European credit risk index registered the largest increase since the trade turmoil caused by Trump's tariffs in April last year.

Due to market participants coping with the prolonged Middle East conflict and the inflation risk it brings, the index measuring European credit risk saw its largest one-day increase since April 2025. Data compiled by Bloomberg shows that the iTraxx Crossover index, which tracks junk-rated credit default swaps as a key gauge of risk sentiment, surged by 17.4 basis points to 281.1 basis points. A similar index measuring investment-grade CDS, iTraxx Main, also rose by as much as 3.8 basis points to 60.2 basis points. After adjusting for index roll factors, the volatility of these two indices both marked the biggest increase since last year when Trump disrupted the market by implementing comprehensive tariffs plan.