News Headline Summary

EU MID-SESSION UPDATE - 22/11/12

European equities opened higher this morning and have held on to their gains after Chinese HSBC Manufacturing PMI was above 50.0 for the first time in 13 months, confirming the economic recovery in China is continuing to gain momentum. In Europe, French, German and Eurozone PMI’s came in mixed although France did beat expectations on the headline manufacturing figure. Initial reaction saw EUR/USD move to the upside although no reaction was seen following the other PMI releases.

The Spanish bond auction results were released just after 0930GMT which saw a decline in borrowing costs compared to the previous time the 2015 bond was sold. Heading into the auction the bund future edged higher however after the results had pulled off the highs.

The calendar for the rest of the day remains on the light-side with a lack of tier-1 macroeconomic data out of either Europe or the US due to the Thanksgiving holiday although focus will be on today and tomorrow’s EU summit. The EU should also rule on the proposed merger between Glencore and Xstrata today after shareholders from the two companies approved the merger.

22 Nov 2012 - 12:54 - - Source: RANsquawk

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