Europe open: Italian and German debt auctions on tap

Date: Wednesday 13 Jun 2012

-Banks deposit €798bn overnight at ECB
-EU President Barroso speaks before European parliament
-Spanish and Italian debt auctions on tap

FTSE-100: 0.40%
Dax-30: 0.60%
Cac-40: 0.53%
Stoxx 600: 0.20%
FTSE-Mibtel: 0.45%

The main European equity benchmarks have begun today’s session with slight gains. That ahead of important macroeconomic data expected out Stateside this afternoon and ahead of key debt auctions in Italy and Germany this morning.

As well, European Union president Jose Manuel Durao Barroso is speaking before the European parliament, asking for support for the creation of Eurobonds. This after Germany’s Bundesbank yesterday criticized plans for a banking union as premature.

Italy plans to auction €6.5bn of 364- day bills today and debt maturing in 2015, 2019 and 2020 tomorrow. Germany is seeking to sell €5bn euros of 10-year bonds and €1bn euros of inflation-linked bonds maturing in 2018 this morning. The latter following losses yesterday on the back of negative comments out of Fitch.

From a sector stand-point the best performers now on the DJ Stoxx 600 are: insurance (1.61%), retail (0.94%) and technology (0.91%).

Economic data still on tap

Eurozone industrial production figures for the month of April are due out at 10AM.

Spanish consumer prices fell 0.1% month-on-month in May (Consensus: -0.2%).

Slight gains in other asset classes

The euro/dollar is now rising by 0.16% to the 1.2526 dollar mark.

Front month Brent crude futures are gaining 0.715 dollars to the $97.74/barrel level in ICE trading.

AB

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