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EUR Market Wrap

CREDIT UPDATE


  • Bunds are 2-4bps tighter – our DM team flagging a fourth day of gains on morning tailwinds from BoE Governor Bailey noting rate cuts are "in play" while both UK retail sales and the German IFO survey came in above expectations but the reaction in Bunds was limited.
  • Main/XO are +1.5bp/+9bp with CDX IG/HY moving wider at the open. FICM showing €IG/€HY cash as flat/+5bp with Altice and Intrum driving the €HY move while €IG performance is broad-based.
  • €IG curve movers include CPI Property (5-8bps wider, rallied yest on subsidiary equity investment from Apollo), Citycon (up to 6bps wider, no news), Equinix (up to 7bps wider, recently pulled deal), Emirates Telecomm (2-4bps wider, no news), Getlink (up to 5bps tighter, no news), Norsk Hydro (up to 4bps tighter, no news).
  • SXXP is flat with Tech -1.1% (looks broad-based, antitrust sentiment potentially feeding in) and Consumer Products and Services -1% (Nike warned of a sales squeeze). Movers include Phoenix Group +10%, Dino Polska, -8%, Grifols -8%.

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