CREDIT BULLETS: A day of rest for primary with jobs data looming
- EU stocks shake off initial weakness. That sets up major European indices for a potential 7th straight gain although anything could happen this afternoon with today’s key US jobs data looming. French bonds (and stocks) outperform with the 10yr FR/GER yield spread down to 73bps vs Mon’s long-term peak above 88bps. Relief for French assets comes as markets wait to see if President Macron is able to cobble together a new administration. German IP was weak, cementing the mood of economic gloom, but has been largely overlooked by markets. US index futures almost flat to follow very minor losses seen Thursday for Nasdaq and S&P500 which both hit record intraday highs
- Stoxx600 +0.30% at best (up as much as 3.2% in the last seven sessions) with consumer discretionary leading gains
- Govvies: French 10yr yield last 2.4bps lower vs. a 1.7bps rise from the German equivalent
- Primary: A payroll Friday blank leaves the week at EUR5.55bn (all asset classes) while the ex-HY total of EUR4.45bn tops the average weekly supply estimate of EUR3.5bn
- Ahead: Spotlight on US NFPs and a flurry of Fed speakers before FOMC officials enter blackout at the weekend ahead of the 18th Dec verdict. S&P futures -0.1% and Nasdaq futures -0.1%
Live deals/updates
- No live deals or updates to the pipeline on Friday 6th Dec
Key Data:
- GE Oct Industrial Production MoM missed at -1.0% (exp 1.0%, prev -2.0%)
- EC Q3 F GDP QoQ confirmed at 0.4%
Auctions
- No major term auctions scheduled for Friday 6th Dec
Ahead
- US Nov Change in Nonfarm Payrolls (13:30)
- US Nov Unemployment Rate (13:30)
- US Nov Average Hourly Earnings (13:30)
- US Dec P Uni of Michigan Sentiment (15:00)
- Fed’s Bowman (14:15), Goolsbee (15:30), Hammack (17:00) & Daly (18:00)
All times GMT
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