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EUR Market Wrap

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  • 2y/10y bunds closed -4bp/-1bp, moving wider through to midday before tightening as gilts continued to price in last week’s dovish BOE speak while comments from the ECB’s Centeno about a potential 100bp of 2024 rate cuts saw 2024 cut pricing move up 4bps to 78bps.
  • Main/XO closed -2bp/-9bp bringing the WoW move to flat while €IG/€HY tightened 1.5bp/2.2bp – short-dated €IG spreads underperformed while Cons Staples outperformed at close to -2bp.
  • SXXP closed +0.6% with Telcos +2% and Autos -0.7%. Notable €IG movers in the European session included Worldline +8%, Mobico -10%, Stellantis -5%.
  • Broader Asian index is flat with Hang Seng +1.6% and CSI 300 -0.7% after the SPX snapped a downward run led higher by Nvidia. Stoxx 50 futures are +0.5% ahead of the open.

GMT/Local

Impact

Country

Event

0600/0700

***

UK

Public Sector Finances

0715/0915

**

FR

S&P Global Services PMI (p)

0715/0915

**

FR

S&P Global Manufacturing PMI (p)

0730/0930

**

DE

S&P Global Services PMI (p)

0730/0930

**

DE

S&P Global Manufacturing PMI (p)

0800/1000

**

EU

S&P Global Services PMI (p)

0800/1000

**

EU

S&P Global Manufacturing PMI (p)

0800/1000

**

EU

S&P Global Composite PMI (p)

0800/0900

UK

BOE's Haskel Panelist at Econometric Seminar

0830/0930

***

UK

S&P Global Manufacturing PMI flash

0830/0930

***

UK

S&P Global Services PMI flash

0830/0930

***

UK

S&P Global Composite PMI flash

1115/1215

UK

BOE's Pill Speech at University of Chicago

1230/0830

**

US

Philadelphia Fed Nonmanufacturing Index

1255/0855

**

US

Redbook Retail Sales Index

1345/0945

***

US

IHS Markit Manufacturing Index (flash)

1345/0945

***

US

S&P Global Services Index (flash)

1400/1000

***

US

New Home Sales

1400/1000

**

US

Richmond Fed Survey

1530/1130

*

US

US Treasury Auction Result for Cash Management Bill

1700/1300

*

US

US Treasury Auction Result for 2 Year Note

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