DAILY CLOSE: Northern Gas sells retained sterling as the US votes
** The European bond market fell deeper into the shadow of the US presidential election on Tuesday, with Americans heading to the ballot box. Latest polls suggested that the result is too close to call, meaning we may not know the outcome for days or even weeks, with that uncertainty likely to keep a lid on primary supply for the rest of this week at least. The only bond activity of any sort on Tuesday came thanks to Northern Gas which conducted a GBP150m sale of 6.125% Jun 2033 retained bonds, as detailed here
Wednesday's primary prospects
At the time of writing there were no confirmed deals for Wednesday's business
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Tuesday's broader market developments
** European stocks traded in a narrow range around unch, seemingly awaiting fresh impetus from the US elections where Americans start voting today. The polls suggest that we could be in for a close call, meaning we may not know the outcome for days (or even weeks). US stocks advanced with Palantir up over 20% after reporting upbeat results dragging the Nasdaq higher.
** Stoxx600: advanced as much as 0.31% before falling back to trade at -0.33% mid-afternoon. Industrials and Energy the best of the bunch whilst Healthcare lost over 2%.
** Govvies: The path of least resistance for yields was higher, almost across the board on Tuesday with the longer end underperforming in EGBs (with Italy marginally bucking the trend at the front end). Gilt yields were higher and with a flattening bias with 2yr +9bp and 10yr +7bp to both trade around 4.52%. US yields were jolted higher by strong services ISM data ahead of a 10yr sale
** Data:
- CH Oct Caixin Services PMI beat at 52.0 (f/c 50.5, prev 50.3)
- FR Sep Industrial Production lower than exp at -0.9% MoM (f/c -0.6%, prev rev to 1.1% from 1.4%), Manufacturing number higher then exp at -0.8% (f/c -1.3%, prev rev to 1.4% from 1.6%)
- SP Oct Unemployment Change lower than exp at 26.8k (f/c 27.0k, prev 3.2k)
- UK Oct F S&P Global Composite/Services PMIs revised up to 51.8/52.0 (51.7/51.8 flash)
- US Sep Trade Balance in line at USD-84.4bn (exp -84.0bn, prev -70.8bn)
- US Oct ISM Services Index higher than exp at 56.0 (exp 53.8, prev 54.9)
What to watch Wednesday – US election results, PMIs & earnings
** Key Data: SP Oct HCOB Composite/Services PMIs (08:15), IT Oct HCOB Composite/Services PMIs (08:45), FR Oct F HCOB Composite/Services PMIs (08:50), GE Oct F HCOB Composite/Services PMIs (08:55), EC Oct F HCOB Composite/Services PMIs (09:00), UK Oct S&P Global Construction PMI (09:30), EC Sep PPI (10:00) and US Weekly MBA Mortgage Applications (12:00)
** Key Events: ECB’s Escriva (11:00), Vujcic (12:00), Lagarde (14:00), Guindos (14:30) & Villeroy (17:00) all scheduled to speak. US Presidential Election results
** Auctions: GE to sell EUR1.5bn 2041 & 2046 Bunds (10:30) and US to sell USD25bn 30yr Bonds (18:00)
** Earnings: 35 Stoxx600 & 28 S&P500 companies release results. Former includes Commerzbank, Credit Agricole & UniCredit
All times GMT
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