Market information

Tuesday, November 08, 2011

On the bond markets, the yields keep rising on Italian government bonds. Yesterday, the interest rate on a ten-year Italian government bond rose to 6.66%. This is a new record high since the introduction of the Euro. The interest rates on Italian sovereign debt have reached the same level at which Greece, Portugal, and Ireland ultimately appealed to additional support. Meanwhile, the pressure on Prime Minister Berlusconi to resign is rising. Today the Italian parliament will vote on a new package of austerity measures.

Greece is still forming a government of national unity. Analyst expects that the new prime minister and successor of George Papandreou is announced today. The Ministers of Finance of the Euro countries have already demanded full commitment of the two major Greek parties to execute the austerity and reform package, as presented by the International Monetary Fund (IMF) and the Euro zone.

Despite all the negative reports from Europe stock markets in the United States gained. The S&P 500 index rose 0.63% to 1261.12 points. The Dow Jones index increased 0.71% and closed at 12,068.39 points. In contrast, the European stock markets closed at a loss yesterday. In Amsterdam the AEX index closed with a loss of 0.74% at 299.75 points.

The 6M Euribor remained unchanged at 1.70%. The 10Y Swap increased by 1 basis point to 2.50%.

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, November 04, 2011

Thursday, the ECB announced a decrease of a quarter percentage point to 1.25% of the key refinancing rate. The new president of the European Central Bank (ECB), Mario Draghi, stressed a sombre outlook for the European economy in his explanatory statement.

The debt crisis continues to pressure the interbank money market. Eurozone banks deposited the largets amounts of overnight funds at the ECB this year, signaling that banks are hesitant to lending to each other on the interbank market. Eurozone banks deposited 253 billion euros for 24 hours at the ECB, due to concerns regarding the eurozone debt crisis.

There is again an upturn on the European stock exchanges. Thursday, the Greek Prime Minister, George Papandreou, announced the withdrawal to hold a referendum on the adoption of a European rescue plan for the debt crisis in Greece. Additionally, the ECB unexpectedly reduced the key interest rate in the Euro area. The European indicators were already positive by the rumors of the possible resignation of the Greek prime minister. In Amsterdam the AEX index closed 2,10% higher at 304,50 points. The stock exchanges on Wall Street also closed higher due to the news from Greece. The Dow Jones closed 1.80% higher at 12044,47 and the S&P 500 closed 1.88% higher at 1261,15.

The 6M Euribor remained unchanged at 1.78%. The 10Y Swap increased with 8 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).

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Wednesday, November 02, 2011

The Greek Minister Papandreou got unanimous support from his ministers to hold a referendum on the European emergency package. This was the result of a 7 hour meeting last night. European leaders are not amused with the referendum. Also the reactions elsewhere in the world were negative.

The Federal Reserve will make decision on its interest rates tonight. The last two times the Fed took action because of the deteriorating economy. In August, the Fed promised to keep its interest rates low until mid 2013. In September, the Fed undertook a so-called "Twist". Analysts expect that the Fed will not take any major decisions this time.

The positive spirit on the European stock exchanges changed completely after the news on the referendum yesterday. The AEX lost 3.7%, Paris lost 5.0% and the stock exchange in Frankfurt lost 5.4%.

Especially banks and insurers were hit hard yesterday. The banks and insurers with the biggest amounts of Greek government bonds performed the worst because of increasing concerns of investors over a Greek bankruptcy.

Also on the U.S. stock exchange, the Greek referendum caused substantial damage. The Dow Jones index closed at a loss of 2.5%, S & P 500 lost 2.8% and the Nasdaq lost 2.9%. The Nikkei in Tokyo closed 2.2% lower.

The 6M Euribor decreased by 1 basis point to 1.78 %. The 10Y Swap increased by 2 basis point to 2.49%

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