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DAILY US OPENING NEWS: The EONIA curve bull flattened after the ECB said that banks will repay EUR 3.484bln in 3y loans (exp. EUR 20bln)...

The EONIA curve bull flattened after the ECB said that banks will repay EUR 3.484bln in 3y loans (exp. EUR 20bln) Eurozone Manufacturing PMI (Jan F) M/M 47.9 vs. Exp. 47.5 (Prev. 47.5), 11-month high and EUR/USD printed a fresh 15-month high Chinese HSBC Manufacturing PMI (Jan F) M/M 52.3 vs. Exp. 52.0 (Prev. 51.5), hitting a two-year high Market participants await the release of the latest jobs report from the BLS RANsquawk European Morning Briefing Video: http://youtu.be/q_sTmRR9N-g Market Re-Cap Heading into the North American open, equities in Europe are trading higher, apart from the Spanish Ibex, which has underperformed its peers as market participants reacted to yesterday's expiration of the short-selling ban in Spain. Elsewhere, in spite of opening sharply lower after acknowledging reports that it is to take an impairment charge, Credit Agricole (+2.5%) shares staged an impressive come back and are now one of the best performing stocks in Europe. Of note, co. said that charges mainly reflect tighter regulatory requirements as well as macroeconomic and financial environment. The risk on sentiment was in part supported by the latest HSBC Manufacturing report from China, which hit a two-year high, as well as an encouraging set of EU related PMIs released this morning. Looking elsewhere, EUR/USD erased barriers at 1.3600/50 and 1.3675 which consequently lifted gamma and saw the 1-month risk/reversal trade at its highest level in almost 3-years. Of note, the EONIA curve bull flattened after the ECB said that banks will repay EUR 3.484bln in 3y loans (exp. EUR 20bln). Finally, going forward, market participants will now await the release of the latest jobs report from the BLS at 1330GMT (0730CST). Asian Headlines Chinese Official Manufacturing PMI (Jan) M/M 50.4 vs. Exp. 51.0 (Prev. 50.6) The sample size for the survey had been increased to 3,000 firms from the previous 820 across 31 industries from Jan.1. Chinese HSBC Manufacturing PMI (Jan F) M/M 52.3 vs. Exp. 52.0 (Prev. 51.5), hitting a two-year high. New orders sub-index, which has the biggest weighting in the PMI, climbed to 53.7, a level not seen since January 2011. HSBC China Chief Economist sees increasing signals of a sustained growth recovery in coming months. The steady investment growth led by infrastructure projects, improving labour market conditions boosting consumer spending, and the ongoing re-stocking process to lift production growth. EU & UK Headlines The EONIA curve bull flattened after the ECB said that banks will repay EUR 3.484bln in 3y loans (exp. EUR 20bln). Of note, 3-month Euribor interest rate fixed at 0.234% vs. Prev. 0.232% (Exp. 0.233%) Eurozone Manufacturing PMI (Jan F) M/M 47.9 vs. Exp. 47.5 (Prev. 47.5), 11-month high German Manufacturing PMI (Jan F) M/M 49.8 vs. Exp. 48.8 (Prev. 48.8) French Manufacturing PMI (Jan F) M/M 42.9 vs. Exp. 42.9 (Prev. 42.9) Italian Manufacturing PMI (Jan) M/M 47.8 vs. Exp. 47.4 (Prev. 46.7), highest since March 2012 Spanish Manufacturing PMI (Jan) M/M 46.1 vs. (Prev. 44.6), 21st straight month of decline Eurozone CPI Estimate (Jan) Y/Y 2.0% vs. Exp. 2.2% (Prev. 2.2%) lowest rate November 2010 Eurozone Unemployment Rate (Dec) M/M 11.7% vs. Exp. 11.9% (Prev. 11.8%, Rev. 11.7%) Fitch does not expect a Eurozone break up, according to Fitch's Managing Director Stringer. Moody's says Greece default still likely. (SINAEnglish) Default still likely because of Athens's inability to cope with the implementation of the second bailout program. Greek economy will shrink by 5% in 2013. Spanish regulator did not extend short selling ban, which consequently weighed on Spanish banking stocks. UK Manufacturing PMI (Jan) M/M 50.8 vs. Exp. 51.0 (Prev. 51.4) and output PMI 54.2 (highest since September 2011). US Headlines On Thursday the Senate passed a bill to extend the US debt ceiling by three months to May 19th. The Senate passed the vote 64-34. This vote to extend the debt ceiling follows the same decision made in the House last week and now allows Congress to concentrate on the upcoming automatic spending cuts, also known as Sequestration, which takes effect on March 1st. US Treasury to fully unwind debt-ceiling 'extraordinary measures' once President Barack Obama signs legislation passed by the Senate on Thursday, according to a Treasury official. The move would once again make available steps the Treasury can use to buy roughly two months of extra time if there is another debt-ceiling impasse, though the Treasury official cautioned that the department doesn't have a precise estimate for how long the measures would last. Equities Heading into the North American open, equities in Europe are trading higher, apart from the Spanish Ibex, which has underperformed its peers as market participants reacted to yesterday's expiration of the short-selling ban in Spain. Elsewhere, in spite of opening sharply lower after acknowledging reports that it is to take an impairment charge, Credit Agricole (+2.5%) shares staged an impressive come back and are now one of the best performing stocks in Europe. Of note, co. said that charges mainly reflect tighter regulatory requirements as well as macroeconomic and financial environment. Credit Agricole (+2.5%) confirms it is to take EUR 2.68bln goodwill write down in Q4. BBVA (-1.2%) reported 2012 Net EUR 1.68bln vs. Exp. EUR 1.65bln. 2012 Net interest income EUR 15.12bln. Q4 Net EUR 20.0mln vs. Exp loss EUR 2.9mln. Elsewhere, MetLife to buy Co.'s Chilean pension business for about USD 2bln. Sees EUR 500mln net gain from Provida sale in H2. Dell's founder Michael Dell to hold majority stake after buyout . Silver Lake and Microsoft are set to be minority investors. Co. shares up 6.3% in pre-market. For a full rundown of EU equity news, please refer to European Equity Opening News report located in research section. Complete rundown of US equity news will be available on the website at 1400GMT (0800CST) FX EUR/USD erased barriers at 1.3600/50 and 1.3675 which consequently lifted gamma and saw the 1-month risk/reversal trade at its highest level in almost 3-years. Broad based surge by the EUR saw EUR/GBP trigger barriers through 0.8600 level and then grind to its highest level since late November 2011. USD/JPY traded at its highest level since June 2010 after barriers at 92.00 level were erased overnight, which consequently saw the implied vols edge back towards highest level since mid-Jan. Commodities WTI crude futures are currently trading around session lows after a quiet Asian session which saw the release of disappointing Chinese PMI which came in at (Jan) M/M 50.4 vs. Exp. 51.0 (Prev. 50.6). Looking ahead, market participants will focus on the key US Non-farm payroll data set for release at 1330GMT/0730CST. Iran's crude exports to Asia fell by a quarter in 2012 and shipments this year are expected to drop by at least 12% under US sanctions pressure. South Korea raised its overseas crude purchases in January by 0.9%, the first year on year increase since November. Imports climbed up by about 2.6mln BPD. Complete rundown of energy news is available in research section of the website.

01 Feb 2013 - 14:04 - Equities Data - Source: RANsquawk

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