Archive

Daily Archives: 2nd July 2018

2nd July 2018

It’s like Chinese water torture

MARKET CLOSE:
iTraxx Main

75.3bp, -+2bp

iTraxx X-Over

326.9bp, +7.9bp

🇩🇪 10 Yr Bund

0.31%, unchanged

iBoxx Corp IG

B+138.1bp, +1.5bp

iBoxx Corp HY

B+423bp, +6bp

🇺🇸 10 Yr US T-Bond

2.86%, unchanged

🇬🇧 FTSE 100

,
🇩🇪 DAX

,
🇺🇸 S&P 500

,

Drip, drip, drip…

It’s not quite how we would have wanted it, but we’re off to a weaker start to the second half of the year. Global trade war worries top the list with Trump tweeting over the weekend about the EU being ‘as bad” on trade with the US as China is and all sounding extremely ominous. However, we also have a political crisis brewing in Germany although a government reshuffle no matter how bad wouldn’t necessarily lead to any additional material economic decline. The uncertainty is what rankles with the markets. As a result they are in no mood to turn the page into some kind of new, fresh brighter outlook; We followed with sharply lower in stocks (but only at the open) after Asia markets lost 2% or more.

Continue reading