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EUR Market Wrap

CREDIT PRE-MARKET
  • Bunds closed 3-4bps cheaper after a steady grind wider from mid-morning onwards with yields spiking higher before reversing in the wake of the US PPI which showed a beat on first reading but closer examination revealed less core PCE readthrough.
  • Main/XO were flat/+2bp while €IG/€HY were flat/+1bp despite the high supply with short-dated €IG spreads outperforming by ~1bp (1-3yr now -30bp YTD vs .-15bp for +10yr). Basic Ind underperformed slightly.
  • SXXP was flat with Autos the biggest mover at +3%. Notable €IG movers in the European session included Svitzer +12%, Depfa +10%, Brenntag -8%.
  • Asian equities are flat and mixed with mainland China underperforming slightly as Tencent beat and an Alibaba buyback failed to offset a drop in income while US tariffs have done little to help. Stoxx 50 +0.3%. Up today:

GMT/Local

Impact

Country

Event

0600/0800

***

SE

Inflation Report

0645/0845

***

FR

HICP (f)

0900/1100

**

EU

Industrial Production

0900/1100

***

EU

GDP (p)

1100/0700

**

US

MBA Weekly Applications Index

1215/0815

**

CA

CMHC Housing Starts

1230/0830

***

US

CPI

1230/0830

**

CA

Monthly Survey of Manufacturing

1230/0830

***

US

Retail Sales

1230/0830

**

US

Empire State Manufacturing Survey

1300/0900

*

CA

CREA Existing Home Sales

1400/1000

*

US

Business Inventories

1400/1000

**

US

NAHB Home Builder Index

1400/1000

US

Fed Vice Chair Michael Barr

1405/1505

UK

Bernanke Review of Bank of England Forecasting

1430/1030

**

US

DOE Weekly Crude Oil Stocks

1600/1200

US

Minneapolis Fed's Neel Kashkari

1920/1520

US

Fed Governor Michelle Bowman

2000/1600

**

US

TICS

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