EUROPEAN MIDDAY/US MORNING REPORT: FRIDAY – 1ST – JUNE – 2018
EUROPEAN MIDDAY/US MORNING REPORT
FRIDAY – 1ST – JUNE – 2018
* European cash equity markets are broadly higher at the midway stage, led by Italy and Spain as political risks recede (FTSE +0.7%, DAX +1.0%, CAC +1.3%, IBEX +2.0%, FTSEMIB +2.6%).
* Italian 10-year yields down 24 basis points to 2.56% as 5-Star & League parties reach a deal to form a government with Conte as PM
* Spanish yields down 15 basis points to 1.35% after Rajoy is replaced by socialist Sanchez as PM.
* Core European and US yields have risen meanwhile amid the broad improvement in risk sentiment.
* Dollar Index flat ahead of payrolls while safe-haven currencies including the Yen are under pressure.
* US crude futures down almost one percent; gold flat.
* Conte’s M5S-League govt to be sworn in (ANSA):
- Italy is set to get a new government later on Friday, almost three months after the March 4 general election, with Giuseppe Conte’s 5-Star Movement (M5S)/League executive scheduled to be sworn in at 15:00 BST
* David Davis devises 10 mile-wide trade buffer zone along Northern Ireland border to break deadlock in Brexit talks (The Sun):
- DAVID Davis is devising a new Brexit plan to break a talks deadlock by giving Northern Ireland joint EU and UK status as well as a border buffer zone.
- Under the radical blueprint, the province would operate a double hatted regime of European and British regulations at the same time, so it can trade freely with both.
* Swedish Manufacturing PMI (May) 55.8 versus 55.0 expected, previous 54.5
* Norway Manufacturing PMI (May) 55.8 versus 56.6 expected, previous 56.2 revised to 56.1
* Spanish Manufacturing PMI (May) 53.4 versus 53.9 expected, previous 54.4
* Swiss Manufacturing PMI (May) 62.4 versus 62.0 expected, previous 63.6
* Italian Manufacturing PMI (May) 52.7 versus 52.9 expected, previous 53.5
* French Manufacturing PMI (May F) 54.4 versus 55.1 flash/expected
* German Manufacturing PMI (May F) 56.9 versus 56.8 flash/expected
* Euro Zone Manufacturing PMI (May F) 55.5 versus 55.5 flash/expected
* Norwegian Unemployment Rate (May) 2.2% versus 2.2% expected, previous 2.4%
- Unemployment Change +80.21K versus +82.60K expected, previous +83.43K
* Italian GDP Data (Q1 F):
- GDP Q/Q +0.3% versus +0.3% expected, previous +0.3%
- GDP Y/Y +1.4% versus +1.4% expected, previous +1.4%
* Spanish socialist leader Sahchez has taken over the role of PM after Rajoy lost a no-confidence motion.
* UK Manufacturing PMI (May) 54.4 versus 3.5 expected, previous 53.9
* Yonhap: North Korea and South Korea have agreed to military talks on June 14th
* Riksbank Governor Ingves said inflation has been a bit weaker than they expected, adding that it is important they hold inflation around two-percent.