EUROPEAN MIDDAY/US MORNING REPORT: FRIDAY – 27TH – JULY – 2018
EUROPEAN MIDDAY/US MORNING REPORT
FRIDAY – 27TH – JULY – 2018
* European cash equity markets are broadly higher ahead of the midway stage. Construction and material names lead on better-than-expected corporate earnings while basic resource stocks have been pulled higher
by BHP Billiton who agreed to sell assets to BP (FTSE +0.5%, DAX +0.4%, CAC +0.2%)
* Moves in the bond markets have been relatively muted with US, UK and German 10-year yields all little changed for the day.
* Dollar Index touched a fresh one week high just above 94.9 ahead of US Q2 GDP with whispers of a near 5% figure. Swedish Krona dropped on weak retail sales data.
* Oil prices nurse minor declined while spot gold has lost -0.3%.
* Futures are pointing to a slightly higher open on Wall Street with minor outperformance seen in tech.
* French GDP Data (Q2):
- GDP Q/Q +0.2% versus +0.3% expected, previous +0.3%
* German Import Price Data (Jun):
- Import Price Index M/M +0.5% versus +0.2% expected, previous +1.6%
- Import Price Index Y/Y +4.8% versus +4.4% expected, previous +3.2%
* French Consumer Spending M/M (Jun) +0.1% versus +0.6% expected, previous +0.9% revised to +1.0%
* Spanish Retail Sales Y/Y (Jun) +0.1%, previous -0.3%
* BoJ official confirmed they carried out a special operation earlier today aimed at keeping yields low.
* Spanish Retail Sales Y/Y (Jun) -0.3%, previous -0.3% revised to -0.1%
* Swedish Retail Sales Data (Jun):
- Retail Sales M/M -1.8%, previous +0.2%
- Retail Sales Y/Y +0.2% versus +2.9% expected, previous +3.1%
* ECB Survey of Professional Forecasters:
- 2018 inflation +1.7% versus +1.5% previous | 2019 inflation +1.7% versus +1.6% previous | 2020 unchanged at +1.7%
- Longer term inflation unchanged at +1.9%
- 2018 GDP +2.2% versus +2.4% previous | 2019 GDP +1.9% versus +2.0% previous
* Italian PPI Data (Jun):
- PPI M/M +0.3%, previous +0.7%
- PPI Y/Y +2.9%, previous +2.4%
* UK Trade Minister Fox said the government should accept a no-deal Brexit over requesting more time to negotiate a deal.
* Looking ahead, the first look at US second quarter GDP will be the main focus this afternoon amid talk of a bumper number. Michigan Sentiment and the Baker Hughes rig count are also due while we await earnings
from Exxon Mobil and Chevron.