DAILY CLOSE: Duo get August underway

** It was a measured start to the new month with just one deal pricing in each of euros and sterling. That saw CaixaBank take an opportunistic approach with a EUR1bn 12NC7 T2 offering, whilst HY name Ocado printed an upsized GBP450m unsecured deal having conducted a roadshow earlier in the week. See the respective IGM EUR and GBP NICS & BOOKS reports for full details of the trades that were launched despite a delicate broader market backdrop

** In non-covered FIG, August kicked off with CaixaBank delivering the first Tier 2 euro bank supply in over three weeks and its first since May 2023 with comparative rarity and previously unsatisfied demand ensuring a strong response. The EUR1bn (from benchmark) 12NC7 line attracted books above EUR3.25bn to land 30bps inside m/s +225a IPTs. How many others will make an appearance in the near future is uncertain although the pool of possible candidates is growing where a total 31 members of the Stoxx banks index have reported in the current cycle, only two of which have subsequently come to the euro market. See IGM’s FIG SNAPSHOT

** IG corporates were back on the side-lines Thursday, leaving the weekly euro supply for the asset class at EUR4bn from six tranches courtesy of four issuers. They rounded off what was a fairly underwhelming month for the sector, with the Jul euro total finishing at EUR11.95bn and comfortably the lowest monthly total of 2024. It was, however, more than the EUR10.9bn to price in the corresponding month in 2023 and actually marked the busiest Jul since 2020’s all-time high of EUR21.06bn

Friday's supply prospects

At the time of writing the public pipeline was empty, suggesting a slow end to the week.

** The IGM Roadshow Calendar is your one stop window on who, when and where. The calendar view provides an instant snapshot of which days are already earmarked for meetings in a convenient PDF format, with clickable links that take you directly to the known schedule

Thursday's broader market developments

** EU stocks were under pressure at the start of the new month, with some disappointing earnings weighing on sentiment. Societe Generale saw its share price dump as much as 8.7% after its retail unit performance impacted results. Eurozone Manufacturing PMI number was revised up along with the German figure, whilst flash numbers from the periphery were mixed (details below). US stocks opened up higher though to follow solid gains on Wall Street Wednesday, led by tech amid Fed rate cut optimism. Fed’s Powell said a Sep cut was "on the table" subject to data confirming a satisfactory trajectory on inflation. The BoE did cut rates Thursday by 25bps to 5%, with the vote 5-4 in a finely balanced decision (key takeaways here)

** Stoxx600 fell as much as 0.58% having closed Jul 0.47% higher. Financials led Thursday's losses

** Govvies: EGB lower across the board as the close approached. Gilts outperformed into and after BoE rate decision. 10yr gilt yield dropped as much as 10.15bps

** Data:

• CH Jul Caixin Manufacturing PMI missed at 49.8 (f/c 51.5, prev 51.8)
• UK Jul Nationwide House Prices rose to 0.3% (f/c 0.1%, prev 0.2%)
• SP Jul HCOB Manufacturing PMI missed at 51.0 (f/c 52.5, prev 50.7)
• IT Jul HCOB Manufacturing PMI beat at 47.4 (f/c 46.0, prev 44.1)
• FR Jul F HCOB Manufacturing PMI revised down to 44.0 (flash 44.1)
• GE Jul F HCOB Manufacturing PMI revised up to 43.2 (flash 42.6)
• EC Jul F HCOB Manufacturing PMI revised up to 45.8 (flash 45.6)
• IT Jun Unemployment Rate rose to 7% (f/c 6.8%, prev rev to 6.9%)
• UK Jul F S&P Global Manufacturing PMI revised up to 52.1 (flash 51.8)
• EC Jun Unemployment Rate rose to 6.5% (f/c & prev 6.4%)
• US Q2 P Nonfarm Productivity rose to 2.5% (f/c 1.8%, prev rev to 0.4%)
• US Weekly Continuing/Initial Jobless Claims higher than exp at 1877k/249k (f/c 1855k/236k, prev 1844k/235k)
• US Jul F S&P Global Manufacturing PMI as exp at 49.6 (prev 49.5)
• US Jun Construction Spending missed at -0.3% (f/c 0.2%, prev rev to -0.4%)
• US Jun ISM Manufacturing fell to 46.8 (f/c 48.8, prev 48.5)
• US Jun ISM Prices Paid rose to 52.9 (f/c 51.8, prev 49.3)

What to watch Friday

** Key Data: FR Jun Industrial Production (07:45), IT Jun Industrial Production (09:00), US Jul Change in Nonfarm Payrolls (13:30), US Jul Unemployment Rate (13:30), US Jul Average Hourly Earnings (13:30), US Jun Factory Orders (15:00) and US Jun F Durable Goods Orders (15:00)

** Key Events: Fed’s Barkin speaks (17:00)

** Auctions: BE to sell bonds through Ori auction (11:00)

** Earnings: 11 Stoxx600 & 7 S&P500 companies report

All times BST

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