Lindt & Sprungli is retesting recent breakout level
Lindt & Sprungli (LISP SW) approaching support level 10780 represented by March breakout and August 2022 highs.Keep an eye on this level. Source : Bloomberg
LVMH trying to find support on recent breakout level
LVMH (MC FP) is retesting recent breakout level 830. This support level was tested 5 times over the last 4 months. So keep an eye on it. Source : Bloomberg
ASML Holding on major resistance level 642
ASML Holding (ASML NA) is testing major resistance level 642. Will it have enough strength to break ? Source : Bloomberg
Greece’s 10-year government bond yield fell to 3.80%
The rate is down more than 110 basis points since last year’s high, taking down the spread to Italy bonds to -40bps.
Prime Minister Kyriakos Mitsotakis’s center-right New Democracy received almost 41% of the vote vs 20% for the leftist Syriza party. Mitsotakis could maybe secure a single-party government in about a month.
Will Greece be back in Investment Grade party?
Source: Bloomberg
Italy Maintains Investment Grade Status: Moody's Decision Confirmed!
In a crucial development for Italy's economic landscape, Moody's has confirmed the nation's BBB- sovereign debt rating after conducting a comprehensive review of its credit profile. This decision reinforces Italy's investment grade status, providing stability and reassurance to the market. The anticipated outcome is evident in the behavior of the spread between Italian and German 10-year yields, which has remained steady, along with remarkably low volatility in this spread over the past few weeks. Source: Bloomberg
How long can the Bank of Japan maintain its ultra-accommodating policy?
As Japan's core Consumer Price Index (CPI) reaches an impressive milestone of 4%, the nation finds itself at a pivotal juncture in its inflation landscape. This surge places Japanese inflation well above the Bank of Japan's (BoJ) target. While the BoJ's specific objective remains the maintenance of stable inflation at around 2%, the question arises: How long can the BoJ sustain its ultra-accommodative policy stance? With Japan's staggering debt-to-GDP ratio surpassing 200%, finding the right balance becomes crucial in addressing the potential challenges of runaway inflation. Source: Bloomberg
📉 Significant drop in High Yield volatility!
The recent sharp decline in European High Yield volatility highlights the market's complacency towards this fixed income segment. 📊 Examining the 30-day price volatility over the past decade, the High Yield index has reverted to 2021 levels, now standing one standard deviation below the average. 💼 Is the anticipated future recession in Europe already fully priced in on the soft side? Source : Bloomberg, RBC.
Attractive high quality European corporate bonds?
🌍 European investment grade corporate bonds offer some of the most attractive yields in a decade. 📉 Multiple factors contribute to this level, including the European Central Bank's sudden monetary policy tightening and widening credit spreads resulting from concerns over a deeper recession in Europe and higher default rates. 💼 The recent Credit Suisse event has further increased the European premium, creating compelling opportunities. 📈 Currently, the EUR swap curve (the reference curve for corporate refinancing in EUR) is historically high compared to the German yield curve, due to factors such as the supply shortage and the flight to quality. ❓ Despite the risk of recession in Europe, should we take advantage of the attractive long-term entry points of the European high quality credit segment?
