What to Watch in European Credit Markets This Week
- Investors to take defensive posture amid Brexit, Thanksgiving
- Primary markets likely to be muted but watch for bond crashes
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Good morning. Here’s what we will be watching this week:
The drama playing out at Westminster will likely shape market tone this week. Today, Theresa May is due to defend her Brexit deal in front of business. More cabinet resignations could signal further weakness, and there remains the possibility of a no confidence vote. U.K. banks in particular took a hit last week as rumors swirled. Such uncertainty is likely to weigh against risk taking in the markets, and constrain the flow of bond sales.