- Yield 1.288% vs. Prev. 1.739%; WI stopped at 1.295%
– B/C 2.49 Avg. 2.61 (Prev. 2.39)
– Indirects 63.1% vs. Avg. 54.9% (Prev. 58.7%)
– Directs 9.5% (Prev. 7.3%)
– Dealers 27.4% vs. Avg. 35.7% (Prev. 41.7%)
– Allotted at high 16.65%
EuroStoxx (+0.37%), FTSE 100 (-0.22%), CAC 40 (+0.44%), DAX (+0.25%), IBEX 35 (+0.39%), FTSE MIB (+0.56%), SMI (+1.49%)
Today’s session sees European indices close mixed after a slew of lower than expected earnings coming out of the US. European equities opened on the back foot after a less dovish than expected FOMC meeting, and despite having a period of reprieve before the start of the Wall Street open, US counterparts dragged Europe lower, falling on the miss from Qualcomm (QCOM) after-market yesterday and with Yahoo! (YHOO) shares lower due to downbeat revenue estimates by Alibaba (BABA).
The FTSE is the European underperformer, with energy and material sectors the laggard of the index, amid a poor earnings update before the open by Shell (RDSA LN), who make up around 8% of the index. Energy and materials sectors are also experiencing weakness as a result of the continued slide in oil prices and alongside the spike lower in NatGas futures following the smaller-than-expected drawdown in gas inventories. Elsewhere, silver and gold both trade at session lows in a continuation of the trend that has been seen today with gold now trading at its lowest level since 16th January.
Antipodean currencies have been in the spotlight in FX markets in the wake of the latest RBNZ rate decision and the article from RBA watcher Terry McCrann yesterday, which see both currencies on multi year lows against the USD. Following the RBNZ decision to keep rates on hold, NZD was weighed on by the central bank abandoning its tightening bias, while AUD saw selling pressure as a result of RBA watcher Terry McCrann’s saying the RBA will almost certainly cut rates at the February meeting. Furthermore, Australian OIS are now pricing around a 53% chance for a 25bps cut at the meeting next week from ~7-12% yesterday following the release of the article, which subsequently saw AUD slide throughout the session.
In terms of today’s US data releases, the weekly jobs data came in below expectations and saw a modest bout of weakness in USTs, although this was short-lived as the BLS said claims are often more volatile in holiday shortened weeks. However, tomorrow sees a wave of tier 1 data, with EU CPI, Candian and US GDP as well as US Chicago Purchasing Manager and University of Michigan Sentiment all due out, with earnings from Google (GOOGL), Visa (V) and Amazon (AMZN) released aftermarket tonight.