The German DAX 30 (-0.52%), the French CAC 40 (-0.72%), the Spanish IBEX 35 (-1.60%) and the Italian FTSE MIB (-0.45%) are edging lower on Wednesday, like the rest of the European indexes, even the British FTSE 100 (-0.05%) that saw BoE’s King confident in the “Funding for Lending Scheme” (FLS) ability to lower funding costs in his speech after the release of the Quarterly Inflation Report.
Germany discovered a wider trade surplus at €16.2B (imports contracting more than exports) and France saw a wider trade deficit at €-5.99B (exports contracting more than imports). Industrial production in Germany contracted in June. Monthly data dropped by -0.9% in June and the annualized figure is unchanged at -0.3% (May’s number revised from 0.0% to -0.3%).
The German bund auction just had a higher average yield, at 1.42%, after the previous 1.31%. The sovereign was looking to sell €4B and could only find €3.4B, with cover demand at 1.8 times (previously at 1.5).
Germany party CDU’s Meister is against the backing of more financial aid to Greece, but asked the US to tell IMF not to pull out from the country. In regard to the ECB’s bond buying plans, Meister says there’s no rift between the German government (supportive of ECB) and Buba’s Weidmann (against Draghi’s intentions).
Bloomberg’s reported that the Spanish budget deficit target for 2012 was widened from 3.5% to 4.5%.
Futures for the S&P 500, Nasdaq 100 and Dow Jones 30 are signaling a lower open between -0.10% and -0.25% ahead of nonfarm productivity data in the US, as well as the 10-year debt auction (previous average yield of 1.459%.
WTI crude oil is trading at $93.15 (-0.55%) and Gold moves down to $1606 (-0.33%).