Market information
Thursday, March 01, 2012
This morning The Netherlands Bureau for Economic Policy Analysis (CPB) published the draft figures for the Central Economic Plan 2012 (CEP). The Dutch economy will decrease by 0.75%, the economic growth in 2013 will be 1.25%. The forecasted Dutch budget deficit will 4.5% (EUR 28 billion), EUR 9 billion higher than the EMU deficit-ceiling. The final forecasts of the CPB (CEP 2012) will be published on March 20th.
The Chinese PMI-index in February 2012 rose from 51.0 to 50.5 according to the Chinese Bureau of Statistics. This is a further rise above the break even line of 50.0, this PMI-index is the highest since September 2011. Analysts had expected an increase of up to 50.9.
The AEX in Amsterdam decreased by 0,40% to 324.25 points. The Dow Jones closed at 13,952.07, a decrease of 0.41%. The S&P decreased by 0.67% to 1,365.68.
The 6M Euribor decreased by 1.28%. 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).
Wednesday, February 29, 2012
The European Central Bank announced yesterday it will suspend the use of Greek governments bonds as collateral for ECB loans. This action of the ECB was triggered by the downgrade of Greece’s credit rating by S&P on Monday.
The Determinations Committee of the International Swaps and Derivatives Association (ISDA) will hold a meeting on March 1st to determine whether the restructuring of the Greek debt qualifies as “credit event”. A credit event could trigger pay-outs under Credit Default Swaps (CDS’s).
The consumer climate in Germany slightly improved according to GfK, the AEX in Amsterdam increased by 0.57% to 325.55. The Dow Jones closed at 13,005.12, an increase of 0.18%. The S&P increased by 0.34% to 1,372.18.
The 6M Euribor remained unchanged at 1.29%. The 10Y Swap increased by 1 basis point to 2.26%.
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, February 28, 2012
The Spanish budget deficit in 2011 amounted 8.51% of Gross Domestic Product (GDP). This is higher than the previous estimate of 8.2% and substantially higher than the target of 6.2%. In 2010 the budget deficit was 9.3% of GDP. The target for the budget deficit for 2012 is 4.4% of GDP. In order to reach that goal, Spain will need to cut back another EUR 40 billion.
The interest rates on Italian government bonds declined Monday to its lowest level in a year. Italy sold EUR 8.3 billion of bonds with a maturity of 6 months at an interest rate of 1,2%. In late January the interest rate on 6 month bills amounted 2%. EUR 3.5 billion was collected with a maturity of 295 days at an interest rate of 1.3%. The demand was 1.4 times larger than the previous auction. The interest rates on Italian government bonds have declined since the appointment of Premier Mario Monti in 2011.
Standard & Poor's (S&P) has lowered Greece's credit rating to "Selective Default". This means that the country fails to repay certain debts. The bond loans that are part of the debt swap with private parties have been reduced to a "Default" rating. After the debt exchange is completed S&P expects to increase the rating to CCC.
The German parliament has agreed with the second package for financial aid to Greece amounting EUR 130 billion. Out of all the present parliamentarians, 496 voted for, 90 against and 5 abstained.
The 6M Euribor decreased by 1 basis point to 1.29%. The 10Y Swap decreased by 4 basis points 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).
Monday, February 27, 2012
The 20 leading world economies declared during the G-20 summit in Mexico that they are willing to give extra money to the IMF. The IMF can use this money to intervene in the European financial markets. Condition of this increase is that Europe increases its emergency fund first. An option will be to merge the temporary emergency fund EFSF and the permanent emergency fund ESM, which will start on July 1st. This means that the emergency fund increases to EUR 750 billion. Germany has always been a major opponent of increasing the European emergency fund. Germany fears that increasing the emergency fund indicates that there are more problems coming up. Germany is also worried that the weak euro countries feel less pressure to get their financial household in order.
Thursday and Friday, March 1 and 2, the EU finance ministers will meet again. Top priority during this meeting will be increasing the emergency fund.
Wednesday, the ECB will provide banks for the second time with unlimited three-year credits at a rate of 1%. The first time was in December and has been seen as a major reason for the decline of the turmoil in the financial market. The banks then underwrote nearly EUR 500 billion. Investors are wondering to what extent banks will write in on these credits next Wednesday. According to chief economist Thomas Mayer of Deutsche Bank, this will be the last funding operation of the ECB.
The 6M Euribor decreased by 1 basis point to 1.30%. The 10Y Swap decreased by 1 basis point to 2.29%.
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, February 24, 2012
In December 2011 household consumption in the Netherlands was down by 1.3% compared to December 2010 according to the Netherlands Bureau of Statistics. This statistic has been adjusted for price changes and differences in the shopping-day pattern. The decline was less than expected by analysts as they expected a decline of 1.8%.
The economy of the Netherlands will decrease by 0.9% in 2012 according to the European Commission(EC). In December 2011 the Netherlands Bureau of Policy Analysis (CPB) forecasted a 0.5% decline for the Dutch economy in 2012. The EC expects the economy of the eurozone to decrease by 0,3%.
The Dow Jones increased by 0.36% to 12,984.69 and the S&P increased by 0.43% to 2,956.98. The AEX in Amsterdam decreased by 0.2% to 326.22.
The 6M Euribor decreased by 1 basis point to 1.31%. The 10Y Swap decreased by 2 basis points to 2.30%.
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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Shift towards an American funding model
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risk management, credit ratings, credit rating, Basel III
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