FXstreet.com (Barcelona) - The European bourses are edging higher today on speculation over a Spanish aid request and a Greek extension to its bailout terms, and better activity data and earnings season in the US. Also, the German Chancellor Merkel gave a pro-euro speech today, stating that progress has been made against the debt crisis, but it will take years of 'systematic work' to solve the crisis. She also observed that Greece is changing its 'whole way of thinking' and she's against a split EU into euro/non-euro.
The Spanish bond auction sold more bills than targeted and achieved a lower average yield than the previous 12 and 18 month auctions. Meanwhile, Spanish authorities will be proposing common issuance of bill auctions to start a fiscal union in the next EU summit.
The ZEW survey signals improved economic sentiment in Germany, from -18.2 to -11.5, but worsening current situation from 12.6 to 10.0, and a rebounding economic sentiment in the Eurozone from -3.8 to -1.4 in October. The final reading of EMU CPI eased from the preliminary very high reading of 2.7%, and came in at 2.6% in September.
The German DAX 30 and the French CAC 40 gain +0.70% and +0.60%, respectively, while the Italian FTSE MIB rise by +0.55% and the Spanish IBEX 35 rallies by +1.50%. The British FTSE 100 edges higher by +0.67%, following the London session that saw released consumer and producer prices data. The annual UK September CPI eased from +2.5% to +2.2%, in line with consensus, and still above BoE's target of +2.0%. The annual PPI data saw declining input figures from +1.4% to -1.2% and rising output from +1.1% (revised down from +2,3%) to +2.5%. The annualized retail sales eased from +2.9% to +2.6%, as expected, with a monthly rising pace from +0.4% to +0.5%, also as forecast.
Futures for the American S&P 500, Nasdaq 100 and Dow Jones 30 are signaling a higher opening between +0.32% and +0.40% ahead of the US CPI data, at 12:30 GMT, the Redbook Index, at 12:55 GMT, and the US industrial production, at 13:15 GMT. TD Securities analysts expect both US September CPI and Industrial Productions to beat consensus estimates.
The Spanish bond auction sold more bills than targeted and achieved a lower average yield than the previous 12 and 18 month auctions. Meanwhile, Spanish authorities will be proposing common issuance of bill auctions to start a fiscal union in the next EU summit.
The ZEW survey signals improved economic sentiment in Germany, from -18.2 to -11.5, but worsening current situation from 12.6 to 10.0, and a rebounding economic sentiment in the Eurozone from -3.8 to -1.4 in October. The final reading of EMU CPI eased from the preliminary very high reading of 2.7%, and came in at 2.6% in September.
The German DAX 30 and the French CAC 40 gain +0.70% and +0.60%, respectively, while the Italian FTSE MIB rise by +0.55% and the Spanish IBEX 35 rallies by +1.50%. The British FTSE 100 edges higher by +0.67%, following the London session that saw released consumer and producer prices data. The annual UK September CPI eased from +2.5% to +2.2%, in line with consensus, and still above BoE's target of +2.0%. The annual PPI data saw declining input figures from +1.4% to -1.2% and rising output from +1.1% (revised down from +2,3%) to +2.5%. The annualized retail sales eased from +2.9% to +2.6%, as expected, with a monthly rising pace from +0.4% to +0.5%, also as forecast.
Futures for the American S&P 500, Nasdaq 100 and Dow Jones 30 are signaling a higher opening between +0.32% and +0.40% ahead of the US CPI data, at 12:30 GMT, the Redbook Index, at 12:55 GMT, and the US industrial production, at 13:15 GMT. TD Securities analysts expect both US September CPI and Industrial Productions to beat consensus estimates.
