Reply To: Traders Market Weekly: Cracks Widen in China and Emerging Markets

#74559
Truman
Participant

Major European indices trade near their flat lines while the U.K.’s FTSE (+0.4%) outperforms, building on yesterday’s bounce off a four-week low.

STOXX Europe 600: +0.1% (-0.7% week-to-date),
Germany’s DAX: -0.2% (-1.1% week-to-date),
U.K.’s FTSE 100: +0.4% (-0.6% week-to-date),
France’s CAC 40: -0.1% (-1.5% week-to-date),
Italy’s FTSE MIB: +0.1% (-0.1% week-to-date),
Spain’s IBEX 35: -0.2% (+0.6% week-to-date).

The market received a big batch of data, which included an acceleration in the eurozone’s yr/yr CPI growth rate to 2.6% from 2.4%, in-line GDP revisions from France (0.2% qtr/qtr) and Italy (0.3% qtr/qtr), and disappointing April Retail Sales from Germany (-1.2% m/m; expected -0.2%).

Eurozone
European Central Bank policymaker Panetta said that monetary policy will remain restrictive even after several rate cuts are made.
flash May CPI 0.2% m/m, as expected (last 0.6%); 2.6% yr/yr (expected 2.5%; last 2.4%).
May Core CPI 0.4% m/m (last 0.7%); 2.9% yr/yr (expected 2.7%; last 2.7%)

Germany
April Retail Sales -1.2% m/m (expected -0.2%; last 2.6%); -0.6% yr/yr (last -1.9%).
April Import Price Index 0.7% m/m (expected 0.5%; last 0.4%); -1.7% yr/yr (expected -1.8%; last -3.6%)

U.K.
A survey conducted by Lloyds showed that British business confidence is at its highest level in eight years.
May Nationwide HPI 0.4% m/m (expected 0.1%; last -0.4%); 1.3% yr/yr (last 0.6%).
April BoE Consumer Credit GBP730 mln (expected GBP1.50 bln; last GBP1.42 bln),
April Mortgage Lending GBP2.41 bln (expected GBP450 mln; last GBP460 mln),
April Net Lending to Individuals GBP3.10 bln (expected GBP2.00 bln; last GBP1.80 bln)

France
Q1 nonfarm payrolls 0.3% qtr/qtr (expected 0.2%; last 0.2%).
Flash May CPI 0.0% m/m (expected 0.1%; last 0.5%); 2.2% yr/yr (expected 2.4%; last 2.2%).
Q1 GDP 0.2% qtr/qtr, as expected (last 0.1%); 1.1% yr/yr, as expected (last 0.7%).
April PPI -3.6% m/m (last -1.0%); -6.8% yr/yr (last -8.3%).
April Consumer Spending -0.8% m/m (expected 0.2%; last 0.5%)

Italy
Q1 GDP 0.3% qtr/qtr, as expected (last 0.2%); 0.7% yr/yr (expected 0.6%; last 0.6%).
Flash May CPI 0.2% m/m, as expected (last 0.1%); 0.8% yr/yr, as expected (last 0.8%). March Industrial Sales -2.9% m/m (last 1.9%); -5.1% yr/yr (last -1.7%)

Spain
March Current Account surplus EUR3.29 bln (last surplus of EUR1.90 bln)

Swiss
April Retail Sales 2.7% yr/yr (expected 0.2%; last -0.2%)