European corporate credit default swap spreads maintained a tightening bias on Tuesday, driven by a rally in global stock markets and strong banking and corporate results. By 0630 GMT, the investment-grade Markit iTraxx Europe index was at 98.5 basis points, according to data from Markit.
That is 1 basis point tighter versus late on Monday, according to data from BGC Partners. The Europe index closed below 100 bps on Monday for the first time since May 13. The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 454 basis points, 2 basis points tighter. US shares closed at a 10-week high on Monday, driven partly by strong results from European banks BNP Paribas and HSBC. Those results helped push the Markit iTraxx subordinated financial index 7 bps tighter to 176 bps on Monday, its lowest level since April 21. Among the latest European earnings, Dutch chemicals group DSM and Deutsche Post posted solid results on Tuesday.