Market Information Thursday 31 May 2018

Market Information Thursday 31 May 2018

Despite the political turmoil in Italy, Italy succeeded to sell EUR 5.6 billion in new government bonds yesterday. Investors demanded higher interest rates than a few weeks ago. The Italian government auctioned three types of bonds: € 1.75 billion on five-year loans, € 2 billion on seven-year loans and € 1.8 billion on ten-year loans.

According to Federal Statistical Office (Destatis), Germany’s inflation increased above 2% for the first time since more than year. The increase in consumer prices in May 2018 amounted to 2.2%, in comparison with 1.4% in April 2018. The rapid increase in oil prices is the main cause of the rising inflation.

A new estimate by the French statistics agency Insee shows that the growth of the French economy decreased further in the first quarter of 2018 compared to the last quarter of 2017. In the first quarter of 2018 the economic growth was 0.2%, against 0.7% a quarter before. Economists expected a growth rate of 0.3%.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap increased with 5 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 Wednesday 30 May 2018

Market Information Wednesday 30 May 2018

Statistics Netherlands stated that producer confidence increased in May 2018 compared to April 2018. The index increased from 8.2 in April 2018 to 9.8 this month. At this level, the producer confidence index in May 2018 exceeds the 20-year average of 0.8.

Market researcher Conference Board stated Tuesday that consumer confidence in the United States has increased in May 2018 compared to April 2018. The Consumer Confidence Index increased to 128 in May 2018, compared to a revised 125.6 in April 2018. The increase in May 2018 concurs with earlier forecasts by economists.

House prices in the United States have increased less than expected in March 2018. The S&P/Case-Shiller national home price index, which reflects the average sales price development based on 20 U.S. cities, increased by 0.5% on a monthly basis and 6.8% on an annual basis. Economists forecasted an increase of 0.7% on a monthly basis.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap decreased with 3 basis points to 0.87% 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 29 May 2018

Market Information Tuesday 29 May 2018

Attempts to form a new government in Italy have reached a stalemate. The proposed Minister of Economy and Finances has been rejected by the Italian president, Sergio Mattarella. The president appointed former IMF official Carlo Cottarelli to form a new cabinet. It is highly likely this will result in new elections. The political turmoil led to a decrease of European stock exchanges yesterday, and an increase in the yield on Italian government bonds.

With the OPEC agreement to limit oil production yielding the desired results, sources indicate that Saudi-Arabia and Russia are planning to increase their production of oil in the near future. The countries are aiming for production increase of 1 million barrels of oil per day. A number of other OPEC members, however, are opposed to an output increase. WTI oil futures dropped as much as 3.1% on Monday, following a 4.0% decrease on Friday, the biggest loss in 11 months.

Companies in the industrial sector of the Netherlands expect to invest 25% in fixed assets in 2018 compared to 2017. According to research by Statistics Netherlands, the increase is even greater than was expected at the end of 2017, when entrepreneurs anticipated investing 16% more in 2018. In 2016, the industrial sector invested EUR 8 billion in new fixed assets. While no official figures are available for 2017 yet, Statistics Netherlands expects an increase of 19% compared to 2016 levels.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap decreased with 3 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 Monday 28 May 2018

Market Information Monday 28 May 2018

Last Friday, the Office for Economic Policy Analysis of the Netherlands published its World Trade Monitor. It shows that world trade volume decreased by 1.2% in March 2018 compared to February 2018. In February, world trade volume decreased by a revised 0.7% compared to the previous month. Additionally, worldwide industrial production increased by 0.3% on a monthly basis in March 2018.

According to the British statistics bureau, the British economy grew by 0.1% in the first quarter of 2018 compared to the fourth quarter of 2017. This is weakest growth of the economy in Great Britain since 2012. In the fourth quarter of 2017, the economy grew by 0.4% compared to the previous quarter.

