Market information

Thursday, September 23, 2010

Yesterday, the euro increased 2 cents compared the dollar. This occurred as a result of the news that the FED may increase the amount of money it puts in the economy. The euro exchange rate reached the highest point in five months of USD 1.342 compared to USD 1.325 the day before.

The disappointing forecasts of large technology companies have put the American markets under pressure. Also contributing to this was the message of the FED. The S & P500, Dow Jones and Nasdaq fell respectively by 0.5%, 0.2% and 0.63%.

By issuing bonds, Portugal has caused banks to bet on the wrong horse. By going for the minimum amount they had to raise, five of the fifteen banks that had the right to register and had already sold the bonds still had to buy them after the auction. This increased the rate of Portuguese government bonds to a level similar to that of strong countries like Germany and the Netherlands.

The 6 months Euribor remained at 1.14% and the 10 years swap remained at 2.68%.

In the attachment below, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: .(JavaScript must be enabled to view this email address).

Download market data

Wednesday, September 22, 2010

Yesterday, the Dutch Queen recited the annual ‘Troonrede’. She announced that diminishing the budget deficit would be inevitable. By continuing the current financial and fiscal policy the budget deficit would increase to heights that would be untenable for the future. The Head of State declared the necessity to increase the labor participation, to improve the employability of the workers and to improve the labor mobility. A conservative wage development would be an important condition for these improvements to occur.

During a policy meeting of the American Federal Reserve Bank (FED) yesterday, the Central Bank decided to leave the refinancing rate at the current level of 0.00% to 0.25%. This conclusion was expected. However, analysts were interested in the Economic outlook of the FED and any allusions on the flexibility of the national monetary policy in the near future. The Fed indicated that it is worried about a possible deflation, and is prepared to initiate stringent supporting measures if necessary. These remarks are interpreted as an indication that the FED will implement a more aggressive monetary policy.

The European exchanges were moderately positive after the successful auction of the obligation and national debt claims for Ireland, Spain and Greece. These countries managed to attract capital against favorable conditions. However, Portugal did show an unexpected increase in its budget deficit over the last 8 months towards a total of EUR 9.2 billion. This increase of the deficit is contrary to the promises that were made by Lissabon to significantly decrease the deficit this year.

Figures published by the American Ministry of Commerce show that residential construction over the course of August has increased unexpectedly. As compared to the month July the number of new housing plans increased with more than 10%.

Vattenfall, the Swedish energy company that acquired Nuon last year, announced yesterday that it will start with a large reorganization. These measures are seen as a logical consequence of the enormous expansionary drift that the company has cherished the last few years. The board of Vattenfall wants to decrease the debt position by investing less and cut jobs. These measures will also affect the Dutch business.

The 6 months Euribor remained at 1.14% and the 10 years swap decreased with 7 basis points towards 2.68%.

In the attachment below, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: .(JavaScript must be enabled to view this email address).

Kind regards, Tom Gerritsen

Download market data

Tuesday, September 21, 2010

Today, the Dutch Cabinet announces the government budget for the coming year. The latest outcomes on the Dutch purchasing power by the Netherlands Bureau for Economic Policy Analysis indicates a decrease of 0.25% next year.

Yesterday, the National Bureau of Economic Research (NBER) announced that the American economy is no longer in recession. The recession lasted for a period of 18 months and lasted thereby longer than the recessions in the 1970s and 1980s.

Today, Ireland issues sovereign debt with a total size of EUR 1.5 billion. Due to a lack of confidence in the recovery of the Irish economy and its overall public finances expectations are that Ireland will face high yields on the sovereign debt it intends to issue.

The 6M Euribor and 10Y Swap remain unchanged at 1.14% and 2.75%, respectively.

Download market data

Monday, September 20, 2010

As of January 1st 2010 Dutch pension funds want to decrease the building of pension claims while the level of premiums will be maintained. One of the main reasons is the fact that the Dutch live expectancy has increased. Therefore the premiums would have to increase with an average of 5% next year. However, the funds choose to let the current generation pay the price by not increasing their claims.

On the stock markets worldwide investors are mainly watching the decisions of the Fed, the U.S. central bank. Also the development of the real estate market is being tracked closely. Until these figures come out, the expectation is that the AEX will start this week quietly: the Dow Jones closed unchanged on Friday and the Tokyo Exchange is closed on Monday.

The 6M Euribor remained unchanged at 1.14%. The 10Y Swap decreased 1 basis point to 2.75%

Download market data

Friday, September 17, 2010

The number of jobless claims in the United States unexpectedly fell last week. The number of new benefit claims decreased in the week ended September 11 with 3,000 to 450,000. Although an increase of 9,000 was accounted for.

European government bonds closed lower on Thursday. The price dropped notably by better than expected figures on applications for new benefit claims in the United States. The bond market was also depressed by a well-received auction of Spanish loans. Spain successfully placed a 10-year and 30-year loan. The interest that Spain has to pay is lower than for the previous auction.

The AEX-index decreased yesterday minimal, the day was characterized by little news. The AEX closed at 334.67 points, a decrease of 0.4%.

The 6M Euribor remained unchanged at 1.14%. The 10Y Swap increased 5 basis points to 2.67%.

In the attachment below, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: .(JavaScript must be enabled to view this email address).

Download market data

Page 2 of 5 pages
< 1 2 3 4 > Last »