European CDS indices extend gains

European credit derivatives indices extended a sharp rally on Tuesday after US data on existing home sales showed the biggest monthly increase in more than seven years, bolstering hopes for economic recovery. By 1444 GMT, the investment-grade Markit iTraxx Europe index was at 105 basis points, according to data from Markit, 8 basis points tighter versus late on Monday.
The Markit iTraxx Crossover index, made up of 45 mostly "junk"-rated credits, was at 661 basis points, 26 basis points tighter.