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EUR Market Wrap

CREDIT PRE-MARKET


  • Bunds closed 2-4bp tighter after the PM saw bunds move lower with USTs after the stronger-than-expected US Q2 GDP report, erasing most of the morning’s gains before paring the move but still ending lower than pre-data levels.
  • Main/XO ended +0.6bp/+2bp at 55bp/300bp while €IG/€HY was +0.8bp/+7bp. Primary was closed. Short-dated spreads underperformed the long-end though are broadly in line WoW (1-5yr spreads -30bp YTD, +10yr spreads -14bp). IG Cons Cycs underperformed on the day at +2.3bp and is now the second worst performing sector over the past 3m (underperforming €IG by 5bp vs. 6bp for utilities over 3m).
  • SXXP ended -0.7% with Media and Tech the worst performers near -3% while SPX was -0.5% to give WoW performance of -1% and -2.6% respectively. Notable €IG movers included RTX Cpr[ +8%, Harley-Davidson +7%, NASDAQ +7%, Lon\ Group +7%, Universal Music -25%, Ford -18%, LKQ -12%, Renault -7%, Kering -7%, Nissan -7%.
  • SX5E futures are +0.2% while SPX futures are +0.5%. US Treasury futures are little changed overnight, with investors awaiting today's data, in particular core PCE. Outside of the PCE inflation print we also have the U. of Mich. Sentiment later.

Date

GMT/Local

Impact

Country

Event

26/07/2024

0600/0800

**

SE

Unemployment

26/07/2024

0645/0845

**

FR

Consumer Sentiment

26/07/2024

0800/1000

**

IT

ISTAT Business Confidence

26/07/2024

0800/1000

**

IT

ISTAT Consumer Confidence

26/07/2024

0800/1000

**

EU

ECB Consumer Expectations Survey

26/07/2024

-

EU

ECB's Cipollone at Rio de Janeiro G20 Fin min/central bank meeting

26/07/2024

1230/0830

**

US

Personal Income and Consumption

26/07/2024

1400/1000

**

US

U. Mich. Survey of Consumers

26/07/2024

1500/1100

CA

Finance Dept monthly Fiscal Monitor (expected)

26/07/2024

1700/1300

**

US

Baker Hughes Rig Count Overview - Weekly

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