Interest & Currencies: The euro will benefit from lighter European GDP figures – Dagens Industri

Interest & Currencies: The euro will benefit from lighter European GDP figures – Dagens Industri

 (SIX) The euro is favored on Friday of European GDP figures were
  slightly stronger than expected, but exhibit limited changes
  compared to yesterday. The pound has weakened against the crown for the third
  day in a row. Although the yen traded remained weak.
  
     Swedish bond shows a slight downward trend in
  Similar to the development of interest rates abroad. This afternoon turned
  eyes to the important US data.
  
     Statistics Sweden announced that capacity utilization in the Swedish industry
  fell 0.2 percentage points in the third quarter to 88.7 percent.
  Swedish company’s total stock volume rose by 0.7 percent.
  
     “The increase in inventories balances some weakness that has been seen in other hard
  data, but there is still a risk to GDP declined in the third
  quarter. The weak GDP growth in the quarter was due to
  weak exports and  disappointing on household consumption, ”
  writes Nordea economist Torbjorn Isaksson.
  
     GDP for EMU countries grew 0.2 percent in the third quarter
  compared to the second quarter. Compared to last year’s third quarter
  GDP was up 0.8 percent. Both figures were slightly better than expected.
  
     “Looking ahead, it is unlikely with a recession in the euro and
  but that is not likely with a significant rise in the fourth
  quarter. Slow growth is expected to come, and the pressure on the ECB to
  act will remain high, “said Nordea economist Holger
  Sandte.
  
     “We stand by the assessment that it is not going to go well into the
  2015 before the ECB will be forced to supplement their current
  balance sheet measures, “writes Handelsbanken economist Rasmus Gudum
  Sessingö.
  
     From the inflation front,  Eurostat announced that consumer prices
  EMU rose by 0.4 per cent during October, which was in
  line with the preliminary ruling.
  
     “Overall, we expect that inflation will continue to move
  sideways until the end of the first quarter of 2015 “, said
  Barclays.
  
     Newspaper alleges that the Government of Japan has decided to
  to postpone the planned VAT increase that could
  undermine the government’s ambition to revive the country’s economy. An
  options that the government is said to consider is to not announce any new
  timing of the VAT increase and call a new election.
  
     During the afternoon expected US data on retail sales,
  import prices and industrial warehouses and Michigan Consumer Sentiment Index.
  
     “Both revenue and confidence rises in household and
  supports the expansion in retail, “said  Nordea.
  
                                13-Nov 14-Nov 14 Nov
  Time 16:15 09:15 12:35
  
  Sweden 2Y (1050) -0.03 -0.02 -0.02
  Sweden 5Y (1052) 0.25 0.25 0.24
  Sweden 10Y (1058) 1.14 1.13 1.13
  German Govt Bond 10Y 0.76 0.75 0.75
  Spreads Ger-Eng peasant 10Y -0.38 -0.38 -0.38
  Italy 10Y 2.35 2.35 2.35
  Spain 10Y 2.12 2.12 2.12
  US Govt Note 10Y 2.36 2.35 2.35
  US Govt Bond 30Y 3.09 3.07 3.07
  USD / SEK spot 7.4165 7.4314 7.4164
  EUR / USD spot 9.2540 9.2538 9.2333
  GBP / USD spot 11.6705 11.6425 11.6115
  EUR / USD 1.2478 1.2452 1.2450 spot
  USD / JPY spot 115.62 116.26 116.43
  TCW index 125.97 125.93 125.65
  
  Johan Lind +46 8586164 48
  mailto: johan.lind@six-group.se
  www.blogg.six.seSIXNews
  SIX News