• European stock market, economy and companies update (September 30, 2015)

    Notes/Observations
    -Eurozone CPI turns negative, core remains unchanged
    -UK Q2 GDP y/y revised lower to 2.4% from 2.6%
    -UK Supermarkets gain on Sainsbury's outlook
    -Stocks rise on month end positioning


    SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM

    Equities
    Indices [Stoxx50 +2.2% at 3,104, FTSE +1.91% at 6,036, DAX +2.2% at 9,678, CAC-40 +2.2% at 4,455, IBEX-35 1.7% at 9,550, FTSE MIB 2.0% at 21,150, SMI 2.1% at 8,495, S&P 500 Futures +1.1%]

    - Market Focal Points/Key Themes: European stocks rise in early trading, with no major data out of China; automotive stocks rose as markets digest the Volkswagen scandal; prospects of slow growth said to already be priced in; consumer discretionary stocks lead gains; Glencore shares jumped after it said it had no solvency issues

    Sectors:
    - Consumer discretionary [Group Fnac FNAC.FR -2.2% (acquisition), Lufthansa LHA.DE +6.9% (broker move)]
    - Consumer staples [Sainsbury's SBRY.UK +13.6% (results)]
    - Energy [Scottish & Southern Power SSE.UK +3.4% (trading update)]
    - Industrials [Volkswagen VOW3.DE +2.4%]
    - Materials [Glencore GLEN.UK +11% (solvency commentary)]

    Speakers
    - (EU) ECB's Hansson (Estonia): Sees moderate inflation pressures in the Euro Area
    -Everything is possibleon continuing QE
    -Too early to discuss changes in QE
    - (PL) Poland Central Bank Chief Belka: Low interest rates have not led to too much indebtedness

    Currencies
    - FX markets against the dollar were rather mixed on the morning session with USD/JPY showing further continued strength from yesterday after a weak session last week; the EUR/USD relatively weak on session; with a highly volatile session of morning trade in cable following a lower than expected q/q GDP reading
    - The EUR/USD has had a generally weak early morning session, and trades in a range between 1.1260 at the morning highs to lows of 1.1212
    - The GBP/USD trades in a range between 1.5131 at the morning lows to highs of 1.5188 with an initial spike down after release of a weaker than expected q/q UK GDP reading being completely retraced, trading near the highs at time of writing
    - The USD/JPY rallies further after yesterdays bounce from its lows. USD/JPY hit a lows of 119.792 and has rallied to a highs in the late morning session of 120.217 showing continuing strength on the week

    Fixed Income:
    Bund futures trade at 155.98, down 19 ticks as Core CPI remained unchanged despite a negative headline reading. Analysts see downside support at 155.68 initially, followed by 155.42, then 155.13. To the upside, analysts eye a break of today's highs at 156.21 to target 156.68 initially, with a break challenging 156.83 the August high.

    UK Gilt futures trades 118.84 down 34 ticks as continued risk off sentiment takes hold despite Q2 Final y/y GDP came coming in weaker. Analysts look for downside at 118.77, followed by 118.49. To the upside, initial resistance lies at 119.35 high with a break seeing continued strength to 119.46 contract highs.

    Wednesday's liquidity report showed Tuesday's excess liquidity rose to €483.4B, a rise of €4.9B from €478.5B prior. This was primarily due to AFs and MonPol portfolios falling to negative €-69.3B. AFs are negative when the MonPol portfolios exceeds the liquidity absorbing effect of AFs. Use of the marginal lending facility rose to €54M from €68M.

