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EUR Market Wrap

CREDIT PRE-MARKET
  • 2y/10y bunds closed +8bp/+5bp against supply in the morning and the higher-than-expected April flash core inflation reading which was followed by stronger-than-expected US Q1 ECI data provided the latest source of pressure to global core FI markets.
  • Main/XO are +1bp/+6bp, bringing the WoW move to -3bp/-8bp while €IG/€HY was -0.5bp/-8bp with short-dated €IG spreads again outperforming by ~1bp (-32bp YTD for 1-3yr vs. -16bp for +10yr. Energy again outperformed at -1.5bp; best performer MoM at -6bp vs. -2.5bp for the index.
  • SXXP was -0.7% to bring the WoW move to +0.5% with Personal Care and Basic Resources now over 4% higher WoW and Autos over 3% lower. Notable €IG movers in the European session include Stellantis -10%, Aliaxis +10%, Nissan +6%, Corning +5%, SES -8%, SCR Sibelco -8%.
  • Asian equities are broadly higher with Nikkei +1.1% though China/HK are closed today (China closed for rest of week). Stoxx 50 futures are flat. Up today:

Date

GMT/Local

Impact

Flag

Country

Event

01/05/2024

0830/0930

**

UK

S&P Global Manufacturing PMI (Final)

01/05/2024

0900/1000

**

UK

Gilt Outright Auction Result

01/05/2024

1100/0700

**

US

MBA Weekly Applications Index

01/05/2024

-

***

US

Domestic-Made Vehicle Sales

01/05/2024

1215/0815

***

US

ADP Employment Report

01/05/2024

1230/0830

***

US

Treasury Quarterly Refunding

01/05/2024

1345/0945

***

US

IHS Markit Manufacturing Index (final)

01/05/2024

1400/1000

***

US

ISM Manufacturing Index

01/05/2024

1400/1000

*

US

Construction Spending

01/05/2024

1400/1000

***

US

JOLTS jobs opening level

01/05/2024

1400/1000

***

US

JOLTS quits Rate

01/05/2024

1430/1030

**

US

DOE Weekly Crude Oil Stocks

01/05/2024

1800/1400

***

US

FOMC Statement

01/05/2024

2015/1615

CA

BOC Governor at Senate Banking Committee

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