Market Information Friday 17 January 2020

Market Information Friday 17 January 2020

The Chinese economy grew by 6.1% in 2019 compared to 2018. This is the lowest growth rate in 29 years. The second largest economy in the world had to deal with the effects of a long trade war with the United States throughout the year. In addition, increasing debts and a weakening domestic demand played a role in the low growth rate. Industrial production and retail sales increased more than expected in December 2019.
Earlier this week, US President Donald Trump and Chinese Deputy Prime Minister Liu He signed a partial trade deal. This indicates a step back in their trade war that started a year and a half ago.

The Nikkei closed on Friday with a win. The Japanese stock market entered the weekend at 24,041.26 points and reached the highest level in fifteen months. A decrease in the Japanese yen helped exporting companies. The Japanese index increased over 0.8% this week, which was dominated by the signing of the trade agreement between the United States and China.

Figures from the US Department of Commerce show that retail sales in the United States increased by 0.3% in December 2019 compared to November 2019. Over the whole of 2019, retail sales in the world’s largest economy increased by 3.6%.

The 6M Euribor is unchanged at -0.33% compared to previous business day. The 10Y Swap decreased with 1 basis point to 0.15% 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 16 January 2020

Market Information Thursday 16 January 2020

The President of the United States Donald Trump and the Chinese Vice-Premier Liu He have signed the so called ‘Phase 1 trade deal’. With the agreement China promises to purchase more US goods, including billions of dollars extra of farm products. Furthermore, China promises to improve intellectual property protections and market access for foreign participants to Chinese financial markets. The US promises to withhold an earlier announced new round of import tariffs. Future negotiations will probably take some time to start. Trump recently said that a Phase 2 trade deal will start after the US presidential elections in November.

According to statistics Netherlands, the number of employed people in the Netherlands increased in the last three months with on average 17,000 per month and reached 9 million persons in December for the first time. The number of unemployed people decreased in the last three months to 302,000 in December. The unemployment rate reached a level of 3.2%.

In 2019, the German economy experienced the weakest growth in six years. According to preliminary figures of the German federal statistics bureau the economy had a growth of 0.6%. The global trade tensions and the weak German car industry led to a difficult year for the German economy. Furthermore, uncertainty on Brexit and a slowing world economy diminished growth. In 2018 the German economy had a growth rate of 1.5% and in 2017 a growth rate of 2.5%.

The 6M Euribor decreased with 1 basis point to -0.33% compared to previous business day. The 10Y Swap decreased with 3 basis points to 0.16% 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 15 January 2020

Market Information Wednesday 15 January 2020

Figures from the US government show that inflation in the United States increased to 2.3% year-on-year in December, compared to 2.1% in November. Economists expected inflation to reach 2.4%. Core inflation, excluding fluctuating energy and food prices, was stable at 2.3%.

According to Statistics Netherlands (CBS), the volume of goods exports in November 2019 was 4.1% higher than in November 2018. The volume of goods exports was particularly higher for petroleum products and machinery. The volume of imports was 6.3% higher in November than a year earlier.

CBS reports that the retail trade turnover in November 2019 was 2.6% higher than in November 2018. The volume of sales was 1.4% higher. Both the food and non-food sectors reported increased revenues. In addition, online revenues were 6.5% higher.

The 6M Euribor increased with 1 basis point to -0.32% compared to previous business day. The 10Y Swap is unchanged at 0.19% compared to previous business day.

Market Information Tuesday 14 January 2020

Market Information Tuesday 14 January 2020

The Chinese government has reported that China’s exports increased in December 2019 by 7.6% compared to the same month a year earlier, a positive surprise after a contraction of exports in November. Imports also rose sharply, with a 16.3% growth in December 2019 compared to December 2018. Trade in goods was boosted by the provisional trade agreement between China and the United States, which was agreed last month.

The Organization for Economic Cooperation and Development (OECD) expects economic growth in most major economies to remain stable over the next six to nine months. According to the OECD, economic indicators indicate that there will be stable growth in the coming period in Japan, Canada, the Eurozone, China, the United States and Russia. Furthermore, the economy of Brazil is increasingly showing signs of growth, while the growth rate of Indian economy is declining.

The British National Statistical Office has announced that the UK economy contracted by 0.3% on a monthly basis in November 2019. For October 2019, the growth rate was adjusted to 0.1% on a monthly basis. Economists estimated on average a growth of 0.1%. The disappointing figure may cause the Bank of England (BoE) to lower interest rates on 30 January. Various policymakers have already indicated that they will vote for an interest rate cut if no signs of economic progress are visible.

The 6M Euribor is unchanged at -0.33% compared to previous business day. The 10Y Swap increased with 3 basis points to 0.19% 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 13 January 2020

Market Information Monday 13 January 2020

Based on figures published by Statistics Netherlands (CBS) this morning, the number of bankruptcies increased in 2019 compared to 2018. In 2019, 3,208 companies and institutions were declared bankrupt. This is 2.0% more than in 2018. The increase of the number of bankruptcies was most notable in specialist business services.

Gertjan Vlieghe, member of the Monetary Policy Committee of the Bank of England (BoE), informs the Financial Times that he will vote for an interest rate cut later this month. The BoE has an interest rate meeting on January 30, currently the most important interest rate is 0.75%. According to Vlieghe, there must be a significant improvement in the economy in order to postpone an interest rate cut. Mark Carney, the Governor of the BoE, came earlier with a similar conclusion.

Employment in the United States increased at a lower rate in December than expected. Figures from the US Department of Labor show that 145,000 jobs were created in December, excluding the agriculture sector. In November, US employment increased by 256,000 jobs.

The 6M Euribor is unchanged at -0.33% compared to previous business day. The 10Y Swap is unchanged at 0.16% 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.