Market information
Friday, May 11, 2012
According to the Organization for Economic Cooperation and Development (OECD) the economic growth in the Euro zone will be below average in the coming months. However, differences between countries in the Eurozone exist. The Italian and French economies will probably shrink, while in other European countries, the economy will grow slightly.
According to figures published by the Greek statistical office the unemployment rate in Greece rose to 21.7% of the workforce in February. This is a new record high and it means that more than a million Greeks are without a job.
According to figures from the U.S. Department of Labor the number of jobless claims in last week has slightly reduced to 367,000 claims compared to last week’s 368,000 applications. The number of claims is in line the expectations by analysts.
The 6M Euribor remained unchanged at 0.98%. The 10Y Swap decreased by 5 basis points to 2.03%.
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, May 10, 2012
In April, the growth rates of both Chinese imports and exports have considerably declined according to figures provided by the Chinese customs. Exports increased by 4.9% year-on-year in April. In March the increase in exports was still 8.9% year-on-year. Imports grew by just 0.3% year-on-year in April compared to an increase of 5.3% in March. Herewith, Chinese imports remained far below the forecasted 11% by economists.
The government leaders of the Euro zone have decided to withhold Greece a part of the agreed funding tranche which should be payed today. The amount withheld is EUR 1 billion on a total of EUR 4.2 billion. The pressure on Greek politicians to form a coalition is increasing.
The Spanish government has partially nationalized the Spanish banking group BFA. Spain will be the largest shareholder with a 45% stake in the BFA group and its distressed daughter Bankia. BFA is the fourth largest bank in Spain.
The 6M Euribor remained unchanged at 0.98%. The 10Y Swap increased by 2 basis points to 2.08%.
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, May 09, 2012
Yesterday The German Ministry of Economic Affairs announced that the industrial production in Germany in March 2012 increased by 2.8% compared to February 2012. Analysts say this would indicate a possible growth of the German economy in the first quarter of 2012, thus avoiding a technical recession.
The bail-out fund for eurozone countries, the EFSF, collected EUR 1.96 billion in 3-month bonds by auction yesterday. The average yield on the bonds was 0.172%. This is higher than for an issue of three-month bonds last month when the average yield was 0.112%. The auction was organized by the German Central Bank.
Concerns about the political situation in Greece led to losses on the major stock exchanges. The Dow Jones declined by 0.59% to 12,932.09, the S&P 500 closed at 1,363.72 with a loss of 0.43%. The AEX in Amsterdam declined by 1.18% and closed at 300.59.
The 6M Euribor remained unchanged at 0.98%. The 10Y Swap increased by 1 basis point to 2.06%.
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).
Tuesday, May 08, 2012
The European Central bank did not buy new treasury bonds in order to support the sovereign debt market. The ECB started this program in May 2010, however they did not enter into this kind of buying transactions for 8 weeks in a row. In 2 years time, the ECB bought sovereign debt for 214 billion euro.
Data from the Federal Reserve showed a jump in credit consumption in March 2012. Consumers began using their credit cards again, while student loans and new-car loans increased by the highest rate since late 2001. Total consumer credit grew by $21.36 billion, more than twice what Wall Street economists had expected. Moreover, last week the Fed declared that banks were more willing to lend money. These are all hopeful signs indicating expansion as credit standards had tightened sharply after the start of the banking crisis in 2007.
On Monday, the Spanish Prime Minister will use tax money to rescue Spain’s third biggest bank Bankia SA. The shares of Bankia SA dropped 3.3% shortly after opening. Spain’s country risk, measured by the spread of 10Y bond yield between Spain and Germany, rose up to 429 basis points. Spain has already spent more than 18 billion euro to clean up its financial institutions.
The 6M Euribor decreased with 1 basis point to 0.98%. The 10Y Swap decreased by 1 basis point to 2.05%.
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, May 07, 2012
France has elected the socialist Francois Hollande as the new president of France with 51.7% of the votes. By electing Hollande, France has moved towards left-wing politics. Among other things, Hollande has promised to increase taxes for the rich and to create jobs and maintain social benefits through the money raised by the imposed taxes. Hollande also promised to lower the retirement age back to 60 years. The leftist politics in France may also have major implications for the direction of the European Union. Hollande has already announced that he wants to adjust the budget treaty from the EU to realize more economic growth for France. To achieve this, Hollande will have to cooperate with German Chancellor, Angela Merkel.
In Greece, the political landscape also changed this weekend. As a result of a significant loss of support for the established parties, less support remains for the recovery plan of the EU and the International Monetary Fund for Greece. The big winners of the elections are the radical left party Syriza, Independent Greeks and the Golden Dawn.
According to Bloomberg, the U.S. trade deficit rose in March rose to USD 50 billion, a decrease of USD 4 billion compared to February. Thursday, the government will present the official figures. The expected trade deficit is the result of both higher imports and lower exports. The imports rose mainly due to the increase in oil prices whereas exports fell because American companies struggle to sell their products overseas as a result of the global economic crisis.
The 6M Euribor remained unchanged at 0.99%. The 10Y Swap decreased by 3 basis points to 2.06%.
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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