Spain Raises

Arthi Gupta
21 Aug, 2012
New York City

The European indexes gained and Spain sold

[R]1:45 PM Frankfurt – The European indexes gained and Spain sold €4.5 billion of short-term debt at lower yields. German leading economic index decreased in June. The UK public sector net borrowing increased in July. Glencore earnings declined on lower commodity prices.[/R]

European indexes gained modestly on the hopes that the fresh round of meeting among leaders may find offer more insights in the Greek bailout and how the Spanish request for bank capital is likely to be processed.

Greek Prime Minister Antonis Samaras and the head of the euro zone ministers group Jean-Claude Juncker later today.

German Chancellor Angela Merkel and French President Francois Hollande are scheduled to meet later in the week also but both leaders have played down expectations.

In economic news, Swiss broad money supply growth rose in July and German leading economic index decreased in June.

In earnings news, Glencore revenues grew 17% helped by higher oil volumes handled and Coca-Cola Hellenic Bottling Co S.A. net sales grew 1% in the first half.

In Paris trading, the CAC-40 Index gained 21.21 or 0.6% to 3,501.74 and in Frankfurt the DAX Index edged higher 22.89 or 0.3% to 7,057.96.

The yields on Spain’s benchmark 10-year bonds fell four basis points to 6.24%. Italian 10-year yields were at 5.68%.

Spanish Bond Auction

Spain sold €4.5 billion or $5.6 billion of 12- and 18-month T-bills at lower borrowing costs.

The Spanish Treasury sold €3.5 billion of the 12-month bills at an average yield of 3.07% compared to an average yield of 3.918% in July. The bid-to-cover ratio fell to 1.9 from 2.2 last month.

The treasury also sold €982 million of the 18-month Treasury bill. The average yield fell to 3.335% from 4.242% in July. However, the bid-to-cover ratio rose to 4 compared to 3.7 in July.

German Leading Index Declines

Germany''s leading economic index decreased 0.8% on a monthly basis to 103.2 in June, data from a survey by the Conference Board showed today.

The coincident economic index, which measures the current situation, declined 0.1% sequentially to 107 in June, driven mainly by the negative contribution from industrial production.

UK Public Sector Borrowing Climbs

The UK public sector net borrowing increased in July, data from the Office for National Statistics showed.

Public sector net borrowing was £0.6 billion in July; £3.4 billion higher net borrowing than in July 2011, when the nation repaid £2.8 billion.

Public sector net debt was £1,032.4 billion at the end of July, equivalent to 65.7% of gross domestic product.

Public sector current budget surplus was £1.2 billion in July 2012; £3.0 billion lower surplus than in July 2011, when there was a surplus of £4.2 billion.

Swiss M3 Money Supply Growth Rises

Switzerland''s broad money supply or M3 grew 9.8% annually in July from the 8.5% increase in June, data from the Swiss National Bank showed today.

The narrow measure of money supply, M1, rose 15.6% from a year ago in July compared to the 13.6% increase in June.

Dutch Home Prices Drop

Home prices in the Netherlands dropped in July, data released by the Central Bureau of Statistics showed today.

The index of existing home prices fell 8% on an annual basis in July, making the biggest decrease since the series started in 1995.

Prices of single family homes declined 8.3% compared to July 2011, data showed.

Gainers & Losers

Afren Plc rose 0.6% to 127.30 pence after the oil and gas explorer reported first-half revenues surged 379.3%to $771.7 million. Pre-tax profit for the period soared 621.7% to $316.1 million from $43.8 million last year.

Coca-Cola Hellenic Bottling Co S.A. climbed 0.9% to €14.78 after the Greece focused bottler reported first half net sales grew 1% to €3.432 billion from the prior year. Volume dropped 2% to 1,011 million unit cases. Comparable net profit fell 25% to €109 million from €146 million last year.

Glencore International Plc dipped 0.2% to 352.95 pence after the integrated producers and marketers of commodities reported first-half revenues rose 17% to $107.96 billion. Net income attributable to equity holders decreased 8% to $2.28 billion.

John Wood Group PLC fell 1.5% to 823 pence after the energy services provider said first-half revenue rose to $3.35 billion compared to $2.47 billion last year. EBITA for the period surged 53.2% to $205.1 million compared to $133.9 million last year.

Sixt AG gained 1.9% to €14.66 after the mobility service provider said first-half total revenue climbed 2.8% to €777.1 million, from €755.8 million a year ago. Earnings before taxes declined to €63.4 million, from €71.4 million the prior year.