Strong move tighter in Euro credit as dollar credit resumed its move tighter

€IG is skewed firmly tighter this morning despite equities equivalents that are -0.3%. Quiet primary & a strong -2/-4bp move yesterday in $IG/HY may be helping sentiment today. $'s reversed any underperformance over the last couple of sessions after yesterday's moves & leaves IG spreads 30bps below pre-covid avg's, index yields still flat & +25bps YTD providing the support - bbg earlier reporting P&G's 10y that priced at +37 was the tightest 10y to price in primary.

* Nokia is leading in equity eqv's - its Euro lines (Ba1, BBB-,BBB-; S) unch-to-tighter after guiding above expectations to FY24 operating profit between €2.3b-2.9b and FCF conversion between 30-60% - analyst were expecting €2.4b (bbg). Worth noting mng. also announced a €600m 2yr share buyback program & FY24 guidance positivity is 2H focused (still sees a "challenging first half"). Equal rated (S&P on Develop outlook) comp. Ericcson disappointed on earnings earlier this week - still ~40bp pickup for Ericcson's 28's - a spread that's narrowed from peak ~60bps earlier this year after tailwinds including AT&T choosing Ericson for a $14b/5yr deal for 5G equipment.

* We get weekly shipping rates that may take more focus especially locally after mentions in UK's PMI report of cost pressures - late yesterday Maersk reported 2 of its ships carrying US defence cargo and escorted by the US navy were attacked; "Iranian-backed Houthi terrorists fired three anti-ship ballistic missiles from Houthi-controlled areas of Yemen". Missiles were shot down and though the Bab el-Mandeb Strait is not travelled by the majors now, vessels carrying cargo belonging to DoD are afforded projection by the US navy - Maersk has now suspended those lines as well from travelling through the strait. Local belly breaks are little changed (moving in line with nominals this morning).