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EUR Market Wrap

CREDIT PRE-MARKET


  • Bunds closed 2-3bp tighter – our DM team flagged that a little more clarity around additional issuance burdens in the 2024 German supplementary budget may have helped drive the afternoon rebound in Bunds. Notable macro news flow was otherwise light, with fiscal-centric comments from EU economy minister Gentiloni and German finance minister Lindner adding little new to the debate.
  • Main/XO ended flat/+2bp at 51bp/284bp while €IG/€HY was +1bp/+2bp to give a WoW move of +2bp/+5bp with Utils lagging in IG at +2bp, joining Cyclical and Staples as the worst WoW performers at over 3bp wider though Capital Goods remains the worst MoM performer at -6bp compared to -31bp for the index.
  • SXXP ended -1.0% with all sectors in the red while SPX was +0.3%. Notable €IG movers included Capital One Financials +4%, KKR +4%, Kojamo -10%, Vestas Wind -6%, Kering -5%, Siemens -5%.
  • SX5E futures are -0.3% while SPX is +0.2% while China & Hong Kong's equity markets are mixed again today, with stocks in Hong Kong, particularly those linked to China's economy, facing declines amid concerns over economic growth prospects. Later the Fed’s Kugler speaks. There are US June retail sales, trade prices and July NAHB housing, as well as June Canadian CPI and euro area July ZEW data.

GMT/Local

Impact

Country

Event

0700/0900

EU

ECB's De Guindos in ECONFIN meeting

0800/1000

**

EU

ECB Bank Lending Survey

0800/1000

**

IT

Italy Final HICP

0900/1100

***

DE

ZEW Current Conditions Index

0900/1100

***

DE

ZEW Current Expectations Index

0900/1100

*

EU

Trade Balance

0900/1000

**

UK

Gilt Outright Auction Result

1215/0815

**

CA

CMHC Housing Starts

1230/0830

**

US

Import/Export Price Index

1230/0830

***

CA

CPI

1230/0830

***

US

Retail Sales

1255/0855

**

US

Redbook Retail Sales Index

1400/1000

*

US

Business Inventories

1400/1000

**

US

NAHB Home Builder Index

1530/1130

*

US

US Treasury Auction Result for Cash Management Bill

1845/1445

US

Fed Governor Adriana Kugler

2245/1045

***

NZ

CPI inflation quarterly

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