CONFIDENCE IN THE FRENCH MANUFACTURING sector improved in August rebounding from weak July data as consumer confidence holds steady at one-and-a-half-year highs. The decline in unemployment to 8.5 percent has boosted confidence pushing consumers to spend more. The 10-year gilt fell 5.3 basis points.
 

EUROPEAN EQUITIES ROSE following encouraging news China will consider relaxing auto restrictions. In addition to loosening car purchase limits, China will also support new-energy vehicle purchases.  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,  Glencore Funding LLC (USD) 4.125% 5/30/2023 made some analysts' 'Conviction buy' lists. (See the chart for Glencore Funding LLC bonds below). 

 

LATEST NEWS: Top moves, sovereign tighteners (5Y): France 21 bp and Ireland 33 bp. Sovereign wideners (5Y):  Finland 11 bp and Spain 42 bp.

New Issues	New Issues [Continued]
(None Current 08/27/2019)

DATA CHECK:

iShares Core EUR UCITS iShares Euro High Yield UCITS NAV as of 08/27/2019, 135.72 NAV as of 08/27/2019, 105.72 Daily NAV Change (%) +.02% Daily NAV Change (%) +.01%

OVERALL EUROPEAN CREDIT MARKET:
The euro-zone economy shows signs of negative momentum, weakening credit rating quality, and uncertainty regarding the outcome of Brexit. Closely watched indicators and rates:

• Eurostat's unemployment rate: currently 7.5% (seasonally adjusted, May 2019)
• Eurostat's quarterly GDP: 0.4% (2019 Q1)
• 6-month Euribor: current value -0.415%, as of 08/26/2019

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