Market Information Friday 11 October 2019

Market Information Friday 11 October 2019

According to The Office for National Statistics the UK economy slightly contracted. The economy contracted by 0.1% in August compared to July, while the economy grew by 0.4% in July. A cause is the persistent uncertainty regarding the Brexit that especially affects British industry. UK producers are reluctant to invest due to this uncertainty. Industrial production was 0.6% lower in August, while analysts had expected an increase of the production.

Figures from the US government show that inflation in the United States in September remained stable at 1.7% on annual basis, while economists expected an increase to 1.8% compared to the previous month. The core inflation, i.e. the inflation without the strongly fluctuating prices of energy and foods, was 2.4% on an annual basis.

Statistics Netherlands reports that the Dutch export has increased by 2.5% in August 2019 compared to August 2018. Especially the export of petroleum and chemical products increased, while the export of electronics decreased. The import volume was 0.8% higher than last year.

The 6M Euribor increased with 1 basis point to -0.38% compared to previous business day. The 10Y Swap increased 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.

Market Information Thursday 10 October 2019

Market Information Thursday 10 October 2019

Figures from the German Federal Statistical Office show that Germany’s exports of goods decreased more than expected in August. Monthly exports of goods decreased by 1.8% in August compared to 0.7% growth in July. Economists expected a 1% decrease in August.

According to Statistics Netherlands (CBS), the average daily output of the Dutch manufacturing industry was 0.8% lower on an annual basis in August. This is the sixth consecutive month in which production decreased. In particular, the production of chemical products, electronic appliances and rubber and plastics decreased the fastest.

According to the Financial Times, the crisis measures recently announced by President Mario Draghi of the European Central Bank (ECB) went against the internal advice of the ECB. It would have been one of the first times in Draghi’s eight years at the helm of the central bank that the internal advice was not followed.

The 6M Euribor is unchanged at -0.39% compared to previous business day. The 10Y Swap increased with 4 basis points to -0.12% 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 9 October 2019

Market Information Wednesday 9 October 2019

The International Monetary Fund (IMF) foresees lower growth for the global economy. For about 90% of the world, the IMF foresees slower growth. According to Kristalina Georgieva of IMF, this year the world economy has probably seen its lowest growth in almost a decade. The forecast for next year was 3.5%. A recent study shows that growth could decrease by 0.8%.

Figures from the US Department of Labour show that on a monthly basis, producer prices in the United States (US) decreased by 0.3% in September, compared to a 0.1% increase in August. Economists expected an increase of 0.1%.

According to Statistics Netherlands (CBS) and the Land Registry, the average price of a new built home in the second quarter of 2019 increased to a record high of nearly €400,000. On average, a new built home was 16% more expensive than one year previously. Existing owner-occupied homes increased on average by 7.2% in the second quarter. The average price of existing owner-occupied houses increased to €300,000.

The 6M Euribor is unchanged at -0.39% compared to previous business day. The 10Y Swap decreased with 1 basis point 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 Tuesday 8 October 2019

Market Information Tuesday 8 October 2019

Consumer prices in the Netherlands in September have increased at a lower rate than in August. According to Statistics Netherlands (CBS) the increase is lower because of price developments of bungalow park accommodations and that of fresh vegetables and potatoes. The prices for consumer goods and -services in September are 2.6 percent higher than the previous year.

According to market researchers Caixin and Markit, economic activity in the Chinese non-manufacturing sector showed lower growth in September than in previous month. The Non-Manufacturing Index was 51.3 in comparison to 52.1 in August. Economists expected a value of 52.

The use of negative interest rates and asset purchase programs by European central bank is justified in a new report of the Bank for International Settlements (BIS). The report shows the effect of monetary policies in last years. According to the bank the negative side effects of the stimulation by central banks does not outweigh the benefits.

The 6M Euribor is unchanged at -0.39% compared to previous business day. The 10Y Swap increased with 2 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 7 October 2019

Market Information Monday 7 October 2019

China appears to be less willing to achieve a broader trade deal with the US. Chinese and American negotiators have had several meetings in the last weeks in Beijing. The number of subjects that the Chinese are willing to negotiate has, according to press bureau Bloomberg, decreased. The negotiations will continue in Washington on Thursday.

The Federal Reserve still intervenes in the US market for short-term loans in October. The US central bank extended the interventions by a month. The market for repurchase agreements faced liquidity shortages last month.

In the US the employment in September has increased less than expected. According to figures from the US ministry of Labor, employment increased with 136,000 new jobs in the last month.

Economists expected approximately 145,000 new jobs on the labour market. Despite the lower growth, the unemployment rate in the US has decreased to 3.5 percent, the lowest level since 1969.

The 6M Euribor decreased with 1 basis point to -0.39% compared to previous business day. The 10Y Swap is unchanged at -0.17% compared to previous business day.