    Political/In the Papers:
    None seen

    Looking Ahead
    All times listed for economic events are denominated in Eastern Standard Time (Add 4 hours for GMT equivalent)
    - 06:00 (PT) Portugal Aug Retail Sales M/M: No est v 1.2% prior; Y/Y: No est v 1.6% prior
    - 06:00 (PT) Portugal Aug Industrial Production M/M: No est v -0.1% prior; Y/Y: No est v 1.4% prior
    - 06:00 (MY) Malaysia Aug M3 Money Supply Y/Y: No est v 3.9% prior
    - 06:00 (IT) Italy Aug PPI M/M: No est v % prior; Y/Y: No est v % prior
    - 06:30 (IN) India Aug Fiscal Deficit (INR): No est v 9.8B prior
    - 06:45 (US) Daily Libor Fixing
    - 07:00 (US) MBA Mortgage Applications w/e Sept 25th: No est v % prior
    - 07:00 (RU) Russia to sell OFZ Bonds
    - 08:00 (PL) Poland Sept Preliminary CPI M/M: No est v -0.4% prior; Y/Y: No est v 0.6% prior; CPI Expectations: 0.2%e v 0.2% prior
    - 08:00 (ZA) South Africa Aug Trade Balance (ZAR): No est v -0.4B prior
    - 08:00 (ZA) South Africa Aug Budget Balance (ZAR): No est v -71.8B prior
    - 08:00 (CL) Chile Aug Unemployment Rate: No est v 6.6% prior
    - 08:00 (CL) Chile Aug Manufacturing Production Y/Y: No est v 0.7% prior; Industrial Production Y/Y: No est v % prior
    - 08:00 (CL) Chile Aug Retail Sales Y/Y: No est v 2.9% prior
    - 08:00 (CL) Chile Aug Total Copper Production: No est v 455.1K tons prior
    - 08:15 (US) Sept ADP Employment Change: No est v +190K prior
    - 08:15 (US) Baltic Dry Bulk Index
    - 08:30 (CA) Canada July GDP M/M: No est v 0.5% prior; Y/Y: No est v 0.6% prior
    - 09:00 (US) Sept ISM Milwaukee: no est v 47.7 prior
    - 09:30 (BR) Brazil Aug Primary Budget Balance (BRL): No est v -10.0B prior; Nominal Budget Balance (BRL): No est v -72.8B prior; Net Debt to GDP Ratio: No est v 34.2% prior
    - 09:45 (US) Sept Chicago Purchasing Manager: No est v 54.4 prior
    - 10:00 (MX) Mexico Aug Net Outstanding Loans (MXN): No est v 2.859T prior
    - 10:30 (US) Weekly DOE Crude Oil Inventories
    - 11:00 (CO) Colombia Aug Urban Unemployment Rate: No est v 9.0% prior; National Unemployment Rate: No est v 8.8% prior
    - 11:30 (BR) Brazil Weekly Currency Flows
    - 12:00 (US) USDA Quarterly Report
    - 12:00 (CA) Canada to sell 5-Year Bonds
    - 12:00 (DE) German Finance Ministry's Spahn speaks at Public Bank Lobby
    - 15:00 (AR) Argentina Aug Construction Activity M/M: No est v 0.2% prior; Y/Y: No est v 13.3% prior
    - 15:00 (US) Fed Chair Yellen with member Bullard speak on Community Banking in St. Louis
    - 19:00 (KR) South Korea Aug Industrial Production M/M: No est v -0.5% prior; Y/Y: No est v 3.3% prior

    - 19:50 (JP) Japan Q3 Tankan Large Non-Manufacturer Index: 2e v 23 prior; Large Non-Manufacturer Outlook Survey: 21e v 21 prior
    - 20:00 (KR) South Korea Sept Trade Balance: No est v $4.4B prior; Exports Y/Y: No est v -14.7% prior; Imports Y/Y: No est v -18.3% prior
    - 20:00 (US) Fed's Brainard speaks on Community Banking in St. Louis
    - 21:00 (CN) China Sept Manufacturing PMI (official): No est v 49.7 prior; Non-manufacturing (Services) PMI: No est v 53.4 prior
    - 21:35 (JP) Japan Sept Final PMI Manufacturing: No est v ## prelim
    - 21:40 (KR) South Korea PMI Manufacturing: No est v 47.9 prior
    - 21:45 (CN) China Sept Final Caixin PMI Manufacturing: No est v ## prelim; PMI Composite: No est v 48.8 prior; PMI Services: No est v 51.5 prior
    - 21:50 (TW) Taiwan Sept PMI Manufacturing: No est v 46.1 prior
    - 22:00 (VN) Vietnam Sept PMI Manufacturing: No est v 51.3 prior
    - 22:15 (MY) Malaysia Sept PMI Manufacturing: No est v 47.2 prior
    - 23:00 (ID) Indonesia Sept PMI Manufacturing: No est v 48.4 prior
    - 23:30 (TH) Thailand Sept Consumer Confidence: No est v 72.3 prior; Economic Confidence: No est v 61.5 prior
    - 23:45 (JP) Japan to sell 10-Year JGB Bonds
    - 23:45 (JP) Japan to sell 10-Year JGB Bonds


