CREDIT PRE-MARKET: European Credit Opening Wrap

•    EGBs: rates ended the day little changed, a sharp rally in the morning session was rapidly given back after EU CPI came in line with expectations. Treasuries were slightly better on mildly dovish comments from Powell in Sintra which held despite higher-than-expected JOLTS. Today is a busy US data session (MBA, ADP, FOMC minutes, amongst others). Asian rates were relatively mixed overnight.
•    Cash credit: €IG closed 1-2bp tighter whilst €IG widened around 5bp. Primary was relatively limited, as we’ve now entered close period for many issuers, but the pipeline in HY still looks relatively robust. MCGLN 31s continue their bounce, another 10bp tighter today. ARNDTN was up to 8bp tighter following subsidiary GYCGR’s issuance.
•    CDS: Main/XO were both a little tighter yesterday with a rally after the US open to end the day -1bp/-2bp
•    Equities: SXXP was 0.4% lower and Monday’s strength failed to follow on. Financials were weakest with Hurricane Beryl not helping the insurers, energy and tech were the leaders. Pluxee rallied ahead of this morning’s reporting. Tech stocks led a small Asian equity rally through the night.