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EUROPEAN WRAP: Stocks, Pound Decline; Gold Gains on U.S. Data

January 30, 2013

European stocks fell from a 23-month high as the U.S. economy unexpectedly shrank in the fourth quarter. The pound weakened to a 13-month low against the euro after EU economic confidence improved. Gold prices rose the most in two weeks. Italy’s borrowing costs slipped to 2-year Low at 10-year sale.

*S&P 500 down 0.1% to 1,507.10 *Stoxx 600 down 0.58% to 288.63 *US 10Yr yield up 2bps to 2.02% *German 10Yr yield up 3bps to 1.72% *MSCI Asia Pacific up 0.61% to 133.3

TOP EUROPE: *Euro-Area Economic Confidence Rises More Than Forecast *Euro Strengthens Above $1.35 as Economic Confidence Jumps *Deutsche Bank Seen Missing Goldman-Led Gains as Costs Rise *Saipem Plunges by Record in Milan After Cutting Profit Outlook *Gilts Fall as Mortgage Approvals Rise; Pound Weakens Vs Euro *Writedowns Near $50b as M&A Haunts Mine CEOs: Commodities *Draghi’s Bank of Italy Spotted Monte Paschi Missteps in 2010 *ECB Squeeze Drives Buyers to 15-Year Italian Debt: Euro Credit

SELECTED ECONOMIC DATA: *EU Jan. Economic Confidence 89.2 vs est. 88.2 vs revised 87.8 *EU Jan. Consumer Confidence -23.9 vs est. -23.9 vs prior -23.9 *UK Dec. Mortgage Approvals 55.8k vs est. 54.5k vs prior 54.0k *Spain 4Q Y/y adj. GDP -1.8% vs est. -1.7% vs prior -1.6%

EUROPE *19/19 sectors fell, led oil & gas, basic resources *Eurostoxx 50 -0.62%, FTSE 100 -0.25%, CAC 40 -0.54%, DAX -0.47%, IBEX -0.82%, FTSEMIB -3.36%, SMI -0.94% *Movers on earnings/statements: Saipem -34.29% , Antofagasta -8.31% , Ferrexpo -5.48% , Renishaw-5.1% , Fiat -4.83% , Imperial Tobacco Group -4.26% , Johnson Matthey -4.24% , Coloplast -3.86% , Scania -2.53% , BNP -2.2% , Credit Agricole SA -2.12% , Kenmare Resources PLC -1.87% , Societe Generale -1.68% , STMicroelectronics -1.68% , Roche -1.39% , E.ON -1.04%, Hennes & Mauritz AB +0.47% , Unibail-Rodamco +0.89% , SKF +1.16% , GFK +2.56% , Nordea Bank +3.17% , CAT Oil +4.25%, Zooplus AG +6.47% , QIAGEN +6.46% , NCC +7.52% , Swedbank +10.45%

*Other gainers: Imagination Technologies +12.77% , NCC +7.45% , Neste Oil OYJ +7.41% , QIAGEN NV +6.82% , JM AB +5.35% , Elan Corp PLC +4.97% , SEB +4.63% , Oriflame Cosmetics SA +3.73%

*Other decliners: Banca Monte dei Paschi di Sien -9.46% , Technip -7.08% , Petrofac -7.02% , SBM Offshore -5.8% , Alcatel-Lucent/France -5.44% , Bankia -5.01% , Eni -4.71%

EUROPEAN M&A: *UPS Responds to Formal EU Decision to Block TNT Deal *Subdued M&A Activity Expected in Mining in 2013, JPMorgan Says *Ipsen May Seek Acquisitions, Partnerships in U.S., CEO Says

FX/BONDS *Euro up 0.62% to $1.3575 *Dollar Index down 0.39% to 79.26 *Italian 10Yr yield up 13bps to 4.3% *Spanish 10Yr yield up 6bps to 5.22% *3m Euribor/OIS down 2bps to 10bps

COMMODITIES *S&P GSCI Index up 0.54% to 674.13 *Brent Futures up 0.25% to $114.65/bbl, WTI Futures up 0.05% to $97.62/bbl *Gold spot up 1.06% to $1681.45/oz *LME 3m Copper up 1.52% to $8226.5/MT *LME 3m Nickel up 2.46% to $18290/MT *Wheat futures up 0.8% to 783.25 USd/bu

ASIA *Nikkei 225 up 2.28% to 11113.95 *Hang Seng up 0.71% to 23822.06 *Kospi up 0.43% to 1964.43 *Shanghai Composite up 1% to 2382.48

WHAT TO WATCH TOMORROW *Germany Jan. inflation *ECB’s Constancio, Liikanen speak in Brussels *Sweden sells 10-year linker *Earnings from: Deutsche Bank, Ericsson, Shell, Diageo, AstraZeneca, BSkyB, Novo Nordisk, Banco Santander, LVMH

To contact the reporter on this story: Roger Neill in London at rneill3@bloomberg.net

To contact the editor responsible for this story: James Ludden at jludden@bloomberg.net


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