EURO CREDIT-Brighter start to quarter-end

LONDON, Sept 30 (IFR) - After a couple of edgy days, credit is much brighter on the open after some solid gains for Asian stocks to end what has been a crummy third quarter. The Main is -1.875bp at 89.75bp, the Crossover -8.5bp at 375.5bp, and the Sen Fin -1.125bp at 95.5bp, all three having already reversed a good chunk of Tuesday's early losses by the close as a bounce in Glencore (Xetra: A1JAGV - news) stock dragged its other securities up too.

The Nikkei has led that overnight action, up 2.7% after a weaker yen offset disappointing IP and retail sales prints. Elsewhere the Hang Seng is up 1.61% and the Shanghai Comp 0.75% higher, while European and US futures are well into the black, by 1.8% for the Dax and getting on for 1% for S&P contracts.

Peripheral eurozone sovereigns are similarly having a good morning so far, and core fixed income is conversely soggy with 10-year Treasury yields +2.5bp just inside 2.08% and the belly giving back some of yesterday's gains.

The more positive Glencore mood is continuing for now. Bonds are indicated a touch tighter, having closed well off the lows yesterday on that equity rebound although still mostly underwater and still in context of a steeply negative curve.

On to today and eurozone flash inflation provides the morning highlight at 10am. Consensus is for flat y/y and +0.9% ex-food and energy, although that could be a little optimistic after yesterday's German and Spanish downside misses.

Before that there are German unemployment figures at 8:55am and UK final Q2 GDP at 9:30am.

The pre-payrolls data run begins this afternoon with the usual warm-up, ADP employment, at 1:15pm where consensus is +194k from August's +190k.

After a rest day Fed speakers swarm back today, most of whom - Yellen, Bullard and Brainard - are taking part from 8pm UK time in a conference of state bank supervisors in St Louis, Missouri. Otherwise Dudley makes his second appearance of the week at 1:35pm, having said on Monday that lift-off could come as soon as October and, more surprisingly, that inflation could be back at target sometime next year.

Overnight news:

ECB's Weidmann says expansive monetary policy shouldn't be maintained any longer than necessary; ECB should look through swings in inflation; EZ recovery has firmed and deflation concerns eased.

EU's Dombrovskis says EU considering one-off relaxing of deficit rules because of refugee crisis.

Moody's sees credit negative potential for sovereign if Catalonia is negotiating greater fiscal resources, expects "increase in regional devolution over the long term".

Swedish national pension fund considers dropping VW investments; Texas County sues VW for $100m, other counties consider participating in the litigation.

Japan Aug prelim industrial production missed at -0.5% m/m vs +1% consensus; Aug retail sales missed at 0.8% y/y vs 1.1% forecast.

API oil inventories show crude +4.6m; Cushing -1.2m; gasoline +3.3m; distillates +0.2m.

Abe adviser Takenaka says Japan should compile JPY5trn extra budget in autumn, should be followed by more easing; JPY in comfortable range of 115-120 vs USD.

China's SAFE announces Q2 current a/c surplus at $73bn; Q2 capital a/c deficit at $40.6bn; gold reserves +0.5m ounces to 54.5m; says will improve monitoring of cross border flows; will keep yuan basically stable; gold price volatility not conducive to using it as a reserve asset.

ECONOMIC CALENDAR:

See Reuters TGM2417, Bloomberg TG2417, or www.ifrmarkets.com/rates/global/economics/global-economic-calend ar

PRIMARY MARKET MANDATES and NEWS (Other OTC: NWSAL - news) :

SSA:

World Bank is out with a dual-tranche USD Global benchmark: a 3yr at MS+8 area IPTs and a 7yr at MS+20 area. Pricing today via BAML, Citi, MS and RBC (Other OTC: RBCI - news) . Rated Aaa/AAA. SEC (Shanghai: 603988.SS - news) exempt.

FIG/COVEREDS:

Raiffeisenlandesbank Niederoesterreich-Wien AG has mandated BayernLB, Commerzbank (Xetra: CBK100 - news) , Danske Bank (Copenhagen: DANSKE.CO - news) , DZ and Raiffeisen Bank International to arrange investor meetings from Tuesday 6 - Friday 9 October in Helsinki, Copenhagen, Frankfurt, Munich and Vienna. A euro Austrian mortgage covered bond may follow. Expected Aaa.

Agricultural Bank of China (Shanghai: 601288.SS - news) , rated A1/A/A, will hold a roadshow in London today and tomorrow for a planned Reg S issue, which will be the debut offering of Green bonds from a PRC lender. ABC (KOSDAQ: FED642.KQ - news) will also hold investor meetings in Frankfurt on October 1, before heading to Amsterdam and Stockholm. Expected in USD with a Dim Sum tranche also possible.

CORPORATE/HY/EM:

BorgWarner Inc (NYSE: BWA - news) , Baa1/BBB+/BBB+, has appointed Deutsche Bank (Other OTC: DBAGF - news) , HSBC and Morgan Stanley (Xetra: 885836 - news) to arrange investor meetings in Europe commencing on Tuesday 6 October. A NetRoadshow presentation will be made available. A euro capital markets transaction may follow BorgWarner's Q3 earnings announcement on 29 October.

Russian gas producer Gazprom is to start a roadshow for a Eurobond issue denominated in euros on Oct (HKSE: 3366-OL.HK - news) 5 via Banca IMI, JP Morgan (Other OTC: MGHL - news) and UniCredit (EUREX: DE000A163206.EX - news) .

For the full pipeline of upcoming deals see Reuters TGM17546, Bloomberg TG17546, or www.ifrmarkets.com/credit/europe/deal-pipeline/international-eur ope-asia

All of the day's pricings on Reuters TGM17522, Bloomberg TG17522, or www.ifrmarkets.com/credit/europe/deal-summary/international-euro pe-asia (Reporting by Julian Baker)