August 20, 2024 06:02 GMT
EUR Market Wrap
CREDIT PRE-MARKET
- Bunds closed flat against low volumes, quiet macro and limited news flow. OIS markets currently pricing 66bp of cuts this year with full cuts priced for Sept and Dec and a half cut priced for Oct. August flash PMIs and ECB Q2 negotiated wages (both Thursday) will provide the next major regional cues for markets in weighing the likely pace of the ECB’s easing cycle.
- Main/XO ended -0.9bp/-3bp at 53.1bp/291bp while €IG was flat (Corps -0.1bp, Fins +0.2bp) and €HY was -2bp. Performance was broad-based in IG corps; Utils the only corps sector tighter MoM at -1.1bp vs. +6.8bp for €IG. $IG was -0.3bp (Corps -0.2bp, Fins -0.5bp), brining 3m underperformance to -2.7bp/flat.
- SXXP ended +0.6% while SPX was +1% for WoW moves of close to +5%/+3%. €I movers include CK Hutchison +5%, Toyota -3%, NN Group -3%.
- SX5E/SPX futures are flat. US Treasury futures have been largely rangebound overnight, volumes have been slightly below average. The RBA reiterated that rates are likely to remain on hold for an extended period.
- Later the Fed’s Bostic and Barr speak, and the August Philly Fed non-manufacturing index is released. Final July euro area CPI and Q2 negotiated wages as well as Canada’s July CPI print.
Date | GMT/Local | Impact | Flag | Country | Event |
20/08/2024 | 0600/0800 | ** | ![]() | DE | PPI |
20/08/2024 | 0730/0930 | *** | ![]() | SE | Riksbank Interest Rate Decison |
20/08/2024 | 0800/1000 | ** | ![]() | EU | EZ Current Account |
20/08/2024 | 0900/1100 | *** | ![]() | EU | HICP (f) |
20/08/2024 | 0900/1100 | ** | ![]() | EU | Construction Production |
20/08/2024 | 1100/0700 | *** | ![]() | TR | Turkey Benchmark Rate |
20/08/2024 | 1230/0830 | *** | ![]() | CA | CPI |
20/08/2024 | 1230/0830 | ** | ![]() | US | Philadelphia Fed Nonmanufacturing Index |
20/08/2024 | 1255/0855 | ** | ![]() | US | Redbook Retail Sales Index |
20/08/2024 | 1530/1130 | * | ![]() | US | US Treasury Auction Result for Cash Management Bill |
20/08/2024 | 1845/1445 | ![]() | US | Fed Governor Michael Barr |
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