EUROPEAN MARKETS WAVERED ON WEDNESDAY struggling for direction amid escalating global trade tensions. “Now we’re left wondering whether it will happen at all and what impact more tariffs will have on the global economy and markets. The next few days could be massive.” Craig Erlam market analyst at Oanda in London.  The British pound edged 0.47 percent lower against the dollar.  The 10-yearGilt dipped 2.3 basis points.  FTSE 100 +0.18%, German DAX +0.86%, CAC 40 +0.41%, STOXX Europe 600 +0.19%.

GERMAN INDUSTRIAL CONGLOMERATE SIEMENS reported positive earning exceeding investor expectations surging more than 4 percent.  Siemens revealed plans to spin off its struggling gas and power unit to boost profit within the conglomerate. “We know that some competitors and rival CEOs had to experience what happens when you run out of options…We wanted to remain proactive and anticipate the transformation,” alluding to GE stated Joe Kaeser Siemens CEO.  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,  BP Capital Markets Plc (USD) 3.994% 9/26/2023 made some analysts' 'Conviction Buy' lists. (See the chart for BP Capital Markets bonds below). Corey Mahoney (cmahoney@advantagedata.com).

Country	Maturity (Y)	Yield (%)	Previous (%)	Spread (bp)
Australia	10	1.794	1.748	-65.5
Belgium	10	0.417	0.453	-203.2
France	10	0.330	0.366	-211.9
Germany	10	-0.036	0.011	-248.4
Italy	10	2.586	2.593		13.7
Japan	10	-0.050	-0.029	-249.9
Netherlands	10	0.142	0.181	-230.7
Portugal	10	1.093	1.117	-135.6
Spain	10	0.965	0.981	-148.4
Sweden	10	0.115	0.170	-233.4
U.K.	10	1.159	1.221	-129.0
U.S.	10	2.449	2.485	...

LATEST NEWS: Top moves, sovereign tighteners (5Y): Belgium 23 bp and Netherland 12 bp. Sovereign wideners (5Y): France 27 bp and Sweden 11 bp.

New Issues	New Issues [Continued]
1. Liechtensteinische Landesbank Ag Vaduz (CHF) 0.125% 5/28/2026 (05/07/2019): 150MM Senior Unsecured Notes, Price at Issuance 100.384, Yielding .07%. 2. Car Inc. (USD) 8.875% 5/10/2022 (05/07/2019): 172MM Senior Unsecured Notes, Price at Issuance 100, Yielding 8.875%.

DATA CHECK:

iShares Core EUR UCITS	iShares Euro High Yield UCITS
NAV as of 05/08/2019, 131.92	NAV as of 05/08/2019, 103.32
Daily NAV Change (%) -0.13%	Daily NAV Change (%) -0.22%

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 7.7% (seasonally adjusted, March 2019)
• Eurostat's quarterly GDP: 0.4% (2019 Q1 Preliminary)
• 6-month Euribor: current value -0.229%, as of 05/07/2019

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