European credit spreads widened on Monday, tracking shares lower, but trading volumes in London were light as severe snowfall left many unable to get to work. By 1414 GMT, the Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 1,109.5 basis points, according to Markit data, 29.5 basis points wider versus late on Friday.
The investment-grade Markit iTraxx Europe index was at 166.5 basis points, 8.5 basis points wider. Among the biggest movers among single name credits was Barclays. Its five-year credit default swaps were about 15 basis points wider at 180 basis points, according to Markit, after a rating downgrade late on Sunday.
Moody's Investors Service cut its long-term ratings on Barclays Bank by two notches to Aa3, citing expectations for "significant" further losses due to credit-related writedowns and rising impairments.
Barclays shares fell more than 11 percent. On the data front, a key European manufacturing survey - the PMI - showed that factory activity shrank at a slightly slower pace in January, but factory prices continued to slide, falling at their fastest rate in six years. The ISM manufacturing report in the United States, due at 1500 GMT, is expected to show a further sharp contraction last month.
Comments
Comments are closed.