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European corporate credit default swap spreads were steady on Wednesday, with markets focused on economic data, including eurozone inflation and jobs numbers, for more clues on the state of the recovery. By 0636 GMT, the investment-grade Markit iTraxx Europe index was 104.5 basis points, according to data from Markit. That was 0.25 basis point wider versus late on Tuesday, according to data from BGC Partners.
The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 469.25 basis points, 1.25 basis points wider. US shares were lifted by solid retail sales data on Tuesday, but that followed a weaker-than-expected ZEW sentiment survey in Germany, which weighed on confidence.
Elsewhere, the primary market was expected to remain lively. French utility Suez Environment raised 750 million euros via a hybrid bond on Tuesday, and was able to tighten guidance to mid-swaps plus 290 bps due to strong demand. Markit also announced the final changes of its index members late on Tuesday, ahead of its bi-annual rollover due on September 20.

Copyright Reuters, 2010

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