Debt Agency (Tesoro) sells total 3.296B vs. 3-4B indicated range in 3-Month and 9-Month Bills

    Contributed by Trade The News
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