Primary market bullets on Thursday:
** It was a more active session for primary activity on Thursday with EUR3.575bn printing in the single currency courtesy of six tranches from five issuers. For the breakdown of today's Euro issues please see IGM's Daily EUR supply Snapshot.
** The corporate market dominated once again with an American feel to it as US issuers Ecolab Inc and Becton Dickinson were joined by German borrower Knorr-Bremse AG to raise EUR2.075bn between them. See IGM's CORP SNAPSHOT for background and relative value analysis.
** Aegon and Barclays kept FIG supply ticking over on the day, both printing Euro senior transactions totalling EUR1.5bn. For more colour see IGM's FIG SNAPSHOT.
** The sterling market was also active thanks to rare issuers Marks and Spencer plc and Bupa Finance. The latter printed a GBP400m 10yr subordinated line whilst M&S issued GBP300m of 7yr senior paper. For more background see IGM's CORP SNAPSHOT.
** At the time of writing there were no deals confirmed for Friday's business although the pipeline remains active and we could see other names attempt to get in ahead of the Italian referendum and Austrian presidential election over the weekend, There would still be the added distraction of headline econ event risk in the shape of US payrolls to navigate on Friday, however. See full pipeline here while links to pipelines split by asset class can be found at the bottom of this page.
Broader market price action on Thursday:
** Oil and core yields continue rising Thursday while risk tone sours as political risk helps contain animal spirits (Italian referendum/Austrian presidential election both on Sunday)
** Brent touches fresh over 7-week high at $53.48 with bulls ignoring execution and compliance risks on OPEC cut, for now.
** Reflation trade most evident in sovereign debt complex, 30yr bund yields top 1% as curves bear steepen.
** Stoxx600 -0.48% as at 15.10, all sectors fall except energy which remains underpinned following Weds OPEC deal.
** iTraxx indices sea-sawed with Main flat at 79.9 and Crossover +1.7 at 341.6 as at 15.14 GMT.
What to watch Friday:
** Data: The highlight will be the US labour market report. The consensus is for 180k nonfarm payroll additions and a 4.9% unemployment rate. Before then, the UK reports Markit/CIPs Construction PMI a day after the Mfg equivalent dropped to its lowest level since August. Eurozone PPI is seen less negative in Oct, while Spanish Nov Unemployment should improve.
** Events: BoE's Haldane and Fed's Brainard and Tarullo are the only central bankers scheduled to speak.
** Supply: There is no significant term supply in Europe or US on Friday 02nd December.
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