Market Information Friday 31 July 2020

Market Information Friday 31 July 2020

Unemployment in the eurozone increased to 7.8 percent in June 2020, from 7.7 percent in May 2020. This follows from figures published by statistics agency Eurostat on Thursday. Unemployment in the eurozone also increased on an annual basis, as the unemployment rate was 7.5 percent in June 2019.

New figures from the European Commission show that the consumer confidence index in the eurozone decreased to 15.0 negative in July 2020, from 14.7 negative in June 2020. On the other hand, the economic sentiment index rose from 75,8 in June 2020 to 82.3 in July 2020.

The US economy shrank by 9.5 percent in the second quarter of 2020 compared to the first quarter of 2020. This is equal to an annual contraction of 32.9 percent. Economists had anticipated an annual contraction of 34.7 percent. This is the largest contraction of the U.S. economy since the start of the current series of measurements by the Department of Commerce in 1947.

The 6M Euribor decreased with 1 basis point to -0.39% compared to previous business day. The 10Y Swap decreased with 4 basis points to -0.26% 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 30 July 2020

Market Information Thursday 30 July 2020

The second-quarter growth in the United States (US) economy is expected to be the worst ever. The economy is expected to shrink by 35.0%, reported by Bloomberg news agency. As usual, the quarterly US figures are presented annualized. The final figures will be announced tomorrow.

Despite the corona pandemic, European tech companies were able to attract billions in growth money. In the past quarter, EUR 9.0 billion in venture investment was made in European companies. This indicates an investment growth in the tech sector of 5.7% compared to the first quarter. Almost a third of the capital investments in the past quarter were in software companies. Corona therefore does not put a brake on venture capital in the techsector.

The average decline in turnover of Dutch exporting companies has weakened for the first time since the outbreak of the corona pandemic. The sales loss in July is 28.0%, which is less than the 30.0% of last month. This is reported by the Corona Monitor of Evofenedex, the business association for trade and logistics.

The 6M Euribor is unchanged at -0.38% compared to previous business day. The 10Y Swap increased with 2 basis points to -0.22% 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 29 July 2020

Market Information Wednesday 29 July 2020

Consumer confidence in the US economy declined sharply in July compared to a month earlier, according to the Conference Board’s report on Tuesday. The index reflecting confidence reported a reading of 92.6 in July 2020, from an adjusted 98.3 in June 2020. This is the strongest decline since March 2020. Economists had expected a reading of 94.5.

The European Central Bank (ECB) announced that the advice to banks to refrain from paying dividends or share buy backs will be extended until January 2021. Banks are also expected to moderate variable remuneration in order to maximize available capital. The supervisor further encourages banks to continue using their capital and liquidity buffers for lending and loss absorption. Recovery of those buffers is expected from mid-2022 onwards.

The Federal Reserve has decided to extend most of its emergency lending programs created to mitigate the economic impact of the corona virus by three months. Initially, the programs would expire on September 30. The extension is in line with expectations as Fed-officials previously indicated that facilities would be maintained for as long as necessary.

The 6M Euribor decreased with 1 basis point to -0.38% compared to previous business day. The 10Y Swap decreased with 2 basis points to -0.24% 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 Tuesday 28 July 2020

Market Information Tuesday 28 July 2020

China has become net importer of steel again for the first time in eleven years, even though steel production in the Asian country itself is running at full speed. This is reported by S&P Global Platts, provider of raw material information. China imported a total of almost 4.4 million tonnes of steel in June, while only 3.7 million tonnes were exported due to the corona crisis. China was affected by the corona virus earlier than the rest of the world, which is why the first economic recovery also precedes the recovery in other countries.

The price of gold increased to USD 1,923,20 per troy ounce (31.1 grams) on Monday, breaking the record level of September 2011. The price of gold has been increasing significantly recently, as investors are looking for safe havens to invest in due to the uncertainties surrounding the coronavirus. The absolute record stood at just over USD 1,921, set at the beginning of September 2011.

Orders for durable goods in the United States increased by 7.3% in June compared to the previous month. This was reported by the US Department of Commerce based on a preliminary figure. In May, those orders already increased by an adjusted 15.1%.

