Market information
Tuesday, August 17, 2010
Yesterday, the minister of Finance, Mr De Jager presented a report to the House of Representatives, which described that The Dutch Central Bank get a team that will quickly intervene if a bank faces bankruptcy. As well Nout Wellink may not be candidate for a new term as director of The Dutch Central Bank. p>
The Japanese economy grew by only 0.1% in the second quarter compared to 1.1% in the first quarter. The growth was 0.5% lower than analysts had expected. Compared to the Eurozone and the United States the Japanese economy stayed behind in this quarter.p>
The main reason for the weak growth is considered the expensive yen. On August the 11th the yen reached a record high of 84.73 against the dollar since July 1995. The Japanese government will struggle to bring the yen.p>
Japan was taken over by China as the world’s second-biggest equities market by value. Last year China already became the largest consumer market for cars instead of the United States. China is expected to become the biggest economy between 2020 and 2025.
The 6-month Euribor remained unchanged at 1.15. The 10-year swap rate decreased 9 basis points to 2.56.
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).
Monday, August 16, 2010
The economic growth in countries of the euro zone varies greatly. The Netherlands and particularly Germany outperform Southern Europe considerably. The average growth in the euro zone was in the second quarter significantly higher than expected. According to Eurostat the economic growth equals 1% in the second quarter.
This is entirely due to the German economy, which had a quarterly growth of 2.2%. The Netherlands also performs well with a plus of 0.9% over the second quarter. This is in contrast with the growth in Southern Europe. Greece reported Thursday that the economy in the second quarter decreased 1.5%. Spain and Portugal reported a small growth of 0.2%. Italy is doing better with 0.4% and France grew by 0.6%.
Interest rate differentials on the euro zone capital market increased again. Against a slight decrease in the ten year rates of the German government bonds, there were increases for Greece, Spain and Portugal. This is attributed to the growth differences in Europe.
The 6-month Euribor remained unchanged at 1.15. The 10-year swap rate decreased 5 basis points to 2.65.
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).
Friday, August 13, 2010
Yesterday, in the auction for the issuing of short term debt, Ireland had to pay a higher rate than expected. There was EUR 500 million issued with maturity date February 11th 2011 and an interest rate of 2.458%. The interest rate on Irish paper, with a comparable time to maturity issued last month, was 1.367%. The immediate reason for the increase of this rate is the announcement of a capital injection of EUR 10 billion in nationalized bank Anglo Irish Bank at the beginning of this week. The expectation is that other Irish banks will follow with requests for capital injections.
The interest rate on 10-year German government bonds decreased to 2.4%. This is the lowest rates since 1989. The reason for the low interest is that German government bonds are perceived as very safe compared to other countries and that there are few countries with a similar risk.
The Dutch Central Bank is in consultation with the pension funds that are in heavy weather on the cutting of the retirement benefits and rights. The parties involved do not yet want to comment on the precise content of the conversations.
The 6-month Euribor decreased 1 basis point to 1.15%. The 10-year swap rate decreased 1 basis point to 2.70%.
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).
Thursday, August 12, 2010
Today, the European statistical office will publish figures on the economic growth in the second quarter. At the same time Germany, France, Italy, and the Netherlands will publish their own figures, which should be returned to Eurostat by tomorrow. Analysts expect a quarter-on-quarter growth of 0.7%. The growth in Germany is expected to be one percentage point higher. The expected figures are very promising because the Eurozone nearly collapsed in the second quarter under the Greek and Southern European budget problems.
Figures published by the U.S. Department of Commerce show that the U.S. trade deficit in June increased a lot stronger than analysts had expected. Analyst expected the trade deficit to amount to USD 42.1 billion in June, while the actual deficit amounts to USD 49.9 billion. In May, the trade deficit denoted USD 42 billion. U.S. exports fell by 1.3% in June, the highest decline since April 2009. Imports continued to increase in June by 3%.
The euro has fallen sharply again yesterday, the currency currently denotes less than USD 1.30. The American system of central banks, the Federal Reserve announced last Tuesday that U.S. growth decreased and the recovery is weaker than expected. This uncertainty will make U.S. investors trade their speculative investments outside of the U.S. with high returns for saver U.S. government bonds, leading to a decrease of the euro against the dollar.
The 6M Euribor remains at 1.16%. The 10-year swap decreased by 5 basis points to 2.71%.
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).
Wednesday, August 11, 2010
Yesterday the Federal Reserve announced to buy back long-term government bonds in order to stimulate the economy. The Fed deems the measurement necessary due to a slower economic recovery than expected. The interest on the ten-year government bonds decreased by nine basis points to 2.74%.
The American investor Warren Buffet warned that the huge increase of money supply will only lead to inflation. He adjusted the portfolio of his investment company Berkshire Hathaway towards increasing prices. He invested more in shorter maturities at the expense of long term bonds.
The ING indicates that the insurance activities will be stand alone by the end of the year. The split costs qualify for maximum 150 mln Euro this year. The European Commission forces ING to take these measures as a consequence of the state aid ING received in 2008.
The 6M Euribor remains at 1.16%. The 10-year swap decreases with four basis points to 2.76%..
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).
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