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Daily Archives: 14th October 2019

14th October 2019

False start

MARKET CLOSE:
iTraxx Main

55.2bp, +1.4bp

iTraxx X-Over

244.2bp, +4.5bp

🇩🇪 10 Yr Bund

-0.47%, -3bp

iBoxx Corp IG

B+122.5bp, unchanged

iBoxx Corp HY

B+413.5bp, -1bp

🇺🇸 10 Yr US T-Bond

1.73%, unchanged

🇬🇧 FTSE 100

6154.34, ERROR
🇩🇪 DAX

12946.89, (+2.04%)
🇺🇸 S&P 500

3333.69, (+0.54%)

Fragile trade truce get us off to a weak start…

It looks like markets had gotten ahead of themselves. The hopes of a Brexit deal are looking more precarious again, with the EU once again reportedly playing hardball. The potential for a US/China ‘limited’ trade deal has underwhelmed so far, but at least we might have something which might help calm the tensions.

But the Middle East is where the real event risk is right now, as the Syrian army (backed by Russia) has lined up with the Kurdish administration to help stem the Turkish advances into northern Syria. The reaction: Gilts gained a good bid (10-year, -9bp in yield at one stage) as sterling lost ground (Brexit-related) and equities were lower amid nervousness on all three of the aforementioned developing situations, as we unwound some of last week’s stellar gains.

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