By Gustav Sandstrom
TODAY'S CALENDAR - All times GMT
Nordic Macro
0800 Norway July CPI
0800 Norway Oil Fund 2Q
Other Macro
0530 China July industrial
production
0530 China July retail sales
0645 France June retail sales
Nordic Equities
0500 Nokian Tyres 2Q
0500 Stockmann 2Q
0600 Novozymes 2Q
0600 Finnair July traffic
n/a HKScan 2Q
n/a Reservoir Exploration
Technology 2Q
IN FOCUS:
Nordic investors will focus Friday on macroeconomic indicators
from China as quarterly earnings reports from a range of local
companies.
China's consumer price index held steady at a rise of 2.7% on
the year in July, unchanged from the previous month and just below
the 2.8% rise forecast by economists. Inflation still looks
nonthreatening and remains well inside the government's target of
keeping yearly price increases to 3.5% or less. The producer price
index, which tracks wholesale prices, remained in deflationary
territory although price declines eased a little, with the PPI down
2.3% on the year compared with June's 2.7% decline.
Still to come are Chinese industrial production, retail sales
and investment data.
Among the Nordic companies reporting second-quarter earnings
Friday, local investors will keep a close eye on Danish index
heavyweight Novozymes A/S's (NZYM-B.KO) results.
Analysts expect the enzyme maker to report a higher net profit
on the year thanks to emerging markets sales growth in its
detergent segment as well as growth in the U.S. bioenergy
business.
FOREX:
EUR/NOK
Latest 0350 GMT 7.8971-9160
Previous 2150 GMT 7.9039-133
%Chg -0.03
EUR/SEK
Latest 0350 GMT 8.6805-86
Previous 2150 GMT 8.6806-915
%Chg -0.02
USD/NOK
Latest 0350 GMT 5.9027-160
Previous 2150 GMT 5.9072-133
%Chg -0.02
USD/SEK
Latest 0350 GMT 6.4883-934
Previous 2150 GMT 6.4876-951
%Chg -0.01
NORDIC CURRENCIES:
After a slower week in terms of macro data, Friday sees the
week's macro highlight for NOK investors--Norwegian CPI data.
Economists polled by Dow Jones Newswires said they expect
CPI-ATE, a measure of core inflation, at 1.2% in July, down from
1.4% in June.
Magne Ostnor, currency analyst at DNB, said that a surprise on
the upside would likely have a more pronounced impact on trading.
This is because a higher rate of inflation coupled with last week's
stronger-than-expected unemployment data will have investors
re-evaluating the likelihood of a rate cut by Norges Bank in
September. The central bank's message in June was more dovish,
saying the likelihood of a cut in September was 50/50. Mr. Ostner
sees inflation just below but still in line with consensus.
Danske Bank also noted that investors should be on extra alert
this Friday--"Norwegian core inflation has a long history of
surprising the market so as always watch out," it said.
SEK watchers have the release of Swedish unemployment data to
look forward to, but Friday's number only covers those unemployed
registered at Sweden's job office. SEB notes registered
unemployment is trending sideways but they expect a slightly lower
seasonally adjusted rate in July.
STOCK INDEXES:
OMXN40 1,174.36 +9.59 +0.8%
OMXS30 1,248.23 +7.82 +0.6%
OBX 460.57 +4.92 +1.1%
OMXC20 602.92 +3.62 +0.6%
OMXH25 2,395.83 +30.26 +1.3%
Brent $107.07 +$0.39 +0.37%
NORDIC MARKETS:
Trading on the Nordic exchanges has been hesitant of late, and
the near-term trend is likely to be somewhat negative following the
strong upturn earlier this summer, Nordea equity strategist Mattias
Eriksson said.
Still, despite their rich valuations, there should be remaining
upside potential in some cyclical stocks, at least in the long
term, Mr. Eriksson said.
Sweden's large engineering companies could see further gains
provided their earnings development and the wider economy move in
the right direction, and Nordic bank stocks could also continue
edging higher, he added.
ENERGY:
Oil prices are higher in Asian trade after China posted
lower-than-expected inflation and as traders await a flurry of
other data from the world's second-biggest economy including
industrial output.
New York's main contract, West Texas Intermediate for delivery
in September, is up 85 cents at $104.25 a barrel, while Brent North
Sea crude for September delivery is 39 cents higher at $107.07.
Traders are also eyeing industrial output and retail sales
figures from China due for release later in the day.
"There have not been really significant moves but there has been
a bit of trader positioning in advance of the numbers," Ric
Spooner, chief market analyst at CMC Markets in Sydney, said.
"We could see some ongoing upward momentum in commodities and
risks" if Chinese industrial numbers are better than expected, he
said.
NEWS ROUNDUP:
DENMARK: Pharmaceutical company Novo Nordisk A/S (NOVO-B.KO)
Thursday lifted its full-year guidance after reporting a
forecast-beating 26% rise in second-quarter net profit, helped by
strong growth of Type 2 diabetes drug Victoza.
SWEDEN: Measurement technology company Hexagon AB (HEXA-B.SK)
Thursday posted an increase in second-quarter net profit and said
it expects cash flow in the second half of 2013 to be stronger,
opening up the possibility for expansion.
FINLAND: Steel maker Rautaruukki Oyj (RTRKS.HE) Thursday posted
an unexpected net loss for the second quarter as overcapacity and
weaker steel prices weighed, but said it still expects to meet its
financial targets for 2013 despite sluggish demand.
FINLAND: Construction company Lemminkainen Oyj (LEM1S.HE)
Thursday said it swung to a net loss in the second quarter and said
it would speed up and widen the implementation of efficiency
measures.
NORWAY: Maritime industrial company Wilhem Wilhemsen Holding ASA
(WWI.OS) Thursday posted a rise in second-quarter net profit,
boosted by interest rate derivatives and a currency gain, and said
it expects shipping volumes to remain at present levels in the near
term.
NORWAY: Offshore engineering group DOF ASA (DOF.OS) Thursday
said that Petrobras (PBR) has extended the contract for the Skandi
Vitoria vessel by two years from Sep. 2013.
Write to Gustav Sandstrom at gustav.sandstrom@dowjones.com
(Johannes Ledel in Stockholm contributed to this report.)