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.