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CREDIT BULLETS: Financials jump in at end of week

  • European stocks give back a big chunk of the gains seen Thursday in the wake of the Fed’s 50bp cut. US futures are also lower after S&P500 (+1.7%) and Nasdaq (+2.51%) both rallied hard Thursday, taking the former to a record high, loosely chalked up to increased hopes for a soft landing. Asian markets were more buoyant Friday, the BoJ held rates steady. UK Retail Sales were much higher than expected, with this afternoon’s data focus on Eurozone Sep Consumer Confidence
  • Stoxx600 dips as much as 0.8% having closed 1.38% higher on Thursday. Still up on the week at this stage. Consumer Discretionary and Tech stocks main laggards on Friday
  • Govvies: EGB yields marginally lower across the board this morning to follow Thursday’s steepening move
  • Primary: Financial issuers Nykredit Realkredit & Grenke are rounding off a slower week for issuance, whilst a handful of mostly IG corporates have announced mandates for next week (see below)
  • Performance checker of Thur’s EUR benchmark deals (bp spread change from reoffer) –
    • SSA: ROMANI 5.125% 09/31 +3, ROMANI 6% 09/44 +2
    • FIG: ACAFP (SNP) 3.125% 1/29-28 +1, ACAFP (SNP) 3.50% 9/34 unch
    • Covered: DBSSP 2.5995% 03/28 -1
  • Ahead: Eurozone Sep Consumer Confidence is due, whilst ECB chief Lagarde and Fed’s Harker are to speak. S&P500 futures -0.2% and Nasdaq futures -0.4%

Live deals

IssuerDeal TypeCCYAmount (mn)MaturityInitial Price TalkFinal PricingIPT to PxdBook Size (mn)
Grenke Finance PlcSocial BondEURTBD04/01/2029m/s+300a`-750
Nykredit Realkredit A/SSenior non-preferredEURTBD10/07/2031m/s+145a--1,000

Fresh in the pipeline

IssuerCCYNotes
AltareaEURCalls 23-24 Sep; 300m wng 7yr
Bunzl Finance plcEURCalls 23-24 Sep; 500m wng 7.5yr debut
Dynamo NewCo II GmbHEURCalls 23-24 Sep; 600m 7NC3 SSN
Kesko CorporationEURCalls 23-24 Sep; 300m exp long 5yr Green
People's Republic of ChinaEURCalls 24 Sep; 3yr & 7yr two-part
Wintershall Dea Finance B.V.EURCalls 23-24 Sep; bmk 5yr & 8yr two-part

Key economic data / events so far

  • UK Sep GfK Consumer Confidence missed at -20 (f/c & prev -13)
  • JN Aug CPI as exp at 3.0% (prev 2.8%)
  • UK Aug Retail Sales MoM above f/c at 1.0% (exp 0.4%, prev rev to 0.7%), ex-auto fuel above f/c at 1.1% (exp 0.5%, prev rev to 1.0%)
  • UK Aug PSNB ex Banking Groups higher than exp at 13.7bn (f/c 12.6bn, prev 3.1bn)
  • GE Aug PPI YoY higher than exp at -0.8% (f/c -1.0%, prev -0.8%)
  • FR Sep Business/Manufacturing Confidence as exp at 98/99 (prev 99/97)

Auctions

  • No major term auctions scheduled for Friday 20th Sep

Ahead

  • EC Sep P Consumer Confidence (15:00)
  • ECB’s Lagarde (16:00)
  • Fed’s Harker (19:00)


All times BST


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