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EUR Market Wrap

CREDIT PRE-MARKET
  • Bunds closed broadly flat in the absence of any major data releases and ahead of UK labour data today, US CPI tomorrow and Eurozone Final HICP on Friday.
  • Main/XO were flat/-2bp with XO now back to levels seen in early April and within 10bp of YTD lowest levels. €IG/€HY ended +1bp/+3bp with longer end spreads flat but short-dated +1.5bp with pretty-even performance across IG sectors.
  • SXXP closed +0.8% with Chemicals/Media/Real Estate failing to reverse early underperformance. Notable €IG movers in the European session included Maersk +8%, Alstom +5%.
  • Asia is mixed but broadly muted after the SPX finished flat – our Asia team earlier flagged Tech outperforming ahead of Alibaba and Tencent earnings. Up today:

GMT/Local

Impact

Country

Event

0600/0800

***

DE

HICP (f)

0600/0700

***

UK

Labour Market Survey

0700/0900

***

ES

HICP (f)

0700/0900

EU

ECB's De Guindos participates in ECOFIN meeting

0730/0830

UK

BOE's Pill Speech at Chartered Accountants Summit

0900/1100

***

DE

ZEW Current Conditions Index

0900/1100

***

DE

ZEW Current Expectations Index

0900/1000

*

UK

Index Linked Gilt Outright Auction Result

1000/0600

**

US

NFIB Small Business Optimism Index

1230/0830

***

US

PPI

1230/0830

**

CA

Wholesale Trade

1255/0855

**

US

Redbook Retail Sales Index

1310/0910

US

Fed Governor Lisa Cook

1315/1515

EU

ECB's Schnabel speech at scientific conference

1400/1000

US

Fed Chair Jerome Powell

1530/1130

**

US

US Treasury Auction Result for 52 Week Bill

1530/1130

*

US

US Treasury Auction Result for Cash Management Bill

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