EUROPEAN EQUITIES EDGED LOWER ON THURSDAY following mixed earnings and weak economic data. Commerzbank in Germany fell 3 percent after Deutche bank decided to discontinue early talks regarding a merger or acquisition. Barclays sank 4 percent after reporting disappointing earnings revealing first-quarter profit declined 10 percent year-over-year. The 10-year Gilt settled 2.1 basis points lower. FTSE 100 -0.73%, German DAX -0.38%, CAC 40 -0.47%, STOXX Europe 600 -0.35%.

PRELIMINARY U.K. RETAIL SALES IMPROVED IN APRIL for the first time in five months signaling consumer sentiment has ticked-up despite no progress regarding Brexit.  “It’s encouraging to see retailers with more of a spring in their step than in recent months,” Rain Newton-Smith, the CBI’s chief economist, said.  Data released last week also revealed a spike in retail sales volume not seen in nearly two-and-half years.  Britain government is hopeful to leave the bloc in May before the new European parliament takes their seats July.  David Lidington stated “I don’t think this can be allowed to drift for much longer” expressing the concern of many British businesses.  ADI (Advantage Data Inc.) extensive corporate-bond index data showed a net daily yield increment for high-grade versus high-yield constituents. High-grade bonds edged out high-yield debt as of 3 PM, London time.  Among European high-grade bonds showing a concurrence of top price gains at appreciable volumes traded,   Actavis Funding SCS (USD) 3% 3/12/2020 made some analysts' 'Conviction Buy' lists. (See the chart for Actavis Funding SCS bonds below). Corey Mahoney (cmahoney@advantagedata.com).

Country	Maturity (Y)	Yield (%)	Previous (%)	Spread (bp)
Australia	10	1.796	1.905	-72.7
Belgium	10	0.443	0.492	-208.0
France	10	0.348	0.396	-217.5
Germany	10	-0.010	0.044	-253.3
Italy	10	2.626	2.678		10.3
Japan	10	-0.036	-0.030	-255.9
Netherlands	10	0.168	0.219	-235.5
Portugal	10	1.171	1.204	-135.2
Spain	10	1.070	1.113	-145.3
Sweden	10	0.238	0.277	-228.5
U.K.	10	1.179	1.227	-134.4
U.S.	10	2.523	2.569	...

LATEST NEWS: Top moves, sovereign tighteners (5Y): France 28 bp and UK 29 bp. Sovereign wideners (5Y): India 93 bp and Spain 59 bp.

New Issues	New Issues [Continued]
1. Unione di Banche Italiane SCpA (EUR) 1% 11/30/2022 (04/24/2019): 300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 1%. 2. Royal Bank of Canada (EUR) 0.25% 5/2/2024 (04/24/2019):500MM Senior Unsecured Notes, Price at Issuance 99.476, Yielding .356%.

DATA CHECK:

iShares Core EUR UCITS	iShares Euro High Yield UCITS
NAV as of 04/25/2019, 131.95	NAV as of 04/25/2019, 104.27
Daily NAV Change (%) -0.11%	Daily NAV Change (%) -0.33%

OVERALL EUROPEAN CREDIT MARKET:
The euro-zone economy shows signs of positive momentum, although conditions are expected to deteriorate hindered by the termination of quantitative easing, weakening credit rating quality, and uncertainty regarding the outcome of Brexit. Closely watched indicators and rates:

• Eurostat's unemployment rate: currently 7.8% (seasonally adjusted, February 2019)
• Eurostat's quarterly GDP: 0.2% (2018 Q3 Final)
• 6-month Euribor: current value -0.231%, as of 04/24/2019

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