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€IG cash is skewed firmly wider today, once again led by financials (& today Kering)

CREDIT UPDATE
  • €IG equities have held up better - now unch & finding support from Utilities (+1.1%).
  • Kering {KER FP Equity -13%} & Raiffeisen {RBI AV Equity -9%} are the worst performers - both echoed in credit spreads - while Equinix {EQIX US Equity -5%} is struggling more in euro credit (+20-40bps) than in equities or $ credit.
  • Lonza {LONN SW Equity +6.4%} best performer in €IG equities on a medium term earnings guidance boost driven by what' it sees as a accretive $1.2b ($1.8b including capex) cash acquisition of a Roche manufacturing facility.
  • £IG should close more flat today, saved by the absence of RBIAV & EQIX £ lines. Close brothers looks to be moving tighter for second session in a row (-5-10bps) after it guided to take action on bolstering its capital position.

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