Free Trial

EUR Market Wrap

CREDIT PRE-MARKET
  • Bunds ended Friday 3-6bps tighter, initially opening tighter on a lack of hawkish offerings from the BoJ governor while slightly lower Euro area inflation expectations did little to reverse the bridge before another move tighter in the PM in line with USTs in the wake of dovishly-received US PCE. WoW bunds widened by 6-9bps.
  • Main/XO closed -2/-11bp to bring the WoW move to -5bp/-20bp compared to -6bp/-25 for CDX IG/HY. €IG/€HY closed flat/+1bp to give WoW moves of -4bp/-5bp with the short-end outperforming in €IG by ~1bp. Financials were the biggest WoW tightener at -5bp with all sectors now tighter MoM except Utilities (broadly flat on the month vs. -3bp for €IG).
  • SXXP closed +1.1% on Friday bringing the WoW move to +1.7% (in line with SPX). Chemicals and Autos were the only SXXP sectors in the red on the week at just over -2% and -1% each.
  • Asian equities are mixed but broadly higher with CSI 300 & HSI ~3% higher as the property sector surged after CIFI holdings announced an agreement with bondholders regarding offshore liquidity. Stoxx 50 futures are +1.6%. Up today:

GMT/Local

Impact

Country

Event

0600/0800

**

SE

Retail Sales

0700/0900

***

ES

HICP (p)

0800/1000

***

DE

North Rhine Westphalia CPI

0800/1000

***

DE

Bavaria CPI

0900/1100

**

EU

EZ Economic Sentiment Indicator

0900/1100

*

EU

Consumer Confidence, Industrial Sentiment

1200/1400

***

DE

HICP (p)

1430/1030

**

US

Dallas Fed manufacturing survey

1530/1130

*

US

US Treasury Auction Result for 13 Week Bill

1530/1130

*

US

US Treasury Auction Result for 26 Week Bill

1920/2120

EU

ECB's De Guindos remarks at Euro50Group Dinner

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.