The 6M Euribor is unchanged at -0.37% compared to previous business day. The 10Y Swap decreased with 3 basis points to -0.22% 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 27 July 2020

Market Information Monday 27 July 2020

World trade fell by 1.1 percent in May from a month earlier. This is reported by the Central Planning Bureau (CPB), which recorded a historic decline of 12.2 percent a month earlier. This year, world trade has decreased by 17 percent. In the eurozone, trade is showing signs of recovery, reports the CPB. Imports increased by 6.5 percent and exports increased by 10.2 percent. In other major economies such as the US and Japan, imports and exports are still declining.

Dutch investors’ confidence rose again slightly in July. ING’s investor confidence indicator stood at 100 compared to 98 in June. Four out of five investors surveyed expect the value of their own investment portfolio to remain the same or increase over the next three months.

Manufacturing activity in the US and the eurozone shows growth in July. According to the purchasing managers index of research agency Markit, the position in the US for this month is 51.3 compared to 49.8 in June. The index for the US services sector rose from 46.9 to 47.9 in July. The eurozone is experiencing growth for the first time since the corona crisis. The index reached 51.1 in July and the index for the services sector reached 55.1.

The 6M Euribor decreased with 1 basis point to -0.37% compared to previous business day. The 10Y Swap increased with 2 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 Friday 24 July 2020

Market Information Friday 24 July 2020

Figures published by research firm GfK show that the German consumer confidence index for August 2020 increased to 0.3 negative, compared to a revised 9.4 negative for July 2020. The confidence index is measured one month ahead. Economists expected an index of 4.8 negative for August 2020 in advance.

Eurozone consumer confidence decreased to 15.0 negative in July 2020, from 14.7 negative in June 2020. This follows from preliminary figures released by the European Commission on Thursday. Last month, the confidence index increased from negative 18.8 in May 2020 to negative 14.7 in June 2020.

New figures published by the US Department of Labor on Thursday show that 1.42 million Americans filed for social assistance benefits during the week ending July 18, 2020. That is a small decrease compared to a week earlier, when the number of unemployed increased by 1.31 million.

The 6M Euribor decreased with 1 basis point to -0.36% compared to previous business day. The 10Y Swap increased with 1 basis point to -0.21% 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 23 July 2020

Market Information Thursday 23 July 2020

Based on figures published yesterday by Statistics Netherlands (CBS), Dutch companies postpone their investments during the corona lockdown. Investments in tangible fixed assets, such as factories, machines and commercial vehicles, decreased in May by 18.8% (year-on-year difference). This is the largest decrease ever recorded. In April, investments already decreased by more than 11.0% (year-on-year).

Figures published by the European statistics agency Eurostat show that the budget deficit of the eurozone has increased significantly in the first quarter of this year. This can be explained by the fact that governments provide many funds to fight the corona crisis. The euro area budget deficit increased to 2.2% of gross domestic product (GDP) in the first quarter of 2020, compared to a deficit of 0.7% of GDP in the fourth quarter of 2019. The government debt of euro countries averaged 86.3% of GDP in the first quarter. In a non-crisis situation, European budgetary rules apply a maximum debt of up to 60% of GDP, but this will not be applied for the time being due to the crisis.

Sales of existing homes in the United States increased sharply in June, compared to May. This was reported by the American association of brokers. Sales increased by 20.7% on a monthly basis.

The 6M Euribor is unchanged at -0.35% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.22% 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 22 July 2020

Market Information Wednesday 22 July 2020

Statistics Netherlands (CBS) reports that consumer confidence has hardly changed in July from a month earlier. The CBS reported a reading of -26, compared to -27 in June. The reading of -26 is far below the measured average of the past twenty years (-5). Willingness to buy and the perceptions about the economic climate are also unchanged.

In addition, Statistics Netherlands (CBS) reports that consumers spent 12.8 % less in May 2020 than in May 2019. Consumers spent less on services, for which expenditures in May were 22.4 % lower than a year earlier. Spending on food and stimulants increased by 6.3 % compared to a year earlier. According to the CBS Consumption Radar, conditions for Dutch household consumption are more favourable in July than in May.

