POOR DATA SINKS EUROPEAN SHARES at its lowest level since December 2018. China trade data and German industrial orders tightened bears’ grip on the market, justifying a global economic slowdown. EPFR data showed investors redeemed $3.1 billion from European equity funds this week, driving total outflow of capital from the region year-to-date tp $25.9 billion. The next few weeks will be crucial as trading platforms maneuver assets from London to the European Union. Consultancy EY stated, “So far, 800 billion euros of assets had shifted from London to new banking hubs in EU.” European antitrust authorities plan to fine carmakers BMW and VW up to “1 billion euros each for colluding on reducing the effectiveness of exhaust filtering systems,” German weekly stated. ADI (Advantage Data Inc.) 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, Johnson Controls International PLC (USD) 4.625% 7/2/2044 made some analysts' 'Conviction Buy' lists. (See the chart for Johnson Controls International PLC bonds below.) Niral Mehta (nmehta@advantagedata.com).

Country	Maturity (Y)	Yield (%)	Previous (%)	Spread (bp)
Australia	10	2.096	2.108	-54.0
Belgium	10	0.555	0.641	-208.1
France	10	0.425	0.514	-221.1
Germany	10	0.067	0.129	-256.8
Italy	10	2.487	2.615	-14.9
Japan	10	-0.009	-0.004	-264.5
Netherlands	10	0.160	0.227	-247.6
Portugal	10	1.339	1.421	-129.7
Spain	10	1.056	1.117	-158.0
Sweden	10	0.316	0.369	-231.9
U.K.	10	1.173	1.228	-146.2
U.S.	10	2.636	2.691	...

New Issues	New Issues [Continued]
1. Banque Fed du Credit Mutuel (EUR) 1.75% 3/15/2029 (03/07/2019): 1000MM Senior Non Preferred Notes, Price at Issuance 99.302, Yielding 1.827%. 2. Turk Sise Ve Cam Fabrika (USD) 6.95% 3/14/2026 (03/07/2019):550MM Senior Unsecured Notes. 3. Turk Sise Ve Cam Fabrika (USD) 6.95% 3/14/2026 Reg S (03/07/2019): 550MM Senior Unsecured Notes.

DATA CHECK:

iShares Core EUR UCITS	iShares Euro High Yield UCITS
NAV as of 03/08/2019, 129.59	NAV as of 03/08/2019, 103.71
Daily NAV Change (%) -0.18%	Daily NAV Change (%) -0.34%

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, January 2019)
• Eurostat's quarterly GDP: 0.2% (2018 Q3 Final)
• 6-month Euribor: current value -0.231%, as of 03/07/2019

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