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Daily Archives: 7th August 2018

7th August 2018

Trading through a minefield

MARKET CLOSE:
iTraxx Main

63.5bp, -1.5bp

iTraxx X-Over

291.8bp, -4.9bp

🇩🇪 10 Yr Bund

0.41%, +2bp

iBoxx Corp IG

B+125bp, -1bp

iBoxx Corp HY

B+380bp, -3bp

🇺🇸 10 Yr US T-Bond

2.96%, +2bp

🇬🇧 FTSE 100

6144.25, ERROR
🇩🇪 DAX

11657.69, +153.04
🇺🇸 S&P 500

3036.13, ERROR

Trade wars to stifle rally…

Sino-US trade tensions show no sign of letting up – with the former looking to dig in for the long term. We are, in fact, seeing the rhetoric ramped up some with China readying tit-for-tat measures in retaliation of the threatened increase and broadening in tariffs on Chinese goods.

It ought to be putting a cap on the ability for the markets to rally, but it looks as if the markets do want to push higher. The S&P500/Nasdaq are a percentage point or two away from setting new record highs, for example. With that, credit spreads have been edging tighter for the most part while new supply has now stopped dead in its tracks as the holiday mood sets in.

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