Euro Credit Default Protection Costs Rise as Market Sentiment Deteriorates
Dow Jones
Sep 14
1229 GMT - The cost of insuring euro-denominated credit against default rises amid geopolitical tensions, rising oil prices, and AI-related concerns. Focus is on interest-rate decisions by the U.S. Federal Reserve, the Bank of England and the Bank of Japan due this week. This comes after the European Central Bank increased rates last week. The Fed and the BOJ are widely expected to raise interest rates on Wednesday and Friday, respectively. Markets expect the BOE to keep rates on hold at 3.75%, but fully price in four rate increases by June 2027, LSEG data show. The iTraxx Europe Crossover index of euro high-yield credit default swaps rises 4 basis points to 262bps, S&P Global Market Intelligence data show.
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