European credit default swaps indexes tightened on Wednesday after better-than-expected US housing starts and a rise in industrial output indicated that economic recovery was under way. By 1605 GMT, the investment-grade Markit iTraxx Europe index was at 88.75 basis points, according to data from Markit. That is 2.25 basis points tighter than late on Tuesday, according to data from BGC Partners.
The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 492.5 basis points, 12.5 basis points tighter.