Recap 2014-07-25

Commentary:

None

Notable:

  • US DGO rose 0.7% vs 0.5% exp, but Core Orders rose 1.4% vs 0.5% exp. However this was offset by a revision to last month’s print from +0.7% to -1.2%.
  • Japan June core national CPI came in at +3.3% YoY. Factoring out the Bank of Japan’s calculation of a +2.0 pp boost to the June national CPI from the tax hike, the CPI works out to +1.3%, decelerating 0.1 pp from +1.4% in May and 0.2 pp from +1.5% in April.
  • German GfK Consumer Confidence improved to 9.0 vs 8.9 exp and prev
  • German IFO declined to 108 vs 109.4 exp and 109.7 prev
  • UK 2Q GDP rose 0.8% QoQ as exp
  • NZ Business Confidence declined to 39.7 vs 42.8 prev, the lowest print in over a year
  • Turkey Trade Balance declined to -7.85Bn vs -7Bn exp and -7.11Bn prev. This is the worst print this year and puts the trade deficit back to average 2013 levels.
  • Turkey’s central bank demanded Thursday that local lenders convert their euro-denominated reserve requirements to dollars, in a move to safeguard mandatory deposits from currency fluctuations and losses following the ECB’s decision to cut rates below zero. Policy makers cited "the latest developments in global financial markets" for their decision. The measure goes into effect Aug. 1 and will replace 12.7 billion Euros that Turkish banks keep at the central bank with $17.1 billion. The revision means Turkish banks no longer can use Euros to meet reserve requirements for lira-denominated assets under the central bank’s reserve-option-mechanism.
  • HY Mutual Funds saw the largest outflow since June 2013. This week, HY Mutual Funds saw $2.4 bn in outflows which followed on the heels of last week’s $1.7 bn outflow. Similarly, Bank Loans Funds had $413 mm in outflows following last week’s $440 mm outflow.

Upcoming:

  • Mon: US Markit PMI, US Pending Home Sales, Japan Unemployment, Australia New Home Sales, UK House Prices
  • Tue: US Consumer Confidence, NZ Building Permits
  • Wed: France Consumer Confidence, GermanyCPI, US ADP, FOMC, UK GfK Consumer Confidence, AustraliaBuilding Approvals
  • Thu: Month End, Japan Housing Starts, EU Unemployment, CPI, US Jobless Claims, Chicago CPI, Australia PMI, China PMI,
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