Preliminary figures from IHS Markit and Jibun Bank show that the manufacturing industry purchasing manager index (PMI) in Japan unexpectedly increased to a level of 42.6 in July 2020, from a level of 40.1 in June 2020. Economists had expected a reading of 39.6. The purchasing managers index for the services sector increased to 45.2 in July, from 45 in June 2020.

The 6M Euribor is unchanged at -0.35% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.21% 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 Tuesday 21 July 2020

Market Information Tuesday 21 July 2020

In Brussels, European heads of government agreed on the next seven-year budget with an associated post-corona recovery package. This was announced this morning by the President of the European Council, Charles Michel, after four days of negotiations. The plan provides for a budget for 2021-2027 of EUR 1,074 billion in total and a post-corona recovery package of EUR 750 billion. EUR 390 billion of the recovery package will be provided through subsidies to Member States and the remainder will be distributed through low-interest loans. In addition, an emergency brake procedure has been initiated to allow one Member State to suspend payments from the recovery package to another if promised reforms in areas such as pensions and the labour market are not implemented.

The Chinese government is considering retaliation against two major European network equipment manufacturers, Nokia and Ericsson, if more European countries decide to ban Huawei equipment. This is reported by The Wall Street Journal based on insiders. China is considering strict export controls, which would make it much more difficult for Nokia and Ericsson to export products they manufacture in China to other countries.

German Federal Statistical Office reports that producer prices in Germany in June remained unchanged from the previous month. Economists expected an increase of 0.2%. In May, the prices charged by German manufacturers for their products decreased by 0.4%.

The 6M Euribor is unchanged at -0.35% compared to previous business day. The 10Y Swap decreased with 2 basis points to -0.20% 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 20 July 2020

Market Information Monday 20 July 2020

Activity in the construction sector in the eurozone rose sharply in May following the decline in March and April. This was reported by the European statistics agency Eurostat on the basis of an initial estimate. Monthly production rose 27.9 percent compared to April with a decline of 18.3 percent. Activity in Italy and France increased substantially.

Japan’s exports declined by more than 26 percent in June compared to a year earlier due to the corona crisis. As a result, exports have fallen by more than 20 percent for three months in a row. Because of the crisis, there is less foreign demand for Japanese-made products such as cars, auto parts and machinery. Japanese imports declined by more than 14 percent last month.

US consumer confidence in the economy declined in July compared to June, as was announced by the University of Michigan based on preliminary figures. The index was 73.2 in July versus 78.1 in June. Economists expected in general a score of 79.

The 6M Euribor decreased with 2 basis points to -0.35% compared to previous business day. The 10Y Swap increased with 2 basis points to -0.18% 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 17 July 2020

Market Information Friday 17 July 2020

The European Central Bank (ECB) decided on Thursday to leave its monetary policy unchanged. The main policy rates stay the same and the buy-back program, PEPP, remains unchanged at EUR 1,350 billion as well. President Christine Lagarde emphasized that the economic outlook remains downward, despite the economic recovery in May and June.

The corona crisis is estimated to cost Dutch municipalities approximately EUR 1.5 to 1.8 billion this year. This follows from research by the research agency Andersson Elffers Felix, commissioned by the Association of Dutch Municipalities. In this estimate, the research agency assumes that a second wave of the virus will not materialize. Otherwise, the costs could rise to EUR 2.8 billion. Municipalities generate less income from tourist tax and paid parking, while expenditure on support for associations and social services has increased.

New figures from the US government show that sales in the US retail sector increased by 7.5 percent in June 2020 compared to May 2020. In May 2020, sales also increased by 18.2 percent compared to April 2020. On an annual basis, retail sales increased by 1.1 percent in June 2020 compared to June 2019.

The 6M Euribor is unchanged at -0.33% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.20% 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 July 2020

Market Information Thursday 16 July 2020

Based on the so-called Beige Book, a report of the Federal Reserve that provides insight into economic activity in the United States (US), the figures for the beginning of this month showed signs of recovery from the corona crisis. The economic activity recovered in all regions of the country, but remains far below pre-crisis levels. This conclusion is drawn based on surveys by the twelve regional central banks in the US.