    Economic data
    (DE) GERMANY AUGUST RETAIL SALES M/M -0.4% V 0.2%E; Y/Y: 2.5% V 3.1%E
    (UK) SEPT NATIONWIDE HOUSING PRICES M/M: 0.5% V 0.4%E; Y/Y: 3.8% V 3.8%E
    (FR) FRANCE AUG PPI M/M: -0.9% V -0.1% PRIOR; Y/Y: -2.1% V -1.6% PRIOR
    (FR) France Aug Consumer Spending M/M: 0.0% v 0.1%e
    (CH) Swiss Sept KOF Leading Indicator: 100.4 v 100.9e
    (CZ) CZECH Q2 FINAL GDP Q/Q: 1.1% V 0.9%E; Y/Y: 4.6% V 4.4%E
    (DK) DENMARK AUG UNEMPLOYMENT RATE: 3.8% V 3.9% PRIOR; GROSS UNEMPLOYMENT RATE: 4.5% V 4.6% PRIOR
    (DK) DENMARK Q2 FINAL GDP Q/Q: 0.2% V 0.2%E; Y/Y: 1.8% V 2.0%E
    (TR) TURKEY AUG TRADE BALANCE: -$4.89B V -$4.88BE
    (AT) AUSTRIA AUG PPI M/M: -0.5% V -0.2% PRIOR; Y/Y: -1.5% V -1.1% PRIOR
    (HU) HUNGARY AUG PPI M/M: -0.8% V -0.7% PRIOR; Y/Y: -0.8% V 0.3% PRIOR
    (TH) Thailand Aug Current Account Balance: $2.91B v $2.1B prior, Trade Balance: $2.7B v $ 2.7B prior;
    *(DE) GERMANY SEPT UNEMPLOYMENT CHANGE: +2K V -5KE; UNEMPLOYMENT RATE: 6.4% V 6.4%E
    (IT) ITALY AUG PRELIMINARY UNEMPLOYMENT RATE: 11.9% V 11.9%E
    (ES) Spain July Current Account Balance: €2.98B v €1.3B prior
    *(UK) Q2 FINAL GDP Q/Q: 0.7% V 0.7%E; Y/Y: 2.4% V 2.6%E
    *(UK) Q2 CURRENT ACCOUNT BALANCE: -£16.8B V -£22.2BE
    *(UK) Q2 FINAL TOTAL BUSINESS INVESTMENT Q/Q: 1.0% V 2.9% PRELIM; Y/Y: 3.1% V 5.0% PRIOR
    (UK) Sept Lloyds Business Barometer: 45 v 45 prior
    *(IS) ICELAND CENTRAL BANK (SEDLABANKI) LEAVES 7-DAY LENDING RATE AT 6.25%
    (EU) EURO ZONE SEPT ADVANCE CPI Y/Y: -0.1% V 0.1% PRIOR; CPI CORE Y/Y: 0.9% V 0.9% PRIOR
    (EU) EURO ZONE AUG UNEMPLOYMENT RATE: 11.0% V 10.9%E
    (IT) ITALY SEPT PRELIMINARY CPI (NIC INCL. TOBACCO) M/M: -0.3% V -0.3%E; Y/Y: 0.3% V 0.3%E
    (GR) Greece Retail Sales Value Y/Y: -0.4% v -0.4% prior; Retail Sales Volume Y/Y: -8.7% v -5.7%e
    (BE) Belgium Aug Unemployment Rate: 8.8% v 8.5% prior

    Contributed by Trade The News
About us
StockMarketsReview.com provides news coverage, analysis and researches for world stock markets, commodities and currencies. We publish articles provided by experts of leading brokerage and investment companies. At our website investors can find daily, weekly and monthly reports, news, recommendations on the IPOs and fundamental analysis for stocks which are currently traded at the stock exchange.