Final figures published by the University of Michigan show that consumer confidence in the United States has decreased in May 2018 compared to April 2018. The index that measures confidence of consumers in the US decreased from 98.8 in April to 98.0 in May. Economists had expected a constant level of 98.8 in May.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap decreased with 4 basis points to 0.93% 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 Thursday 24 May 2018

Market Information Thursday 24 May 2018

The inflation rate in the United Kingdom decreased from 2.5% on an annual basis in March 2018 to 2.4% in April 2018. This marks the lowest level in the past thirteen months. While the price increase of fuel and energy was greater than in the previous month, the price increase of airfare was lower in April compared to March. The core inflation rate decreased to 2.1% in April 2018.

Yesterday, in an attempt to stop the recent freefall of the Turkish lira, the Turkish central bank increased its benchmark interest rate by three percentage points, from 13.5% to 16.5%. Prior to the announcement on Wednesday, the lira decreased 5.5% in value versus the dollar. This morning, the lira was up 0.9% compared to Wednesday’s close price. Furthermore, inflation increased to 10.9% in April 2018.

Research agency Markit announced yesterday that the industrial activity in the Eurozone increased at a lower rate in May 2018 compared to April 2018. The Eurozone PMI closed at 55.5 in May, down from 56.2 in April. The slowdown of industrial activity is partially due to a slowdown of industrial activity in Germany. At the same time, however, French industrial activity picked up pace compared to last month.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap decreased with 3 basis points to 1.00% 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 23 May 2018

Market Information Wednesday 23 May 2018

According to Statistics Netherlands (CBS) consumer confidence decreased in May 2018. Also, people’s judgement on the economic climate and willingness to buy decreased. Consumer confidence has fallen to a level of 23, which is above the average over the last twenty years of -3. The highest level ever measured was 36, in January 2000. The lowest level ever reached was -41 in March 2013. In April 2018, the level of the confidence indicator was 25.

Today the French bureau of statistics (INSEE) published figures stating that French unemployment has increased. According to these figures, unemployment increased from 9.0% in the fourth quarter of 2017 to 9.2% in the first quarter of 2018. From the third to the fourth quarter, the level of unemployment declined from 9.6% to 9.0% respectively. Economists expected a continuation in the decline of the unemployment rate to 8.5%.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap increased with 1 basis point to 1.03% 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 22 May 2018

Market Information Tuesday 22 May 2018

According to the Japanese government, Japan’s exports increased by 2.1% in April 2018 compared to March 2018. Exports increased by 7.8% on a yearly basis. Economists expected a growth in exports of 8.7%. Japan saw an increase in exports to China, the European Union and the United States.

China and the United States have reduced trade tensions after negotiations in Washington. China has solemnly promised to buy more American goods. Investors reacted relieved that the trade tensions between the US and China have been reduced.

Credit rating agency Standard & Poor’s (S & P) maintains its highest credit status (AAA) for the Netherlands. S & P points, among other things, to the healthy public finances of the Netherlands, with budget surpluses. It is expected by the credit bureau that the national debt will fall by almost 10% in the coming years, to around 46% of the gross domestic product (GDP) in 2021.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap decreased with 2 basis points to 1.02% 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 18 May 2018

Market Information Friday 18 May 2018

In April 2018, prospects for the United States economy have improved again, according to research institute Conference Board based on its index of leading indicators. The business cycle barometer increased by 0.4%, which was exactly according to economists’ expectations. In March 2018, the index increased by a revised 0.4%.

According to the European bureau of statistics Eurostat, the building production in the Eurozone decreased by 0.3% in March 2018 compared to February 2018. In February 2018, building production decreased by a revised 0.7% compared to January 2018. Production decreased by 0.9% in the European Union in March 2018 and by 0.8% in February 2018 on a monthly basis.

