Euro Credit Default Protection Costs Decline as Sentiment Improves
Dow Jones
Sep 30
0926 GMT - The cost of insuring euro credit against default drops as market optimism resurfaces after strong earnings from tech firm Micron and as weak U.S. data and comments from a Federal Reserve official reduce prospects of another U.S. interest-rate hike next month. "Resilient earnings and AI enthusiasm" currently outweigh market concerns about high borrowing costs, IG analysts say in a note. The iTraxx Europe Crossover index of euro high-yield credit default swaps falls 5 basis points to 296bps. Still, it remains close to a nearly 6-month high of 301bps reached on Tuesday, S&P Global Market Intelligence data show.
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