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Strong Like A Bull

17 November 2015 by lberuti

Yesterday was extraordinary range bound with iTraxx Crossover(ITXEX) and iTraxx Main (ITXEB) staying in 4bps and 0.5bps corridors respectively. A weak open spurred on by soft trading in Asia and slumping oil prices gave way to a firmer tone as credit? tracked European and US equities off their lows. While the tragic events in Paris certainly did not help sentiment to begin with, analysts pointed out that the consequences on financial markets of terrorist attacks tend to be limited and short lived. This resilience in the face of terrorist activity was confirmed today and credit climbed steadily throughout the session to close at the tightest levels of the day. Indices could make a pause tomorrow though, as they are fast approaching on both sides of the Atlantic important strikes (70 for ITXEB, 300 for ITXEX and 80 for CDXIG) which could prove sticky during what will be an option expiry session.