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EUR Market Wrap

CREDIT PRE-MARKET


  • Bunds closed Friday +7bp across much of the curve to give 2y/10y WoW move of -1bp/-5bp with Friday’s move mostly coming on stronger-than-expected US labour data along with a smaller sell-off on stronger-than-expected EZ compensation data. Noting that French President Macron has called snapped legislative elections in the aftermath of the European Parliament election.
  • Main/XO ended the day -0.5bp/-2.5bp to give WoW moves of -1bp/-5bp while €IG/€HY was -0.5bp/-5bp DoD and +1.5bp/-25bp WoW. The IG curve flattened by nearly 3.5bp WoW (1-3yr vs. +10yr) while Cyclicals were the only sector to eke out a flat WoW level with Tech/Fins the worst performers at over +2bp.
  • SXXP closed the day flat to sit +1% higher WoW, broadly in line with SPX WoW and MoM. Notable €IG movers WoW include ASML +10%, Tritax Eurobox +9%, Edenred +8%, Oracle+7%, Nidec -11%, Siemens Energy -8%, GSK, -8%.
  • Asian equities are mixed with a wider regional index flat against numerous market closures. SX5E future are -0.8% and the EUR is lower against all G10 peers. Up today:

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