Euro zone June PPI flat m/m, +5.9% y/y Posted:

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• Euro zone June PPI flat m/m, +5.9% y/y
• CIPS: UK Construction Sees Solid Growth In July
• You think your job’s bad……..
• UK construction PMI for July 53.5
• Italy 5 year credit default swaps rise 24 bps on day to 355 bps
• UK construction PMI for July up soon…
• China name in the frame…..
• Italian Economy Ministry, Bank of Italy, market authorities to meet Tuesday to discuss market turbulance – Source
• Talk of Asian buyer of Spanish bonds
• OECD’s Gurria: US debt deal a relief but more negotiations, more spending cuts needed to resolve the issue
• IMF estimates Australian dollar 10-15% over-valued
• Italy’s FTSE MIB falls -1.8%
• Swiss retail sales +7.4% y/y in June
• Spanish 10 year govt bond yield 6.47%
• Spain July jobless falls by 1.02% m/m, or 42,059 people
• AUD/USD: Stops all over the frickin shop
• Italian/German 10 year govt bond yield spread widening out
• Toyoto executive: Current yen strength beyond limit of corporate effort
• AUD/USD extends slide; stops noted
• Yen’s surge may wipe out Japan’s recovery

Euro zone June PPI flat m/m, +5.9% y/y Posted: Pretty much as expected. Reuters median forecasts +0.1%, +5.9% respectively.

CIPS: UK Construction Sees Solid Growth In July Posted: –July CIPS Construction Index 53.5 Vs 53.6 In June LONDON (MNI) – The UK construction industry saw solid growth in July, according to the latest CIPS/Markit survey. The July CIPS construction index came in at 53.5, little changed from the 53.6 seen in June. “July PMI data signalled that the UK construction sector entered the [...]

You think your job’s bad…….. Posted: A mate of mine works at a recycling plant crushing coke cans. He says its soda pressing……….

UK construction PMI for July 53.5 Posted: Slightly better than median forecast of 53.1. Cable up about 20/25 pips post release, presently at 1.6300.

Italy 5 year credit default swaps rise 24 bps on day to 355 bps Posted: Spanish 5 year credit default swaps rise 32 bps on day to 418 bps Portuguese 5 year credit default swaps rise 59 bps to 1,000 bps

UK construction PMI for July up soon… Posted: Expected down at 53.1 from previous 53.6.

China name in the frame….. Posted: As Asian buyer of Spanish bonds this morning. As we suspected. UK clearer with strong Asian ties seen notable buyer of EUR/USD from around 1.4175/80. All ties in don’t it We’re up at 1.4195 presently. UPDATE: Sovereign buyer helps push EUR/USD back over 1.4200, presently at 1.4215. What flavour of sovereign, haven’t the foggiest

Italian Economy Ministry, Bank of Italy, market authorities to meet Tuesday to discuss market turbulance – Source Posted:

Talk of Asian buyer of Spanish bonds Posted: Not getting any name. Wonder if it’s our old mate the Giant Panda? Could well be.

OECD’s Gurria: US debt deal a relief but more negotiations, more spending cuts needed to resolve the issue Posted: EUR/USD extending rally from session low 1.4158, presently at 1.4190.

IMF estimates Australian dollar 10-15% over-valued Posted: AUD/USD stops through 1.0880 and 1.0870 done. We’ve been as low as 1.0857, presently at 1.0870. More stops through 1.0850.

Italy’s FTSE MIB falls -1.8% Posted: Hitting 27-month low. Euro zone periphery concerns back with a vengeance today. Did they ever really go away? No. EUR/USD sits at 1.4170 having been as low as 1.4158. Aforementioned buy orders at 50/60 so far soaking up the heavy selling pressure. One wonders for how long? Guess time will tell, as it always does…..

Swiss retail sales +7.4% y/y in June Posted: Compared to -4.1% in May. EUR/CHF reaches new session low of 1.1035 in wake of data. The barrier interest at 1.1000 is looming large.

Spanish 10 year govt bond yield 6.47% Posted: Highest since 1997. Oh-eh.

Spain July jobless falls by 1.02% m/m, or 42,059 people Posted: To 4.08 mln. Good news, but still a horrible total out of work. Meanwhile, EUR/USD has slipped through 1.4200, presently at 1.4195 having been as low as 1.4180. Talk of decent buy orders lined up down at 1.4150/60. DAX down 0.7% early.

AUD/USD: Stops all over the frickin shop Posted: Well in addition to the sell stops through 1.0880 I mentioned earlier, now being told sell stops also seen through 1.0870 and more through 1.0850.

Italian/German 10 year govt bond yield spread widening out Posted: Presently stands at 370 bps, up from the 345 bps I jotted down on my arrival. EUR/USD has slipped to 1.4205 at writing. Elsewhere EUR/CHF has fallen through 1.1100, presently at 1.1075. Risk appetite still anemic. Probably timely to remind readers of what Sean mentioned overnight; ie talk of substantial option structures down at 1.1000 [...]

Toyoto executive: Current yen strength beyond limit of corporate effort Posted: Will try to raise car prices to counter yen but says not easy given Korean competition Will protect market share in US through incentives, but won’t compromise profitability Strong yen may mean manufacturing could indirectly shift out of Japan through components Will try to fight yen strength by buying more parts from abroad Japan govt, [...]

AUD/USD extends slide; stops noted Posted: AUD/USD down at 1.0900 from around 1.0930 when I sat down, having been as low as 1.0890 so far. Talk of Asian sovereign buying, but it hasn’t lent much in the way of support, well at least not so far. Talk of sell stops now lined up through 1.0880.

Yen’s surge may wipe out Japan’s recovery Posted: Bloomberg article