European credit spreads tightened on Wednesday on better-than-expected corporate results and US data showing that businesses had reduced unsold inventories, outweighing a sharp drop in gross domestic product.
By 1530 GMT, the Markit iTraxx Crossover index, made up of 45 mostly "junk"-rated credits, was at 823 basis points, according to data from Markit, 32 basis points tighter versus late on Tuesday. The investment-grade Markit iTraxx Europe index was at 144.5 basis points, 8.5 basis points tighter.
Five-year credit default swaps on ArcelorMittal tightened by 102 basis points to around 773 basis points, according to Markit data, after the world's largest steelmaker said it planned to offer about $2.5 billion in shares and $500 million in convertible notes to speed up debt reduction.