EURO CDS: European credit markets have seen a slightly negative session with Xover currently 18bps wider at 732bps.

First Published Friday, 9th September 2011 03:49 pm - © 2011 MNI News

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EURO CDS: European credit markets have seen a slightly negative session with Xover currently 18bps wider at 732bps. Benchmarks are being priced a tad wider in line with stocks, which have seen a fairly large range this morning, but are currently down a net 1% or so. Traders suggest the wide choppy price action seen this week is set to continue with no material policy or strategy to deal with the Euro debt crises or US growth emerging this week. Obama's job plan while larger than expected at $440bln received a somewhat mixed response as to the real impact on US growth, but it was seen as a good start. Elsewhere, Bernanke's failure to mention any further stimulus initiative at a speech last night has also weighed on sentiment a little. As we head towards the US session, the market feels a little fatigued given the huge range this week, but traders suggest we will end the week on a mildly negative note. Its worth noting that in Europe, peripheral spreads are quite a bit wider today, despite talk of ECB intervention in the Spanish and Italian markets.

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