The number of unemployed in the Netherlands increased by 74,000 in June to a total of 404,000. Based on figures published by Statistics Netherlands (CBS), 4.3% of the labor force was unemployed. The unemployment rate increased significantly compared to May (3.6%).

Starting August, the OPEC oil cartel and allies such as Russia will gradually increase oil production. Oil production was reduced earlier this year due to sharply decreasing oil prices. This decision was made in a video conference of OPEC and its allies, in line with expectations.

The 6M Euribor is unchanged at -0.33% compared to previous business day. The 10Y Swap decreased with 1 basis point 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 Wednesday 15 July 2020

Market Information Wednesday 15 July 2020

According to the European statistics agency, Eurozone manufacturing output increased by 12.4 percent in May compared to April. Economists had generally expected a plus of 15 percent. In April, euro area industrial production declined by an adjusted 18.2 percent. For the entire European Union, production growth of 11.4 percent was recorded on a monthly basis in May. In April the economy contracted with 18.2 percent.

The UK economy declined by nearly a fifth in the months of March to May compared to the same period a year earlier. Compared to February, gross domestic product (GDP) actually fell by almost a quarter. The British statistics agency Office for National Statistics (ONS) announced this on Tuesday. The biggest declines were in the construction sector, which contracted by 29.8% in the three lockdown months. Agriculture fared less badly with a contraction of 6.3%.

The US government announced that inflation in the United States was 0.6 percent year-on-year in June, down from 0.1 percent in April. The increase in the average price level corresponded to the expectations of economists.

The 6M Euribor is unchanged at -0.33% compared to previous business day. The 10Y Swap decreased with 3 basis points to -0.18% 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 Tuesday 14 July 2020

Market Information Tuesday 14 July 2020

Production in the Japanese industry contracted by 8.9% in May compared to the previous month. This was reported by the Japanese government on the basis of final figures. As a result, the industry shrank even more than reported on the basis of preliminary figures. Earlier, there was still talk of an 8.4% decline in production. On an annual basis, industrial production decreased by 26.3%. The contraction is partly caused by the fall in demand in the car industry and the earlier closures of factories.

In May, the British economy was recovering slowly from the heavy blows caused earlier by the corona crisis. According to the British bureau of statistics, the economy grew by 1.8% that month compared to April, when it still showed a contraction of more than 20%. However, the growth was not as strong as expected, because economists expected a plus of 5.5% on average.

German inflation was 0.9% year-on-year in June, compared to 0.6% in May. The German Federal Statistical Office reported this in a final figure. On a monthly basis, inflation rose by 0.6%.

The 6M Euribor is unchanged at -0.33% compared to previous business day. The 10Y Swap increased with 4 basis points 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 Monday 13 July 2020

Market Information Monday 13 July 2020

A group of oil countries, including Saudi Arabia, are trying to persuade OPEC oil cartel and Russia to increase oil production starting August. The Wall Street Journal reports this on the basis of information provided by insiders. According to the newspaper, the countries would like to increase production based on signs that demand for oil is picking up again as corona measures are relaxed in many countries. The OPEC members will probably talk about this in a video conference next week.

US President Donald Trump says it is unlikely that the fragmented trade deal with China will be extended. Tensions between the United States and China are too tense for that, he told reporters aboard his government plane. “I wasn’t even thinking about it and I have other things on my mind,” Trump answered on the question if new trade agreements are coming up. “The relationship with China has been seriously damaged.”

The production of the Italian and French industry increased substantially in May compared to April. In France, driven mainly by the construction sector, industrial production grew by almost 20%, more than economists on average expected. In Italy, the increase in production was even more than 42 percent compared to expected growth of 24 percent.

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

Market Information Friday 10 July 2020

New figures published by the US Department of Labor on Thursday show that 1.31 million Americans filed for social assistance benefits during the week ending July 4, 2020. That is a small decrease compared to a week earlier, when the number of unemployed increased by 1.41 million. Economists had expected 1.39 million new unemployed in advance.

New figures from Statistics Netherlands show that production in Dutch industry decreased by 12.5 percent in May 2020 compared to May 2019. This is the largest decrease in over 11 years. In April 2020, production decreased by 11.0 percent compared to April 2019. On a monthly basis, industrial production fell by 1.9 percent in May 2020 compared to April 2020.

