14 May 2015 by lberuti
With part of Europe closed for Ascension Day, no one really expected a bumper day in terms of activity. Volumes were effectively on the low side, and they were exchanged in a very well behaved environment. With interest rates taking a breather, credit indices took the whole to cancel yesterday’s late spike. So, on the market as a whole, the general move was fairly benign and gave investors little clue on how to trade single name CDS. It did not mean that nothing happened though. Metal companies for instance were notable outperformers. The EU is examining whether exporters of certain products sell them in the 28-nation bloc below cost, and an investigation into cold-rolled products of iron and non-alloy steel is under way. That gave MTNA ( ArcelorMittal SA ) a boost, as tariffs were imposed yesterday on a number of products coming from the US, China, Russia, Japan and North Korea. Its shares closed up more than 6% and its 5-year risk premium tightened 10bps to 270bps.