The cost of using credit default swaps to insure euro-denominated credit against default fell as market sentiment improved after the U.S. Federal Reserve cut interest rates by 50 basis points, according to Jin10 Data.

Russ Mould, investment director at AJ Bell, said markets appeared to be viewing the sharp rate cut as a positive.

The iTraxx Europe Crossover index, which tracks euro high-yield credit default swaps, fell 8 basis points to 278 basis points, while the iTraxx Europe Main index, which tracks euro investment-grade CDS, fell 1 basis point to 52 basis points, according to S&P Global Market Intelligence data.