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EUR Market Wrap

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  • Bunds ended 1-2bps tighter, moving back to pre-decision levels after drifting lower through the ECB Press Conference, as President Lagarde pushed back against questions on rate cut timing in a cautious stance that was broadly in line with expectations.
  • Main/XO ended -0.7/-3.7bp while €IG/€HY cash tightened 2.1bp/0.6bp with all major €IG sectors in the green and Sr bank bonds outperforming at -3bp.
  • SXXP ended +1% with gains of over 2% in Healthcare (Novo Nordisk reported promising weight loss drug test results) and Tech (broad-based and in line with US despite Teleperformance -23% as flagged). Other notable movers as flagged during the session include Virgin Money (+35%), Rentokil (+18%), ITV (+12%) and Telecom Italia (-24%).
  • Regional Asian equities are higher today and are on track to make it seven straight weeks of gains, tech stocks have been rallying again on dovish signals from the US Fed as well as optimism around the AI space. Stoxx 50 futures are +0.2%.
  • Up today we have:


GMT/Local

Impact

Country

Event

0700/0800

**

DE

Industrial Production

0700/0800

**

DE

PPI

0700/0800

**

SE

Private Sector Production m/m

0745/0845

*

FR

Foreign Trade

0800/0900

**

ES

Industrial Production

0900/1000

**

IT

PPI

1000/1100

***

EU

GDP (final)

1000/1100

*

EU

Employment

1200/0700

US

New York Fed's John Williams

1330/0830

***

CA

Labour Force Survey

1330/0830

***

US

Employment Report

1700/1200

***

US

USDA Crop Estimates - WASDE

1800/1300

**

US

Baker Hughes Rig Count Overview - Weekly

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