The Dutch industry reported decreased revenues over the first quarter of 2018 compared to the previous quarter. Especially the car producers outperformed. Revenues have been rising since the fourth quarter of 2016. According to Statistics Netherlands (CBS), in the first three months of 2018, total turnover increased by 3%. The means of transportation industry had the highest increase of more than 11%.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap increased with 2 basis points to 1.08% 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 Thursday 17 May 2018

Market Information Thursday 17 May 2018

According to the Dutch State Treasury Agency of the Ministry of Finance (DSTA), the Dutch state will raise between EUR 2 billion and EUR 4 billion with the reopening of two short-term loans. The EUR 2 billion loan runs until 31 July 2018, with an outstanding amount of EUR 2.63 billion. The EUR 4 billion loan runs until 31 October 2018, with an outstanding amount of EUR 1.47 billion.

The German Federal Statistical Office (Destatis) reported that inflation in Germany in April 2018 amounted to 1.6% on an annual basis compared to March 2018. The figure is in line with expectations of economists. On the basis of the European harmonized measurement method, an inflation rate of 1.4% was measured for April 2018, compared to 1.5% in March 2018.

In line with expectations of the Japanese government, the Japanese economy showed a contraction in the first quarter of 2018 for the first time since 2015, with a contraction of 0.6% on an annual basis. In the previous quarter, the Japanese economy increased by an adjusted 0.6%. The country’s economy is caused by weaker domestic demand.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap decreased with 1 basis point to 1.06% 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. For more history of these rates or other rates feel free to ask: update@zanders.eu.

Market Information Wednesday 16 May 2018

Market Information Wednesday 16 May 2018

The European bureau of statistics Eurostat reported that the Eurozone economy experienced a growth of 0.4% in the first quarter of 2018 compared to the end of 2017. This economic growth rate concurs with Eurostat’s previous forecasts. The economic growth rate in the fourth quarter of 2017 was higher at 0.7%. Furthermore, Eurostat reports that for the European Union the quarterly economic growth has been 0.4% for the first quarter of 2018, and 0.6% for the last quarter of 2017.

In March 2018, the Eurozone industrial output increased with 0.5% compared to February 2018, as announced by Eurostat. Economists expected a slightly higher increase in production of 0.7%. Additionally, the industrial production in the EU increased with 0.4% in March 2018 compared to the month before.

The Statistics Netherlands (CBS) confirmed its February first estimate showing that GDP growth in the Netherlands was 0.5% in the first quarter of 2018 compared to the fourth quarter of 2017. According to these figures, the economy of the Netherlands expanded with 0.8% during the fourth quarter of 2017. The increase in GDP is mostly explained by increases in consumer spending, increases in investments, and a decrease in unemployment.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap increased with 3 basis points to 1.07% 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 15 May 2018

Market Information Tuesday 15 May 2018

Figures by Statistics Netherlands show that in the first quarter of 2018, the unemployment rate in the Netherlands was 4.1% of the labor force,. The unemployment rate peaked in the first quarter of 2014 at 7.8% and has since steadily decreased for 16 straight months. The amount of slack in the labor market has decreased, with 1.6 unemployed for each vacancy.

Statistics Netherlands further reported that the export share of the Netherlands in world trade increased in 2016 and 2017 to 3.2%. Until 2009, the Netherlands’ share of exports in world trade was steady at around 3.5%, but has been decreasing since. The increase in 2016 was mostly the result of a decrease in world trade activity, while the 2017 increase is mostly due to Dutch exports rising more than the volume of world trade. Compared to 2000, the world trade has more than doubled in value to approximately EUR 20 trillion.

According to OPEC, worldwide oil inventories decreased from 340 million barrels above the five-year average in January 2017 to 9 million barrels above the average in March 2018. OPEC stated that the decrease is the result of its successful agreement to cap the oil production of member states. Prices of Brent and WTI oil have been increasing since mid-2017. The increase of the oil price was the main goal when OPEC members agreed to limit oil production in 2016.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap increased with 4 basis points to 1.04% 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 14 May 2018

Market Information Monday 14 May 2018

Last Friday, the university of Michigan published that consumer confidence in the United Stated remained stable in May 2018. The consumer confidence index was estimated at 98.8, the same level as in April 2018. Economists had expected the index to decrease to 98.3.