In France, industrial production increased by 19.6 percent in May 2020 compared to April 2020. This follows from figures published by Statistics France on Friday. In April 2020, monthly production increased by 20.6 percent compared to March 2020. For May 2020, economists had expected an increase of 12.5 percent. On an annual basis, industrial production in May 2020 was still 25.4 percent lower compared to May 2019.

The 6M Euribor decreased with 1 basis point to -0.32% compared to previous business day. The 10Y Swap decreased with 2 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 Thursday 9 July 2020

Market Information Thursday 9 July 2020

German exports increased by 9.0% MoM in May compared to the previous month, according to figures published by the German statistics agency Destatis. After a sharp decrease in March and April, due to the corona crisis, exports are slowly recovering. In April, exports decreased by 24.0% MoM. Imports increased by 3.5% MoM in May compared to -16.6% in April.

According to Statistics Netherlands (CBS), 35.1% of all self-employed workers (1.26 million) declines below the level of financial resources if their income is lost for a full year. This is evident from a simulation based on the income data of self-employed persons for the year 2018. During the current crisis, the risk of self-employed persons losing their assignments has increased drastically.

Next Monday the Dutch state wants to raise EUR 2 to 4 billion with the reopening of two loans. This has been announced by the Agency of the General Treasury of the Ministry of Finance (DSTA). These are short-term loans, until January 28, 2021 and June 29, 2021.

The 6M Euribor is unchanged at -0.31% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.17% 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 8 July 2020

Market Information Wednesday 8 July 2020

The European economy is expected to enter a deeper recession than the European Commission expected two months ago. According to a new forecast from the European Commission, a contraction of 8.7% is expected in the eurozone. In May, the economy was expected to contract by 7.7%. This difference is mainly caused by the significant downward revision of the figures of the severely affected southern EU Member States. Vice-President Valdis Dombrovskis stated that the economic impact of the lockdown was more severe than initially estimated.

According to figures from Destatis, the German statistical office, German industrial production increased by 7.8% in May compared to the previous month. In April there was an unprecedented contraction of 17.5% which, as a result of corona measures, led to factory closures. On average, economists had expected a stronger recovery of 11.1% on a monthly basis.

Dutch minister of finance Wopke Hoekstra is preparing a bill to oblige auditors to audit the annual financial statements of companies listed on the stock exchange. Auditors are now allowed to refuse them as clients, and this threatens to bring a number of small stock exchange funds into financial trouble, Dutch newspaper Financieele Dagblad reports. Preparations for a bill will start after the summer.

The 6M Euribor is unchanged at -0.31% 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.

Market Information Tuesday 7 July 2020

Market Information Tuesday 7 July 2020

Activity levels in the services sectors in the United States increased significantly in June 2020 from a month earlier, according to the Institute for Supply Management (ISM). Its non-manufacturing index surged to a level of 57.1 against 45.4 in May. Readings above 50 indicate growth. The increase was larger than expected by economists (50.2).

New figures from Eurostat show that the volume of retail sales in the eurozone increased by 17.8 % in May 2020 compared to April 2020. For the whole EU, the increase is 16.4 %. On an annual basis, retail sales decreased 5.1 % in May 2020 compared to May 2019 for the eurozone and 4.2 % for the whole EU.

Statistics Netherlands (CBS) has announced that consumer prices were higher in June 2020 than last year. Inflation was 1.6 percent in June, up from 1.2 percent in May. The rise in inflation is mainly the result of price developments of fuels, tobacco and clothing.

The 6M Euribor decreased with 1 basis point to -0.31% 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.

Market Information Monday 6 July 2020

Market Information Monday 6 July 2020

According to Klaas Knot, president of De Nederlandsche Bank (DNB), it is possible that the European Central Bank will not use the full 1350 billion euros in the purchase program to fight the corona crisis. In addition, there are risks associated with relying too long on certain crisis measures by the central bank for the euro area. Knot argued at an online event of Bloomberg for a good mix of support measures, not just looking at central banks for help with purchase programs or interest rate cuts. According to the DNB president, this did happen during the recovery after the financial crisis. One of the drawbacks was the cheap money policy that encouraged higher debts.

