Market Information Tuesday 10 December 2019

Market Information Tuesday 10 December 2019

The World Trade Organization (WTO) will not be able to function properly as of today. In the last two years, the United States have blocked the elections of new judges for the highest council within the WTO. The term of two of the three remaining members is ending today, which results in a shutdown of the Appellate Body. The council is required to exist of at least three and at most seven members in order to make a verdict. This council makes the final decision on trade conflicts under the supervision of the WTO.

The Chinese National Bureau of Statistics reported that inflation in China in November amounted to the highest level in the last seven years, namely 4.5% on an annual basis. The inflation is mainly caused by the high increase in pork prices, which in turn is caused by the African swine fever epidemic in the country. In October the inflation amounted to 3.8%.

The German export have increased considerably in October, while economists were expecting a small decrease. According to the German Federal Statistical Office the export increased in October with 1.2% to an amount of EUR 119.5 billion in comparison to the previous month. Economists were expecting a decrease of 0.3%. In September the export increased by 1.5%.

The 6M Euribor increased with 1 basis point to -0.33% compared to previous business day. The 10Y Swap decreased with 1 basis point to 0.10% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Monday 9 December 2019

Market Information Monday 9 December 2019

Based on research of De Nederlandse Bank (DNB), Dutch companies save much more compared to companies in other European countries. The payout ratio of dividends for Dutch companies is 49%, while the average payout ratio in the euro area is 83%. According to DNB, tax incentives cause that these entrepreneurs hoard much of their profits.

Exports of Chinese goods decreased again in November, according to figures published by the Chinese government on Sunday. The decrease was 1.1% compared to November 2018. This is not in line with the expectations of economists, because American and European companies increase their purchases for the coming holidays. This is the twelfth month in a row that the export of products in China is decreasing.

This week the Federal Reserve and the European Central Bank (ECB) will announce their final interest rate decision of the year. For the ECB this will be the first interest rate decision by new bank president Christine Lagarde. The Federal Reserve decides on interest rates on Wednesday, the ECB on Thursday.

The 6M Euribor is unchanged at -0.34% compared to previous business day. The 10Y Swap is unchanged at 0.11% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Friday 6 December 2019

Market Information Friday 6 December 2019

The European Union does not allow cryptocurrencies as a payment method until the risks, rules and supervision are properly established and addressed. This is described in a joint statement from EU Finance Ministers. According to these Ministers, without legal measures there are huge risks with cryptocurrency for consumers and investors, but also for financial and monetary stability.

Credit rating agency Moody’s has decreased its expectations for the global banking sector. Moody’s stated that the outlouk goes from stable to negative, because of the weaker state of the global banking sector due to lower economic growth and interest rate developments.

Based on definitive figures from Eurostat, the eurozone economy increased by 0.2% in the third quarter compared to the second quarter in line with the first estimate. The gross domestic product (GDP) in the third quarter increased by 1.2% compared to previous year.

The Chinese department of Trade reported that China and the United states are maintaining close contact regarding a partial trade agreement between the countries. Tariffs must be decreased proportionally to come to a partial trade agreement. The agreement was planned for November 2019. If there is no agreement before December 15th, additional tariffs will be levied on Chinese goods.

The 6M Euribor decreased with 1 basis point to -0.34% compared to previous business day. The 10Y Swap increased with 2 basis points to 0.11% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Thursday 5 December 2019

Market Information Thursday 5 December 2019

Statistics Netherlands reported that the consumer price index (CPI) in the Netherlands fell in November 2019 compared to the previous month. The CPI fell from 2.7% on an annual basis in October to 2.6% on an annual basis in November. Based on the harmonized European measurement method (HICP), the price index fell from 2.8% in October to 2.6% in November.

Final figures from market research firm Markit show that activity in the European services sector fell in November 2019 compared to the previous month. The purchasing managers index fell from 52.2 in October to 51.9 in November. However, the final figures for November are more positive than in an earlier forecast, when a state of 51.5 was reported. The sub-indexes for Germany and the United Kingdom in particular improved considerably compared to the earlier estimate.

Yesterday, The British pound reached its highest value against the euro in two and a half years. The price increase was largely caused by investor optimism as a result of new polls in the United Kingdom. The polls showed that the Conservatives might be heading for an absolute majority in the British parliament. This means that the chance that Boris Johnson will guide his Brexit deal through parliament has risen sharply, and the chance of a no-deal Brexit has therefore shrunk further. The British pound closed at GBP / EUR 1,183 yesterday, 0.9% higher than the day before.

The 6M Euribor increased with 2 basis points to -0.33% compared to previous business day. The 10Y Swap increased with 3 basis points to 0.09% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Wednesday 4 December 2019

Market Information Wednesday 4 December 2019

Credit rating agency Moody’s has become more negative on the UK banking sector. Moody’s has cut its outlook on British banks from stable to negative. The deteriorating operating environment has a negative impact on their asset quality and profitability. Additionally, the financial institutions are affected by low interest rates and increasing competition on the mortgage market.

United States (US) President Donald Trump signalled he would be willing postpone signing a trade agreement with China until after the US presidential elections in 2020. Trump announced, before the NATO-summit in the UK, that he does not have a deadline for a deal with China. The announcement increases the possibility of new US trade tariffs on 15 December 2019 on USD 160 billion worth of goods from China.

Producer prices in the Eurozone increased by 0.1 percent in October 2019 compared to the previous month, according to figures published by the European statistics bureau Eurostat. In September prices also increased by 0.1 compared to the previous month.

The 6M Euribor decreased with 1 basis point to -0.35% compared to previous business day. The 10Y Swap decreased with 6 basis points to 0.06% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.