According to figures published by the United States Labor Department, import prices in the US have increased by 0.3% in April 2018 compared to March 2018. Economists had expected an increase of 0.5%. In March 2018, import prices decreased by a revised 0.2% compared to February 2018. Export prices in the US increased by 0.6% in April 2018 compared to the previous month.

According to Statistics Netherlands (CBS), the Netherlands recorded the same number of bankruptcies in April 2018 as in March 2018. Excluding one-man businesses, 252 firms and institutions were declared bankrupt. The largest number of bankruptcies was recorded in the trade sector, 50 firms defaulted.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap increased with 1 basis point to 1.00% 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 9 May 2018

Market Information Wednesday 9 May 2018

Statistics Netherlands reported that industrial production in the Netherlands increased by 3.5% in March 2018 compared to March 2017. The growth rate of industrial production decreased compared to the annual growth rate of February 2018, where industrial production increased by 4.2% compared to February 2017.

Yesterday, the German federal bureau of statistics published figures that state that in March 2018 German exports increased by 1.0% compared to February 2018. Economists forecasted an increase in exports of 0.8% for the same period. In February 2018, exports of Europe’s largest economy increased by 1.7%

Yesterday, American President Donald Trump announced that the United States will end its participation in the Iran nuclear deal. Preceding to the announced revision of the nuclear deal the price of a barrel of WTI oil already increased. However, the oil price further increased after the decision to exit the nuclear deal was made public. The increase in the oil price is a response to fears of sanctions against Iran, one of the world’s largest oil producers.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap increased with 4 basis points to 1.00% 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 8 May 2018

Market Information Tuesday 8 May 2018

Statistics Netherlands announced that Dutch consumer prices increased with 0.9% in April 2018 compared to April 2017. The increase is lower than in March 2018, when prices increased with 1.0% versus March 2017. Prices for housing, water, and energy in particular increased. Measured according to the harmonized European index of consumer prices, goods and services increased in price with 0.7% compared to April 2017. The increase is lower than in March 2018 and below the Eurozone average of 1.2%.

In 2017, the economy of the Netherlands expanded with 3.2%. According to Statistics Netherlands, it marks the first year of above 3.0% growth since 2007. Re-exports were the largest contributor to the economic growth of the Netherlands at 2.3%. Moreover, exports of Dutch goods and services increased with 1.6% and 1.0% compared to 2016. Investments and consumer spending increased only moderately last year.

For the first time since November 2014, the price of a barrel of WTI oil increased to over USD 70. The latest oil price increase is mostly the result of fears for new economic sanctions against one of the world’s largest producers of oil, Iran. The American President Donald Trump will announce today whether the United States is ending its participation in the Iran nuclear deal. Analysts fear a US dismissal of the deal will lead to new economic sanctions against Iran, which in turn will make trade with the country more difficult.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap decreased with 1 basis point to 0.96% 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 7 May 2018

Market Information Monday 7 May 2018

Last Saturday, the European Central Bank (ECB) published the results of stress tests for the four biggest banks in Greece. The ECB estimated that, in an adverse economic scenario, the four biggest banks in Greece would lose around EUR 15.5 billion worth of their capital by 2020. The Greek banks passed the stress test, as their capital buffers are sufficient to absorb this capital loss.

Friday, the Bureau of Labor Statistics published that nonfarm payroll employment in the US increased by 164,000 in April 2018. The increase was larger than in March 2018, when employment increased by a revised 135,000 jobs. Economists expected the number of jobs to increase by 192,000. Hourly wages increased by 0.1% in April, compared to 0.2% in February.

