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EUR Market Wrap

CREDIT PRE-MARKET
  • Not much to report in terms of moves given the market closures yesterday.
  • We saw a less hawkish than feared message from Fed Chair Powell and the FOMC. A “Higher for Longer” message was delivered but the market focused on Powell’s comment in the press conference that "I think it's unlikely that the next policy rate move will be a hike".
  • Main/XO closed +1/+6bp, bringing the WoW move to +1/+11bp, an underperformance on the week of ~1bp/5bp vs. CDX.
  • SPX finished -0.34% with notable €IG movers including Amcor +10%, Pfizer +6%, Equitable Holdings +5%, J&J +5%, Global Payments –11%, Johnson Controls -7%, Kraft Heinz -6%, Dell -5%.
  • Asian equities are broadly higher on the FOMC tone with the Hang Seng up over 2% while China remains closed. SX5E futures are -0.1%. Up today:

    GMT/Local Impact Country Event
    0630/0830 *** CH CPI
    0630/0830 ** CH Retail Sales
    0715/0915 ** ES S&P Global Manufacturing PMI (f)
    0745/0945 ** IT S&P Global Manufacturing PMI (f)
    0750/0950 ** FR S&P Global Manufacturing PMI (f)
    0755/0955 ** DE S&P Global Manufacturing PMI (f)
    0800/1000 ** IT PPI
    0800/1000 ** EU S&P Global Manufacturing PMI (f)
    1230/0830 *** US Jobless Claims
    1230/0830 ** US WASDE Weekly Import/Export
    1230/0830 ** US Trade Balance
    1230/0830 ** US Preliminary Non-Farm Productivity
    1230/0830 ** CA International Merchandise Trade (Trade Balance)
    1245/0845 CA BOC's Macklem appears at House finance committee.
    1400/1000 ** US Factory New Orders
    1430/1030 ** US Natural Gas Stocks
    1530/1130 ** US US Bill 04 Week Treasury Auction Result
    1530/1130 * US US Bill 08 Week Treasury Auction Result
    2015/2215 EU ECB's Lane lecture at University of Stanford

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