Europe Markets: European investors again sold bonds

Thursday, November 5, at the European government bond market during the day prevailed "bearish" sentiment. The reason for the sales of protective assets found many. First players were selling state bonds on the background of admissions positive corporate news that sharply raise the demand for shares listed on European trading floors. Thus, the largest French bank BNP Paribas announced that its revenues in the III quarter has increased by 45% and Belgium's Delhaize Group reported a profit in the last quarter that exceeded expectations. In anticipation of ad rates of English and European central banks, market participants were not proactive, if somewhat corrected as release of macroeconomic statistics. In the UK, were published rates of industrial production (Industrial Production) and the manufacturing industry (Manufacturing Production). As reported by national statistical offices in London, the activity in the real sector of the economy began to grow. Industrial output in September rose by 1.6% (expected to increase by 1,2%) in August after declining by 2,6%. In annualized decline in September was 10.3% (as predicted). The annual decline in August was 11.5%. As for the volume of manufacturing output, is increased activity in September compared to August was even greater. Thus, compared to August index rose by 1.7% (projected growth of 1,0%), while in annual terms fell by 9,3% (expected to decline by 9,7%). Exit optimistic economic indicators increased the desire of market participants to get rid of the British Gilts and release funds for risky assets. But the economic statistics of the euro zone was not so optimistic, as the British, and therefore increase sales activity of the European bond did not cause. European Statistical Office in Luxembourg reported a decline of retail sales in September. Rate decreases the sixteenth consecutive month amid rising unemployment and falling consumer demand. In September, the decline in sales exceeded expectations and was the highest since October 2008. Instead of the expected growth in retail sales by 0,2% compared to August index fell by 0,7%. In annual terms, sales decreased by 3,6%, while the predicted decline of only 2.4%. Market participants expect the main event of the day - announcements base rates refinance the Bank of England and the ECB. At first his decision to leave its key interest rate unchanged - at 0.5% per year - said the Bank of England. In addition, the agency decided to increase the amount of redeemable bonds to 200 billion pounds, but not to 225 billion, as previously planned. A smaller amount of redeemable debt was the result of the emergence of indications of an early beginning of the restoration, which gives the British economy in recent years. The decision of the British monetary authorities has further strengthened the sales activity of the British Gilts, which led to a significant drop in prices of securities. Later his decision to leave unchanged its discount rate announced ECB. Record low of 1% per annum was not changed by the Office of Jean-Claude Trichet, as experts believe, because of the fact that the next step could tip the economy stimulus package. Meanwhile, published in the U.S. data showed productivity growth in the industrial sector and reduce the number who applied for unemployment insurance. News spurred additional sales of protective assets not only in the U.S., but also on the European markets. Wave of sales of European government debt, streamed after the U.S. economic statistics, has led to reduced prices of many debt securities. As a result, virtually all of the most liquid securities with a duration of 4 years have decreased in price. Yield 2-year Bunds in Germany fell by 1 bp, and 10-year-olds increased by 2 bp The spread between them was 204 bp Results of the trades in government bonds of Germany on the London Stock Exchange at 20:00 Moscow Time: Results of the trades government bonds: Results of the trades by the French government securities: On Friday, November 6, in Germany is expected to yield data on industrial orders (Factory Orders). According to analysts, the September index rose by 1,0% compared to August and fell by 13,6% year on year. In France, the figures will be released the balance of trade (Trade Balance), which is projected deficit in September, amounting to 3 billion euros. Department of analytical information RBC