Market researcher Markit stated that business activity among service providers in the Eurozone decreased in April 2018, compared to March 2018. The purchasing managers index (PMI) registered 54.7 in April, compared to 54.9 in the previous month. Based on an earlier estimate, a level of 55.0 was expected in April. A value higher than 50 indicates growth, a value below indicates contraction.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap is unchanged at 0.97% 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 4 May 2018

Market Information Friday 4 May 2018

The European Commission announced in its annual spring forecasts that growth in the EU continues to remain strong at 2.3% in 2018 and 2% in 2019. The expectation for the Netherlands are even above the EU forecast, with 3% for the year 2018 and 2.6% next year. However, the European Commission warns against external factors, such as protectionism on the world market, which can disrupt these predictions.

According to the Eurostat, inflation in the eurozone fell to 1.2% year-on-year in April 2018, compared to 1.3% in March 2018. Economists expected an inflation of 1.3%. Core inflation (without food and fuel prices) was 0.7% in April 2018, compared to 1.0% in March 2017. The European Central Bank (ECB) aims for inflation somewhat below 2.0%.

In addition, the European statistics agency Eurostat announced that the producer prices in the Eurozone increased by 0.1% in March 2018 compared to February 2018. In the entire European Union, an increase of 0.2% on a monthly basis was measured in March 2018.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap decreased with 4 basis points to 0.97% 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 Thursday 3 May 2018

Market Information Thursday 3 May 2018

Eurostat published preliminary figures on Wednesday that show that economic growth in the eurozone fell in the first quarter of 2018 compared to the fourth quarter of 2017. Economic growth in the first quarter was 0.4%, compared to 0.7% in the fourth quarter previous year. The declining growth rate was in line with expectations of economists. For the entire European Union, economic growth in the first quarter of 2018 also was 0.4%, compared to 0.6% in the fourth quarter of 2017.

The Federal Open Market Committee (FOMC) of the Federal Reserve (Fed) decided to keep the Federal Funds Rate unchanged. The board members of the FOMC said in a statement that US inflation is approaching the target of 2%. Due to the decision of the FOMC, the interest rate remains at a bandwidth of 1.50% to 1.75%. In June 2017, the next FOMC meeting will be held.

Payroll processor ADP stated that the number of jobs in the American private sector increased in April 2018 with 204,000. In March 2018, private sector job growth was revised at 228,000. The job figures matched the expectations of analysts. Coming Friday the US government will publish its monthly employment figures. In this report, employment figures of the public sector are also taken into account.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap increased with 2 basis points to 1.01% 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 2 May 2018

Market Information Wednesday 2 May 2018

In April 2018, the purchasing managers’ index for the United States services sector has decreased to a level of 57.3 from a level of 59.3 in March 2018. The index, which is published by research agency ISM, indicates a slowdown in growth of economic activity in the services sector. Economists expected a decrease of the index to 58.4. A level above 50 indicates growth of economic activity.

The Dutch Association of Purchasing Management (Nevi) published the Dutch Purchasing Managers Index (PMI). According to Nevi, the PMI reached a level of 60.7 in April 2018 against a level of 61.5 in March 2018. A value above 50 indicates growth.

According to the U.S. Commerce Department, construction spending in the United States decreased by 1.7% in March 2018 compared to February 2018. Economists expected an increase of 0.5%. In February 2017, construction spending increased by 1.0% compared to previous month.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap decreased with 1 basis point to 0.99% 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 1 May 2018

Market Information Tuesday 1 May 2018

The German office of federal statistics Destatis reported that the inflation rate in April 2018 has stabilized at 1.6% on an annual basis. The largest increase occurred in the price of food. Measured according to the European harmonized index of consumer prices, inflation increased with 1.4% compared to April 2017, a slight decrease compared to 1.5% in March 2017.

According to the US Department of Commerce, consumer spending increased by 0.4% in March 2018 compared to February 2018. Personal income of consumers increased by 0.3% during the same period, comparable to the increase in February 2018.

The output prices of the Dutch industrial sector increased with 0.7% in March 2018 compared to March 2017. The increase is higher than in February 2018, when prices were 0.3% higher than in February 2017. Output price development is strongly dependent on the prices of crude oil, which were higher in March 2018 compared to March last year.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap decreased with 1 basis point to 0.99% 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