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EUR Market Wrap

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  • Bunds ground wider over much of the session, yields driven higher following the morning's higher-than-expected Spanish inflation data and stronger than expected flash GDP figures in Spain, Italy and the Eurozone. Yields ticked wider again after the higher-than-expected US JOLTS job openings
  • Main/XO ended flat/-1bp, outperforming US equivalents by 0.6/5.3bp. €IG/€HY cash outperformed against a day of lower supply with spreads tightening by 0.8bp/3.5bp. BB bonds again underperformed while energy and tobacco bonds were the biggest DoD movers within €IG, tightening by over 2bp.
  • SXXP ended +0.2% with larger caps and cyclicals outperforming. Gains in Banks (+1.3%, led by BBVA as flagged), Autos (+1.1%, driven by the GM beat) and Retail (+1.1%, broad-based) were offset by losses in TelCos (-1.1%, led lower by Tele2 who beat on sales/EBITDAal though CapEx guidance raised questions).
  • HK/China equities are lower again today, market sentiment is still poor following the ordered liquidation of China Evergrande, while China data isn't helping with the manufacturing PMI missing slightly, and a lack of details surrounding the market-stabilization program announced last week. SXXP futures are flat DoD.
  • Up today we have:

Time C Event

07:00 GE Import Price Index

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  • Bunds ground wider over much of the session, yields driven higher following the morning's higher-than-expected Spanish inflation data and stronger than expected flash GDP figures in Spain, Italy and the Eurozone. Yields ticked wider again after the higher-than-expected US JOLTS job openings
  • Main/XO ended flat/-1bp, outperforming US equivalents by 0.6/5.3bp. €IG/€HY cash outperformed against a day of lower supply with spreads tightening by 0.8bp/3.5bp. BB bonds again underperformed while energy and tobacco bonds were the biggest DoD movers within €IG, tightening by over 2bp.
  • SXXP ended +0.2% with larger caps and cyclicals outperforming. Gains in Banks (+1.3%, led by BBVA as flagged), Autos (+1.1%, driven by the GM beat) and Retail (+1.1%, broad-based) were offset by losses in TelCos (-1.1%, led lower by Tele2 who beat on sales/EBITDAal though CapEx guidance raised questions).
  • HK/China equities are lower again today, market sentiment is still poor following the ordered liquidation of China Evergrande, while China data isn't helping with the manufacturing PMI missing slightly, and a lack of details surrounding the market-stabilization program announced last week. SXXP futures are flat DoD.
  • Up today we have:

Time C Event

07:00 GE Import Price Index

Keep reading...Show less