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EUR Market Wrap

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  • Bunds closed 11-13bp tighter to give WoW moves for 2y/10y bunds of -32bp/-26bp after a renewed risk-off tone in markets as French political uncertainty continued to dominate. OATs/BTPs widened 7bp/11bp vs. 10y bunds to give WoW moves of +28bp/+23bp.
  • Main/XO ended +7bp/+26bp at 64bp/332bp to give a WoW move of +13bp/+42bp while €IG/€HY was +9bp/+24bp with longer dated IG spreads outperforming on the day and Financials taking the brunt of the move wider at +11bp while Capital Goods outperformed at +6bp. WoW cash moves stand at +13bp/+50bp with Fins/Energy underperforming at +16bp/+17bp while Capital Goods widened just 8bp.
  • SXXP closed -1% with just Food & Bev, Health and Personal Care sub-indices not closing lower. WoW the index was just over 2% lower compared to +1.6% for SPX. Notable €IG movers on the week included KKR +11%, Oracle +10%, Apple +8%, DXC +8%, Naturgy -15%, SocGen -15%, Worldline -15%, Eiffage -15%.
  • Asian equities are lower were weaker in the region today on concerns around French political uncertainty. China data was mixed with retail sales beating estimates, while industrial production missed estimates. Stoxx 50 futures are -0.4%. Up today:

GMT/Local

Impact

Country

Event

0800/1000

**

IT

Italy Final HICP

0800/1000

EU

ECB's Lane at Reuters event

0900/1100

EU

ECB's Lagarde at company Pasqal

1130/1330

EU

ECB's De Guindos remarks at APIE Seminar

1200/1400

EU

ECB's Cipollone chairing financial markets supervision session

1215/0815

**

CA

CMHC Housing Starts

1230/0830

*

CA

International Canadian Transaction in Securities

1230/0830

**

US

Empire State Manufacturing Survey

1300/0900

*

CA

CREA Existing Home Sales

1530/1130

*

US

US Treasury Auction Result for 26 Week Bill

1530/1130

*

US

US Treasury Auction Result for 13 Week Bill

1700/1300

US

Philadelphia Fed's Patrick Harker

1700/1300

*

US

US Treasury Auction Result for Cash Manageme

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