Consumer confidence in the Netherlands improved again in the second half of June, but the increase was extremely limited. The indicator of the Dutch Central Bureau of Statistics (CBS) for consumer confidence was -26 in the second half of June against -27 in the first half of June. According to the CBS, the willingness to buy among households improved from -11 to -8. The opinion on the economic climate remained at -52.

The British researcher company Markit reports that the services sector of several European countries picked up again in June after a strong dip in April and a cautious recovery in May. A score of 48.3 was measured for the entire eurozone. The service sector includes, amongst others, tourism, retail, hospitality and aviation, which were deeply affected by measures to fight the spread of the corona virus.

The 6M Euribor is unchanged at -0.30% 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.

Market Information Friday 3 July 2020

Market Information Friday 3 July 2020

According to the European statistics agency Eurostat, unemployment in the Eurozone increased further in May to 7.4 percent from 7.3 percent in April. Eurostat reports more than 12 million people unemployed in the euro area of 19 countries. Unemployment was measured at 6.7 percent for the entire European Union. That amounts to over 14 million unemployed.

The United States Department of Commerce announced that factory orders in the United States were up 8 percent in May compared to April. In the previous months, orders fell sharply due to the corona crisis. Economists expected an increase of 8.7 percent. Factory orders declined by a revised 13.5 percent in April. Orders declined sharply in March.

A majority of the German parliament supports the European Central Bank (ECB) bond purchase program that started five years ago. The stimulus policy threatened to stall because of a ruling by the German Constitutional Court, but the threat has passed due to political support. In addition to the coalition parties, the Greens and the liberal FDP are also satisfied with the ECB’s explanation of the bond purchase program.

The 6M Euribor increased with 1 basis point to -0.30% compared to previous business day. The 10Y Swap decreased with 2 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 Thursday 2 July 2020

Market Information Thursday 2 July 2020

The Institute for Supply Management (ISM) reports that manufacturing in the United States increased in June from a month earlier. The Purchasing Managers’ Index (PMI) showed a reading of 53.6 compared to 43.1 in May. Economists had anticipated a reading of 49.8.

Employment in the United States increased again in June. According to the ADP Research Institute businesses’ payrolls increased by 2.37 million in June compared to a month earlier. The increase was less significant than economists projected. They had expected an increase of 2.9 million. The May figure was revised to an increase of 3.07 million.

IHS Markit released the June final figures for the industry of the eurozone on Wednesday. The Purchasing Managers’ Index (PMI) rose to a level of 47.4 in June from 39.4 in May. That level is higher than the preliminary reading of 46.9 published last week. According to HIS Markit’s chief economist Chris Williamson the numbers indicate a strong recovery after easing of the lockdowns.

The 6M Euribor decreased with 2 basis points to -0.31% compared to previous business day. The 10Y Swap increased with 4 basis points to -0.14% 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 1 July 2020

Market Information Wednesday 1 July 2020

The price of gold has increased to its highest level since November 2011 due to the turbulent financial markets caused by the corona crisis. This year, the price of the precious metal is rising significantly as investors seek safe havens to invest in because of the uncertainties surrounding the virus. The price of a troy ounce of gold (31.1 grams) currently amounts to more than USD 1,800. As a result, the price of gold is nearing the record of more than USD 1,900 reached in September 2011. Since the beginning of this year the gold price has increased by approximately 18%.

According to preliminary figures from the European statistical office Eurostat, inflation in the Eurozone has increased slightly in June compared to May. Inflation in June is 0.3% on a yearly basis. In May inflation amounted to 0.1%. Price increases for food, alcohol and tobacco were the main drivers of inflation. Core inflation, which excludes the impact of fluctuating energy and food prices, amounted to 0.8% in June, compared to 0.9% in May.

Consumer confidence in the United States economy improved significantly in June compared to May.  This was announced by market researcher Conference Board. The confidence indicator noted a score of 98.1 against an adjusted 85.9 in May. Economists expected a score of 91.4.

The 6M Euribor decreased with 1 basis point to -0.29% compared to previous business day. The 10Y Swap is unchanged at -0.18% 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.