Market Information Thursday 21 June 2018

Market Information Thursday 21 June 2018

The International Monetary Fund (IMF) has agreed upon the emergency credit of 50 billion US dollars for Argentina in the coming three years. The Argentine government had asked the IMF for assistance in order to support the peso and contain the economic crisis. The loan of 50 billion US dollars is the largest in the history of the IMF. Argentina can immediately make use of 15 billion US dollars, of which half is meant to finance the budget deficit.

According to the United States (US) real estate association, the sales of existing housing in the US has decreased by 0.4% in May 2018 compared to April 2018. The sales amounted to 5.43 million houses on a yearly basis, against 5.45 million in April. Economists expected a sales increase of 1.1%, amounting to 5.52 million houses.

In May 2018, unemployment in the Netherlands has stabilized. In the fifth month of the year, authorities counted 352,000 unemployed, which contributes to 3.9% of the working population. In April 2018, the unemployment rate was the same, according to Statistics Netherlands (CBS).

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap increased with 2 basis points to 0.90% 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. For more history of these rates or other rates feel free to ask: update@zanders.eu.

Market Information Wednesday 20 June 2018

Market Information Wednesday 20 June 2018

According to the German Federal Statistical Office Destatis producer prices in Germany increased by 0.5% in May 2018 compared to the previous month. Economists had expected an increase of 0.4%. On an annual basis the producer prices increased with 2.7% in May 2018.

Figures from the Dutch Central Bureau of Statistics (CBS) show that Dutch companies have purchased more services from foreign companies in recent months, mainly in the marketing and brokerage services. In the first quarter of 2014, Dutch companies spent EUR 0.75 billion on advertising agencies and market research (marketing) compared to EUR 2.2 billion in the first three months of 2018. The purchase of business advice and public relations (brokerage service) almost doubled from EUR 1.1 billion to EUR 2.0 billion in the same period.

Based on the yearly report of the European Union Chamber of Commerce (EuCham) on the confidence among the members, it appears that 61% of the respondents now believe that Chinese companies are just as innovative as companies from Europe. Last year that was less than 50%.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap decreased with 3 basis points to 0.88% 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. For more history of these rates or other rates feel free to ask: update@zanders.eu.

Market Information Tuesday 19 June 2018

Market Information Tuesday 19 June 2018

The Organization of the Petroleum Exporting Countries (OPEC) is preparing an agreement to increase the production of oil. Currently, OPEC members and several other countries, including Russia, are producing 32 million barrels of oil per day. Saudi-Arabia and Russia, however, are aiming for a production increase of 1.5 million barrels. Other OPEC members, including Iran and Iraq, intend to veto the production increase at the next OPEC meeting, this Friday. The OPEC is working on a compromise in which the oil production will increase with a maximum of 0.6 million barrels each day. The OPEC members will also discuss the role of Russia in the organization, which so far is not a member of OPEC, but does support the agreement to limit the production of oil, that the OPEC member states enacted in 2016.

According to a report by CPB Netherlands Bureau for Economic Policy Analysis, economic growth in the Netherlands will slow down to 2.9% in 2018 and 2.7% in 2019. Last year, economic growth reached peak levels at 3.2%. CPB further expects inflation to rise to 2.3% in 2019, while unemployment will decrease to 3.4% of the labor force. Last week, the Dutch central bank issued a report with a similar outlook for 2018 and 2019.

In the first quarter of 2018, the job vacancy rate in the Eurozone was 2.1%, up from 2.0% in the final quarter of 2017. The job vacancy rate was highest in services, at 2.4%. According to Eurostat, the vacancy rate was lowest in industry and construction, at 1.9%. In the Netherlands vacancies amounted to 2,8% of the work force in the first quarter of 2018.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap decreased with 1 basis point to 0.91% 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. For more history of these rates or other rates feel free to ask: update@zanders.eu.

Market Information Monday 18 June 2018

Market Information Monday 18 June 2018

According to figures from the Japanese government, Japan’s exports increased in May 2018. Exports increased by 8.1% on an annual basis. Economists expected an increase of 7.5% on export. Imports of Japan increased by 14% in May 2018, after an increase of 5.9% in April 2018.

Monday investors showed concerns about the intensifying confrontation between the U.S. and China which resulted in stock market decreases in Asia. From July 6, President Donald Trump will increase import duties by $ 50 billion. China responded by putting an additional 25% levy on U.S. agricultural and auto exports.

Figures published by Statistics Netherlands show that revenues from exports of products and services to the United Kingdom decreased by 0.4% in 2017 compared to 2016. These revenues amounted to EUR 22.7 billion. Export earnings in 2017 amounted to 3.1% of the Dutch GDP.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap decreased with 3 basis points to 0.92% 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. For more history of these rates or other rates feel free to ask: update@zanders.eu.

Market Information Friday 15 June 2018

Market Information Friday 15 June 2018

Yesterday, the European Central Bank announced to stop its Quantitative Easing programme. The current programme of EUR 30 billion per month will be reduced to EUR 15 billion per month in October 2018, after which the program will be discontinued by the end of this year. A precondition is that current economic developments continue in line with the expectations of the ECB. ECB-president Mario Draghi said in a statement that the ECB will maintain its main interest rate at 0.00%, until at least the summer of 2019. If economic conditions deteriorate due to e.g. Brexit or a trade war with the US, the purchase program will be re-established. The EUR/USD exchange rate dropped to a level below 1.16 after Draghi’s speech.

The Bank of Japan (BoJ) left its main interest rate unchanged at -0.1%. In addition, the BoJ announced that the bank lowers its inflation expectations to a range of 0.5% to 1.0%. According to BoJ governor Haruhiko Kuroda, the lower inflation expectation was the most important reason to also keep the Quantitative Easing programme of JPY 80 trillion per year in place. According to Kuroda, the BoJ is still hopeful that inflation will eventually move towards the inflation target of 2%.

On Friday morning Bloomberg reported that President Trump has given his approval for import duties on Chinese goods, with a net value of USD 50 billion. Earlier had already been leaked that the US government is considering import duties against more Chinese products. A precise date on when the import duties will take effect is at this point unknown. The measures are likely to provoke new countermeasures by the Chinese government against the US.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap decreased with 4 basis points to 0.95% 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. For more history of these rates or other rates feel free to ask: update@zanders.eu.