Market Information Tuesday 22 January 2019

Market Information Tuesday 22 January 2019

Statistics Netherlands reported that consumer confidence has decreased for the sixth month in a row in January 2019. The confidence index decreased by 8 points to 1, the largest decrease in seven years. However, the index is still above the 20-year average.

The German federal statistics agency announced that producer prices have decreased by 0.4% in December 2018 compared to November 2018. Economists expected a decrease of 0.1%. For November 2018, a decrease of 0.1% was measured. On a year-on-year basis, an increase of producer prices has been measured in December 2018, compared to 3.3% in November.

The International Monetary Fund has adjusted its 2019 economic growth forecast for Germany from 1.9% to 1.3%. The expected growth for 2020 remains the same at 1.6%. The most important drivers for the adjustment are the global trade tensions, new emission norms for cars and lower consumption figures in Germany.

The 6M Euribor is unchanged at -0.24% compared to previous business day. The 10Y Swap decreased with 1 basis point to 0.80% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Monday 21 January 2019

Market Information Monday 21 January 2019

This week capital markets are mainly focused on the US government’s shutdown. The Democrats declined a proposal by US President Trump last weekend to find to a solution. On the macroeconomic front figures will be published on economic growth in Asia and industrial production in China. In Europe the monetary policy of the European Central Bank will be announced on Thursday.

Today, British Prime Minister Theresa May should propose an alternative to Parliament for her agreement with Brussels on the departure from the EU on 29 March. British parliamentarians from different parties try to prevent the country from leaving the union without agreements with the EU at the end of March. The ‘no-deal brexit’ would, in their eyes, be damaging to the British economy.

According to the National Statistics Bureau (NBS), the Chinese economy increased by 6.4% in the fourth quarter of 2018. On an annual basis, growth increased with 6.6%, which is the lowest level since 1990. Trade frictions between China and the United States have negative impact the Chinese economy. China’s central bank (PBOC), has repeatedly reduced the reserve requirements for banks in an effort to stimulate economic growth.

The 6M Euribor is unchanged at -0.24% compared to previous business day. The 10Y Swap increased with 2 basis points to 0.81% compared to previous business day.

The following macro-economic figures will be published in the coming week:
– Purchasing Managers’ Index (PMI) Eurozone
– Interest rates Eurozone
– Interest rates Japan

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Friday 18 January 2019

Market Information Friday 18 January 2019

Yesterday, Statistics Netherlands (CBS) announced that the unemployment rate increased to 3.6% of the working population in December 2018, from 3.5% in November 2018. The number of working people increased by 13.000, up to 8.9 million.

Eurostat announced that inflation in the eurozone fell to 1.6% in December 2018, compared to 1.9% in November 2018. This is in line with average expectation of economists and an earlier estimate of Eurostat. Core inflation, excluding food and energy prices, was 1.0% in December 2018. For the European Union, inflation was 1.7% in December.

According to the European bureau of statistics Eurostat, building production in the Eurozone decreased by 0.1% in November 2018 compared to October 2018. In October 2018, building production decreased by 1.6%, compared to September 2018. Production decreased by 0.2% in the European Union in November 2018, and by 1.1% in October 2018 on a monthly basis.

The 6M Euribor is unchanged at -0.24% compared to previous business day. The 10Y Swap increased with 1 basis point to 0.79% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Thursday 17 January 2019

Market Information Thursday 17 January 2019

The Chinese Central Bank has added a record amount of Rmb 570 billion (74 billion Euro) to the banking system, by providing short-term loans on collateral. The Central Bank states that the economy currently has a peak of tax payments and the liquidity of the banking system is quickly decreasing.

Yesterday’s vote of no confidence against the government of Theresa May was not accepted with 325 against 306 members. After the result May emphasized the importance of a solution that is negotiable with the EU and that can count on sufficient support of the parliament. Jeremy Corbyn states that the government should remove the possibility of a Brexit without a deal with the EU. May has until Monday to come up with a new plan.

The shutdown of the American government has been going on for 4 weeks now. The White House recognises the risk of a decreasing growth of the economy. Each two weeks that the civil servants do not get salary, the economic growth decreases with 0.13 percentage point.

The 6M Euribor is unchanged at -0.24% compared to previous business day. The 10Y Swap is unchanged at 0.78% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Wednesday 16 January 2019

Market Information Wednesday 16 January 2019

Yesterday evening just 202 members of the House of Commons backed the Brexit deal and 432 rejected the deal, this is a big defeat for May. After the results, Labour leader Jeremy Corbyn proposed a no -confidence motion. The vote of no confidence will take place today.

Despite yesterday’s defeat of Prime Minister May, the British pound remained stable. Immediately after the vote, the pound fell against the US dollar by 1.2%. However, Wednesday morning the pound was flat against the US dollar at USD 1.286 and against the Euro at EUR 1.127.

The oil prices are steady after increases since beginning of this year. The price of a barrel Brent oil is this morning USD 60.68 and the price for a barrel WTI oil is USD 52.13. The oil market expects an aggressive supply cut from Saudi Arabia. In addition, the market expects that the Organization of the Petroleum Exporting Countries (OPEC) will cut supply.

The 6M Euribor is unchanged at -0.24% compared to previous business day. The 10Y Swap decreased with 1 basis point to 0.78% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.