logo-loader

EUROPEAN OPENING NEWS INCLUDING: ESM's Regling said ESM has enough intervention capacity for Italy or Spain

Last updated: 09:41 02 Oct 2013 BST, First published: 08:41 02 Oct 2013 BST

no_picture_pai

Asia

Chinese President Xi Jingping said China is determined to stabilize growth and focus on quality and efficiency of growth. Xi further stated that emerging markets should boost risk preparedness and that developed economy policies should avoid negative spillover. (Newswires)

10yr JGBs moved higher overnight (up 14 ticks at 144.37) which saw 10yr and 20yr yields fall to 5 month lows, amid the BoJ conducting open market operations for a total of JPY 1.05trl in JGBs. The Nikkei 225 underperformed its regional counterparts (down 1.73%), weighed by JPY strength and announcements that the sales tax will be hiked to 8% from the current 5% next April. Last price taken at 0620BST. (RANsquawk)

Europe

Italian PM Letta is to call a confidence vote, according to Parliamentary Affairs Minister Franceschini. (ANSA) Italy September state sector budget deficit EUR 15.5bln vs EUR 11.422bln deficit in September 2012. (Newswires)

ESM's Regling said ESM has enough intervention capacity for Italy or Spain. (Newswires)

Spanish PM Rajoy says September unemployment rose M/M, but will be best September number in several years. (El Mundo) Bank of Spain's Restoy said any easing of Spain reform effort would be destructive.(Newswires)

ECB's Constancio said Europe’s banks undervalued and are just as strong as US rivals. (Newswires)

Greek PM Samaras said that Europeans pledged to help with Greek debt in November and that it is important not to procrastinate on the Greek debt solution. (Newswires)

UK

Some of the UK's leading mortgage lenders have expressed misgivings with the government's Help to Buy scheme due to risks that will be created by low deposits and high loan-to-value ratios. Just the state-backed banks RBS and Lloyds Banking Group have signed up to the scheme. (FT-More)

FX

In the FX markets, most major currencies weakened against USD despite further stalemate in the US government shutdown showdown, with the Democrats defeating House spending measures to fund 3 separate agencies. Elsewhere, AUD was pressured by a larger than expected Trade Balance deficit of 815mln vs. Exp. 400mln, which also saw the previous deficit revised wider to 1375mln from 765mln. (RANsquawk)

Commodities

WTI crude futures saw little price action overnight and heads into the European open with losses of USD 0.42 at USD 101.62. (RANsquawk)

US API US Crude Oil Inventories (Oct) W/W 4500K vs. Prev. -54k

- Cushing Crude Inventory (Oct 01) W/W -83K vs. Prev. -395K

- Gasoline Inventories (Oct 01) W/W 326K vs. Prev. 341K

- Distillate Inventory (Oct 01) W/W -157K vs. Prev. 485K

US

US Treasuries finished with losses after a choppy session amid a US government shut-down, the first in 17 years, which saw participants remain on the sidelines. After falling overnight, T-notes saw gains ahead of the open led higher by CTAs and Asian account buying. The move higher was extended further by a 5k block trade at 126.08+ and a 7k at 126.09. Nevertheless, T-notes pared most of their gains as today's ISM manufacturing data came in at the highest since April 2011. Prices remained subdued with a lack of further development over the government shut-down as the uncertainty saw the highest rate paid since 27th November 2012, in yesterday's 4-week bill auction. At the close,T-notes settled at 126.04, down 7+ ticks. Heading into the European open T-notes trade flat at 126.04, last price taken at 0620BST.

US Treasury Secretary Lew said the Treasury has begun using final extraordinary measures to maintain borrowing authority. Lew added the US will exhaust extraordinary measures no later than Oct. 17, leaving the government with about USD 30bln in cash. Lew further stated the government shutdown will not impact projections materially unless it continues for extended period. (Newswires)

US President Obama is willing to work on a budget compromise, according White House spokesman Jay Carney.

Carney added that the won't negotiate with congress under threat and that Congress has a duty to pass budget bills. (Newswires)

You can now follow real-time news headlines on the move with the new RANsquawk app available to download for free at ransquawk.com/mobile_app for Apple iPhone, Blackberry and Android users. Please note the headlines can be viewed on the app between 0630BST/0030CST to 2200BST/1600CST Monday to Friday but does not include Asian-Pacific news.

Cordiant Digital Infrastructure marks three years of strategic growth and...

Cordiant Digital Infrastructure Ltd (LSE:CORD) Chairman of Digital Infrastructure Steven Marshall and Chief Financial Officer Mark Tiner joined Steve Darling from Proactive to provide some insight on the company’s three-year anniversary since listing on the London Stock Market. The company...

1 hour, 1 minute ago