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EUROPEAN MIDDAY/US MORNING REPORT: WEDNESDAY – 30TH – MAY – 2018 May 30, 2018 at 12:20PM

EUROPEAN MIDDAY/US MORNING REPORT: WEDNESDAY – 30TH – MAY – 2018

 

EUROPEAN MIDDAY/US MORNING REPORT

WEDNESDAY – 30TH – MAY – 2018

Markets:

*  European cash equity markets rebounded this morning from their recent sell off with Italian stocks leading gains (FTSE +0.2%, DAX +0.5%, CAC -0.3%, FTSEMIB +1.9%)

*  Risk sentiment has seen a broad improvement as Italian markets stabilise. Italian 10-year yields have retreated around 30 basis points to 2.86%.

*  Core European and US yields have nudged higher meanwhile with stronger-than-expected data also providing a boost – German retail sales and CPI, Spanish CPI and Euro Zone confidence indicatiors.

*  Stronger data has also boosted the Euro while the Dollar Index shed around 0.5%. Swedish Krona supported by GDP beat.

*  Oil prices and gold little changed.

Key Headlines/Data:

*  Italian President Mattarella would reportedly like to avoid a summer election:

  • Officials said the 5-Star and League are trying again to form a government
  • Salvini reiterated his call for fresh elections but is against July 29th elections. He also said he does not see a chance to form a coalition government now
  • Cottarelli said he sees the possibility of a government headed by politicians
  • 5-Star leader Di Maio said he wants Conte as PM or new elections. He added that he is not seeking an alliance with League

*  German Retail Sales Data (Apr):

  • Retail Sales M/M +2.3% versus +0.5% expected, previous -0.6% revised to -0.4%
  • Retail Sales Y/Y +1.2% versus +1.3% expected, previous +1.3% revised to +1.7%

*  German State CPI (May):

  • Saxony: M/M +0.5%, previous 0.0%  |  Y/Y +2.2%, previous +1.6%
  • Brandenburg: M/M +0.7%, previous -0.1%  |  Y/Y +2.4%, previous +1.6%
  • Bavaria: M/M +0.5%, previous -0.1%  |  Y/Y +2.3%, previous +1.7%
  • Hesse: M/M +0.5%, previous 0.0%  |  Y/Y +1.9%, previous +1.5%
  • Baden-Wurttemberg: M/M +0.5%, previous 0.0%  |  Y/Y +2.3%, previous +1.7%
  • North Rhine-Westphalia: M/M +0.4%, previous 0.0%  |  Y/Y +2.1%, previous +1.5%

*  French GDP Data (Q1 P):

  • GDP Q/Q +0.2 versus +0.3% expected, previous +0.3%
  • GDP Y/Y +2.2% versus +2.1% expected, previous +2.1%

*  Norwegian Core Retail Sales M/M (Apr) +0.6% versus +0.2% expected, previous +1.1% revised to +0.4%

*  Swiss KOF Leading Indicator (May) 100.0 versus 104.8 expected, previous 105.3 revised to 103.3

*  Spanish CPI Data (May P):

  • CPI M/M +0.9% versus +0.5% expected, previous +0.8%
  • CPI Y/Y +2.0% versus +1.7% expected, previous +1.1%
  • CPI EU Harmonized M/M +0.9% versus +0.5% expected, previous +0.8%
  • CPI EU Harmonized Y/Y +2.1% versus +1.7% expected, previous +1.1%

*  Spanish Retail Sales Y/Y (Apr) +0.5% versus +1.4% expected, previous +1.9% revised to +1.6%

*  Swedish GDP Data (Q1):

  • GDP Q/Q +0.7% versus +0.5% expected, previous +0.9% revised to +0.7%
  • GDP Y/Y +3.3% versus +3.4% expected, previous +3.3% revised to +2.9%

*  German Unemployment Rate (May) 5.2% versus 5.3% expected, previous 5.3%:

  • Unemployment Change -11K versus -10K expected, previous -7K revised to -8K

*  Euro Zone Confidence Indicators (May):

  • Consumer Confidence F 0.2 versus 0.2 flash/expected, previous 0.4
  • Economic Confidence 112.5 versus 112.1 expected, previous 112.7
  • Business Confidence 1.45 versus 1.30 expected, previous 1.35 revised to 1.39
  • Industrial Confidence 6.8 versus 6.7 expected, previous 7.1 revised to 7.3
  • Services Confidence 14.3 versus 14.5 expected, previous 14.9 revised to 14.7

Read More: EUROPEAN MIDDAY/US MORNING REPORT: WEDNESDAY – 30TH – MAY – 2018

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