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EUR Market Wrap

CREDIT UPDATE


  • 2y/10y bunds are flat/-1bp with our DM team flagging limited spillover from the UK labour market data while the German February final HICP confirmed flash estimates, with improvements noted in MNI's inflation breadth indicator.
  • Main/XO are flat DoD while FICM shows €IG/€HY at -0.6bp/-0.5bp with Fins again outperforming at -1bp and Consumer Staples, Healthcare and Materials underperforming (marginally tighter).
  • Pretty low vol session so far with primary quiet ahead of CPI; corp movers include ELOFR (EUR 26s +14bps, downgraded to HY) Kion (EUR 25s +6bps, no news), Easyjet (EUR 28s +4bp, mandate announced), Leonardo (EUR 25s +4bp, new MT guidance), Moody’s (EUR 27s -4bp, no news), Berry Global (EUR 27s -5bp, no news), Nidec (EUR 26s -5bp, Siemens unit bid), Alpha Trains Finance (EUR 25s -5bp, no news), Anglo American (+3bps, going to market today).
  • Alex flagging that in financials that NBG reported solid results with asset quality improvements in Greece, echoing Eurobank last week.
  • SXXP is +0.3% with Banks and Basic Resources outperforming with gains of over 1% and Utilities the only sector in the red at -0.2%. Notable movers including BKW (+7.5% on earnings), Wacker Chemie (+6.5% on earnings), Leonardo (+5% on MT strategy), Persimmon (-3% on earnings).

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