Market Information Friday 20 September 2019

Market Information Friday 20 September 2019

The Statistics Bureau of Japan reported that core inflation decreased to its lowest point since 2017. Inflation decreased from 0.6% on annual basis in July to 0.5% in August. This decrease was in line with the expectation of economists. Consumer prices excluding food and energy increased by 0.6% on annual basis.

According to the American association for real estate agents, existing home sales increased unexpectedly in August. Sales increased by 1.3% in August compared to July, while economists expected a decrease of 0.7%. Sales increased from 5.42 million to 5.49 million.

According to Statistics Netherlands (CBS), the volume of investments in tangible fixed assets was 4.4% higher in July 2019 than July 2018. In June, volume decreased by 0.6% compared to the same month one year earlier. Investments in commercial buildings and machinery in particular were higher than a year ago.

The 6M Euribor is unchanged at -0.37% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.11% 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 19 September 2019

Market Information Thursday 19 September 2019

The Fed lowered its federal funds rate by 25 basis points to a range of 1.75% and 2.00%. This is the second decrease in interest rates. Fed chairman Jerome Powell called the decrease ‘an insurance policy’ against future adverse developments. American President Trump is not satisfied with the decrease, which he considers to be too small. Trump wants interest rates to be much lower and even asked for negative interest rates last week, as with the European Central Bank.

The European Statistical Office Eurostat reported that inflation (HICP) in the Eurozone remained stable at 1% on a yearly basis in August 2019. For the European Union as a whole, the inflation rate was measured at 1.4% year-on-year in August, just as it was in July. Core inflation, excluding the impact of volatile prices, for energy, food, beverages and tobacco, also remains unchanged at 0.9%.

According to Statistics Netherlands (CBS), the number of unemployed persons has increased by an average of 7,000 per month to 321,000 over the last three months. This means that 3.5% of the working population aged 15 to 75, who are actively seeking for work, is unemployed. In July this was 3.4%. The increase in the number of unemployed people predominantly occurred in the age groups up to 45 years.

The 6M Euribor decreased with 1 basis point to -0.37% compared to previous business day. The 10Y Swap decreased with 4 basis points to -0.10% 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 18 September 2019

Market Information Wednesday 18 September 2019

Yesterday on Budget Day, the Dutch government announced that the economy is expected to grow by 1.5% in 2020, compared to 1.8% growth this year. Collectively agreed wages will increase by 2.5% and unemployment will equal 3.5% in 2020. Based on the purchasing power estimates for 2020, presented in the Macro Economic Outlooks (MEV), an average increase of 2,1% is expected in 2020. This will mainly concern the active population of the Netherlands. In addition, the Minister of Finance, Wopke Hoekstra, announced that an investment fund will be established for EUR 50 billion.

The Federal Reserve intervened yesterday in the repurchase agreement market to deal with a sudden shortage in the money market. It concerns a volume of USD 75 billion. These repurchase agreements are a common approach for banks to finance the purchase of bonds.

Moody’s Investor Service changed the outlook for Hong Kong’s sovereign rating from stable to negative, a backdrop of persistent political unrest between protesters and the government. The move follows Fitch Ratings’ downgrade earlier this month on Hong Kong’s long-term foreign-currency-issuer rating to “AA” from “AA+”.

The 6M Euribor increased with 2 basis points to -0.36% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.06% 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 Tuesday 17 September 2019

Market Information Tuesday 17 September 2019

Various macroeconomic indicators show that the Chinese economy has slowed down again in August. Industrial output increased by 4.4%, lower than economists’ expectations of 5.2%. This is the lowest growth figure since 2002. Retail sales increased by 7.5%, while economists expected a growth of 7.9%. According to experts, the disappointing figures indicate that the monetary stimulus policy is not sufficient yet.

Figures published by Eurostat show that the job vacancy rate of the eurozone has remained stable in the second quarter at 2.3%. The services sector had the most job vacancies at 2.6%, while the vacancy rate in industry and construction was 2.0%

Istat has announced that inflation in Italy has remained stable in August. The inflation rate was 0.4% on a year-on-year basis. Economists expected an inflation rate of 0.5%. On a monthly basis, inflation was 0.4%, also lower than the forecast of 0.5%. Using the harmonized European measure, inflation was 0.5% on a year-on-year basis, in line with economists’ expectations.

The 6M Euribor increased with 3 basis points to -0.38% compared to previous business day. The 10Y Swap decreased with 5 basis points to -0.05% 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 16 September 2019

Market Information Monday 16 September 2019

Last Saturday drone attacks have been executed on two oil installations in Saudi Arabia. The attack was claimed by Yemeni Houthi rebels. However, the United States accuses Iran of being behind the attacks. The attack has halted approximately 5% of worldwide oil production. Analysts estimate that it will take weeks before production is fully restored. Oil prices rose sharply due to the news; Monday morning the price of a barrel of Brent oil had risen by around 9.6% to USD 66.02.

A preliminary estimate from the University of Michigan shows that consumer confidence in the United States increased slightly in September 2019. The index that measures confidence rose from 89.8 in August to 92.0 this month. Economists estimated on average an increase to 90.8.

The president of De Nederlandsche Bank (DNB) Klaas Knot has spoken out in an official statement against the newest measures of the ECB. Last week the ECB lowered the deposit rate and announced to restart its Quantitative Easing programme. According to Knot, the policy is disproportionate to current economic conditions, and there are valid arguments to question the effectiveness of the measures.

The 6M Euribor is unchanged at -0.41% compared to previous business day. The 10Y Swap increased with 8 basis points to 0.00% 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.