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Daily Archives: 5th November 2019

5th November 2019

Risk markets rediscovering appetite

MARKET CLOSE:
iTraxx Main

48.7bp, -0.6bp

iTraxx X-Over

227.3bp, +0.6bp

🇩🇪 10 Yr Bund

-0.32%, +3bp

iBoxx Corp IG

B+109.5bp, -2bp

iBoxx Corp HY

B+391.5bp, -6bp

🇺🇸 10 Yr US T-Bond

1.86%, +7bp

🇬🇧 FTSE 100

7156.83, (-0.44%)
🇩🇪 DAX

13035.24, (-4.01%)
🇺🇸 S&P 500

3225.89, (-3.60%)

As trade deal hopes rise…

The rallying markets are not getting ahead of themselves – as seen in a more reflective session on Tuesday. Nevertheless, the potential for some kind of a trade deal is the main driver for an improvement in the general tone, and the odds are stacked in favour of something getting done – not least because Trump needs a deal.

It might be the only bit of good news that he gets for a while. Whatever, market optimism saw the Chinese renminbi rally past the $7 mark, equities continue their ascent (the auto sector will breathe a sigh of relief), credit spreads maintain their tightening trend (the ECB will bolster the bullish mood), while alone heading weaker were rate markets. The latter continues to enjoy a fantastic year performance-wise amassing year to date returns of 8.2% (Eurozone government bonds, iBoxx).

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