European Market Update - Manufacturing and Industrial Production are Mixed in Dec

Discussion in 'Trading' started by TradeTheNews, Feb 7, 2007.

  1. TradeTheNews

    TradeTheNews ET Sponsor

    - The European indices are currently trading mixed with the Dax and Cac gaining support from positive earnings reports ahead of the open. The European indices have been trading near six-year highs on speculation that there will be more consolidation over the coming months.
    - European government bonds are currently trading lower in the session on little news ahead of German industrial production data for the month of December. In the UK gilts are currently trading lower after spending the earlier part of the session in positive territory. Gilts drifted lower after the release of mixed industrial and manufacturing data for the month of December. In other bond related news Sweden sold SEK 2.5B in 3.75% 2017 notes with an average yield of 3.926%; 10 of 30 bids were accepted in the auction.
    - On a seasonally adjusted basis Swiss unemployment fell to a four-year low in the month of December as companies boosted employment levels in order to meet increasing demand. Swiss companies continue to add workers as a weak Swiss Franc along with heightened economic growth on a global level spurred an increase in Swiss exports.
    - Spanish preliminary harmonized CPI came in at 2.4% y/y in January, falling to its lowest level since March of 2004. CPI fell after Spanish retailers reduced prices after the holiday season.
    - Norwegian unemployment fell to its lowest level in nearly right years during the month of November, increasing pressure on Norges Bank to raise interest rates in the coming months. According to some analysts, the recent drop in unemployment has played a large role in both retail sales and credit growth over the past year; the trend, according to some analysts, is likely to continue.
    - Industrial production for the month of December fell below estimates in the UK, while manufacturing production exceeded analyst estimates. Most notable was the upward revision to November’s y/y manufacturing production figure, bringing it up to 2.6% making it the highest since June of 2004.
    - The BRC shop price index rose fell to 1.84% y/y in the month of January, from its highest level since March of 2004 last month. The shop price index fell by 0.6% m/m from December.
    - The German deputy finance minister said that fx is a central element of G7 talks. The deputy finance minister noted that China is expected to join talks about forex, with focus on large fx flows into China, and the high current account deficit in the US.
    - Front month crude futures continue to trade between the $59 and $60 handles as cold weather in the Northeast increases the demand for energy.