European credit spreads were little changed to slightly wider on Friday, reflecting uncertainty over the effectiveness of a US stimulus plan to revitalise the economy and ahead of a Group of Seven meeting in Rome. By 1610 GMT, the investment-grade Markit iTraxx Europe index was at 155 basis points, according to data from Markit, flat versus late on Thursday.
The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 1,071 basis points, 8 basis points wider. Weak economic data from the eurozone intensified gloomy sentiment, with the economies of Germany, France and Italy all having contracted more sharply than expected in the final quarter of 2008. US stocks edged higher after falling back initially in response to more bad news from the financial sector, with UK bank Lloyds Banking Group reporting bigger-than-expected bad loans.
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