Euro credit default protection costs decrease; market expects the Federal Reserve may cut interest rates.

Gold Ten Data November 11th: As the prospect of a resolution to the US government shutdown boosts market sentiment, the cost of euro credit default protection is decreasing. IG analysts stated in a report that the end of the shutdown will lead to the release of US data again. They believe these data could support the Federal Reserve’s case for interest rate cuts and boost demand for risk assets. According to S&P Global Market Intelligence, the iTraxx Europe Crossover index, which measures euro-denominated high-yield credit default swaps, fell by 1 basis point to 261 basis points. The iTraxx Europe Main index, tracking euro investment-grade credit default swaps, also fell by 1 basis point to 54 basis points.