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EUR Market Wrap

CREDIT UPDATE
  • Bunds are 4-6bps cheaper across the curve – our DM team earlier flagged yesterday’s weakness in USTs and firmer-than-expected Australian CPI data while slightly firmer-than-expected German IFO data also factored in.
  • Main/XO are flat/+3bp while FICM shows €IG/€HY at -0.5bp/-3bp with all €IG sectors in the green with Comms lagging slightly while Fins are performing well. Primary recap to follow.
  • €IG movers include Enel (some lines wider, some tighter on SLB step-ups), Thames (up to 8bps tighter), Kering (up to 10bps wider on earnings), Heimstaden (up to 9bps tighter on earnings), Aareal (up to 6bps tighter).
  • SXXP is +0.2% with gains of ~2% in Tech and Basic Resources offsetting losses in a few sectors with Real Estate -0.9%. €IG movers include CPI Property +8%, Storebrand +8%, Atlas Copco + 7%, Infineon +6%, Svenska Handelsbanken -12%, Argan -8%, Kering -8%, Eurofins -6%.

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