Market information

Thursday, March 08, 2012

Industrial orders in Germany fell by 2.7% in January 2012 compared to December 2011 on a seasonally and price-adjusted basis, according to the German Ministry of Economics and Technology. Economists had forecasted a 0.5% rise. The fall in orders was driven by a decline in orders from abroad by 5.5%, mainly caused by a decrease in orders from outside the euro zone.

ADP announced yesterday that 216,000 jobs were created in the American private sector in February 2012, an increase compared to the 173,000 jobs created in January 2012. The United States Department of Labour will publish its job report and the unemployment rate on Friday, this figure is considered to be an important indicator.

In New York the Dow Jones closed with a gain of 0.61% at 12,837.33, the S&P500 increased by 0.69% to 1352.63. In Amsterdam the AEX closed 0.66% higher at 319.64.

The 6M Euribor decreased by 1 basis point to 1.22%. The 10Y Swap decreased by 1 basis point to 2.25%.

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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Tuesday, March 06, 2012

Greece has until Thursday next to reach an agreement with the banks on their debt restructuring. The Institute of International Finance (IIF) already reached an agreement with Greece during the negotiations of the new emergency package, however the banks must also individually come to an agreement. Yesterday twelve European banks promised to take a loss of 53% on the Greek bonds whichthey have in their possession. The banks will exchange the Greek bonds they have for new bonds with lower value and a lower coupon rate.

Rabobank’s Bond Specialist Lyn Graham Taylor believes that the market for credit default swaps is undermined. Investors use credit default swaps to protect themselves against default. A voluntary contribution of banks to Greece is not a default which means that the insurance will not pay out. Consequently few people will believe that a credit default swap offers good protection against default by governments.

The reduced growth target for China this year and the uncertainty regarding the Greek debt restructuring resulted in losses at European stock exchanges. The AEX index closed 0.7% lower and the stock exchanges in Paris, London and Frankfurt lost between 0.4% and 0.8%.

The disappointing figures on U.S. factory orders (declined by 1%) in January and the reduced growth target of China prompted caution among investors On Wall Street. The Dow Jones Index lost 0.1% and the broad-based S & P 500-index closed 0.4% lower. In Tokyo, the Nikkei closed 0.6% lower.

The 6M Euribor decreased by 1 basis point to 1,24%. The 10Y Swap remained unchanged at 2,23%.

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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Friday, March 02, 2012

In a more detailed explanation of the central planning bureau, the Dutch budget deficit will be € 16 billion in order to reduce to 3% of GDP in 2013. This is significantly higher than the € 9.4 bn that was published Thursday morning. This is due to fact that additional cuts lead to lower growth of government spending, less income and expenditure of citizens and to lower tax revenue of the State. From 2013 the Dutch economy is expected to recover slowly with a gross domestic product (GDP) growth of 1 ¼% in 2013.

Yesterday the President of the euro group announced that the Greek Government has adopted all the required legislation and initiated the legislation with regard to the budget, tax collection, pension reforms and control of the financial sector. This allows the EFSF to start borrowing money for the fixed contribution of € 30 bn which the EU countries contribute to the reorganization of the Greek public debt. Additionally the ECB receives guarantees of € 35 billion of the emergency facility for the write-down of Greek bonds.

Due to the refinancing operation last Wednesday by the ECB, the European stock markets closed higher on Thursday. AEX ended with a gain of 0.7% at 326,55 points.

The 6M Euribor decreased by 1 basispoint to 1.27%. The 10Y Swap remained unchanged at 2.25%.

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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