Advantage Data High Yield Bond Market Summary

BANK OF ENGLAND KEEPS RATES ON HOLD   AT 0.75 PERCENT AS BUSINESSES “BRACE” FOR   possible  no-deal Brexit.  “The   economic outlook will continue to depend significantly on the nature and   timing of EU withdrawal,” the BoE said.  Brexit uncertainty has created volatility in British asset prices and sterling is impairing businesses  confidence and investment.  Inflation is running below the BoE’s 2 percent target, which is one   rationale on not raising rates; allowing   borrowing costs to be low-cost.   Banking shares had risen earlier this week on signs of a merger between Deutsche Bank and Commerzbank being   officialized soon.  Bundesbank sees no “credit crunch” after Brexit.  The UK 10-year Gilt   declined 10 basis points.  FTSE 100, +1.05%,  STOXX Europe 600 +0.12%,  CAC 40 +0.19%,  German DAX -0.26%. 

CME STATED, EURO TRADING HAS MOVED TO AMSTERDAM ahead of   Brexit; full migration will be   completed  by April 1 ^st. CBOE Europe is “closely   monitoring political discussions  and would react as quickly as possible” that would   alter the April 1 ^st   launch date. UK will produce a new indicator called a VAT index,   which will display whether businesses are seeing more or less turnover in employment; providing better   clarity on economic growth and contraction. Bank of England will be utilizing this indicator to   gauge inflation and determine  interest rates. The UK 10-year Gilt declined two basis points.   FTSE 100, +0.77%,  STOXX Europe 600 +0. 20%,  CAC 40 +0.13%,  German DAX -0.12%.

EUROPEAN SHARES ADVANCED HIGHER  as investors hope the UK rejects no-deal Brexit. This   induced the   British pound  to   rally  by half a percentage point . UBS Analyst stated, “UBS’s Wealth Management Group remain cautious with client’s assets and are avoiding short-term rallies in the pound, and reducing exposure to UK equities.” Investment Bank, JP Morgan   reduced the probability of the UK leaving the European Union to   35 percent from 45 percent. Despite the   optimistic environment, Japan’s machinery orders   fell in January at the   fastest pace in four months causing downward pressure on the Nikkei. The   Australian   dollar skidded lower after a consumer confidence gauge triggered   concerns about a slowing economy. The UK 10-year Gilt rose 2 basis points.   FTSE 100, +0.11%,   STOXX Europe 600 +0.51%,   CAC 40  +0.65%,   German DAX  +0.65%.

IRISH SHARES OUTPERFORMED THE REST OF THE EUROZONE after   Britain and the European Union  agreed to alterations on Britain’s withdrawal agreement, which eased some   fears of no-deal Brexiton March 29.   Dublin’s ISEQ climbed 1.4 percent, set for its biggest gain since Feb. 5.   Head of European Equities at German asset Manager DWS stated, “Positive momentum in the markets will continue once we know what the final outcome of Brexit is going to be.”   The British pound is at a critical level of 1.31 against the U.S. dollar. “Anything above this level is seen as Brexit certainty by investors , whilst anything below is seen  as Brexit uncertainty, mentioned Hamish Muress, a Currency Analyst at OFX. FTSE 100 +0.20%,  STOXX  Europe  600 - 0.01%,  CAC 40 +0.14%,  German DAX -0.16%.