NEWS / Foreign Exchange

European Market Update

• *** ECONOMIC DATA ***
• SP Aug Services Sector Turnover: 6.1%  v 8.8% prior
• IT Oct Business Confidence: 92.9 v 92.1e
• IT Sep Trade Balance Non-EU: -?‚¬2.11B v -?‚¬1.69Be || Prior revised from -?‚¬961M to -?‚¬981M
• EU Aug Current Account: ?‚¬3.8B v ?‚¬2.0Be || Prior revised from ?‚¬1.7B to ?‚¬3.8B
• EU Oct Advanced PMI Manufacturing: 51.5 v 52.9e
• EU Oct Advanced PMI Services: 55.6 v 54.5e
• EU Oct Advanced PMI Composite: 54.5 v 54.6e
• *** SPEAKERS/COMMENTS ***
• ECB Trichet: A credible commitment to maintaining price stability is essential in a globalized world
• ECB Trichet: Monetary policy has to ensure that inflation expectations are well anchored
• ECB Gonzalez-Paramo: The market turmoil does not have to mean weaker growth nor weaker inflation
• ECB Gonzalez-Paramo: Uncertainty means that the ECB needs to be cautious
• ECB Gonzalez-Paramo: Sees upside risks to price stability
• ECB Gonzales-Paramo: Inflation above 2.0% is no reason to change the ECB??™s assessment
• Warren Buffet: Chinese investors should be cautious as prices soar
• Warren Buffet: Sub-prime crisis is a real problem in the US
• *** FIXED INCOME/FX ***
• Early strength in December Bund Futures contract attributed to chatter/concerns that Eurex maker maker ceased operations
• UK DMO sells ??925M in 1.125% 2037 I/L gilts with an real yield of 1.049% and a bid-to-cover of 1.72; Brings amount outstanding for the issue up to ??4.775B; Bid-to-cover on the previous auction was 1.71x
• GE Sells ?‚¬3.658B in 2.25% April 2013 Boblei with an average yield of 1.99% and a bid-to-cover of 1.8x