Market Information Tuesday 13 August 2019

Market Information Tuesday 13 August 2019

The Rabobank states that the gap on the housingmarket between the cheapest and most expensive region has increased. In the pre-crisis period, a house in the province of Groningen was on average 100,000 EUR cheaper than in the province of North-Holland. In the second quarter of 2019 this difference has increased to 174,000 EUR.

The yield on the 10-year Italian government bond decreased yesterday. Investors were relieved that credit rating agency Fitch decided to keep the credit rating of Italy at BBB. At the end of the day, interest on the Italian 10-year government bond was 1.72%, eight basis points lower than at the start of the day.

The European Committee has started an investigation into illegal dumping of cheap steel on the European market by Asian companies. The Committee decided to start the investigation after specific complaints were submitted by interest group Eurfor. If the accusations are found to be true, the EU can increase import tariffs or impose fines on Asian steelmakers.

The 6M Euribor decreased with 1 basis point to -0.40% compared to previous business day. The 10Y Swap is unchanged at -0.13% 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 12 August 2019

Market Information Monday 12 August 2019

The British National Statistical Office has announced that the UK economy contracted by 0.2% in the second quarter of 2019. This is the first contraction of the British economy since 2012. The contraction was caused, among other factors, by substantially reduced inventories of companies. These inventories were built up in the run-up to the initial Brexit date in March 2019. Economists had expected a stagnation in the economy. In response to the news, the rate of the British pound fell with 1.0% to EUR/GBP 1,074 on Friday at close of the markets, the lowest level since 2009.

Statistics Netherlands (CBS) has published figures showing that the number of companies that declared bankruptcy in the Netherlands in July 2019 remained virtually the same as the previous month. According to the CBS, 311 companies and institutions were declared bankrupt in July, compared to 309 in June 2019. The number of bankruptcies was highest in the trade sector.

The Italian Deputy Prime Minister Matteo Salvini called for new elections on Friday. In a speech, Salvini, leader of the Lega, said he no longer has confidence in the coalition with the Five Star Movement of prime minister Di Maio. As a result, 10-year Italian government bond yields rose by 27 basis points to 1.804% on Friday at close of the markets, and share prices of Italian banks fell by 8%.

The 6M Euribor is unchanged at -0.39% compared to previous business day. The 10Y Swap decreased with 2 basis points to -0.13% 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 9 August 2019

Market Information Friday 9 August 2019

According to Statistics Netherlands (CBS), the average daily production of the Dutch industry was 2.2% lower in June 2019 compared to June 2018. Daily production has been shrinking for four months in the Netherlands. The production of electronics decreased the most, while the production of machinery increased. In June, average daily production was 0.8% lower compared to May.

The German federal bureau of statistics published figures that state that in June German exports decreased by 0.1% with respect to May. Economists did not expect a change in export volume. German imports increased by 0.5% compared to May, after it decreased by 0.3% in May.

Figures published today by the Chinese statistical office show that producer prices in China decreased in June 2019 by 0.3% compared to June 2018. Economists expected a decrease of 0.1%. Consumer prices also decreased by 0.3%

The 6M Euribor decreased with 1 basis point to -0.39% compared to previous business day. The 10Y Swap increased with 3 basis points to -0.11% 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 8 August 2019

Market Information Thursday 8 August 2019

The Chinese Yuan has decreased to its lowest level since 2015 valued against the US Dollar. The steps to oppose further depreciation apparently have not yet been successful. The allegations from the US against China, that China did not intervene to hold the deprecation of the Yuan, ensures that the depreciation of the Yuan is closely monitored.

Chinese exports in July have increased despite the increased US trade tariffs. According to customs, next to this increase, imports have decreased less than expected. In comparison to last year exports have increased with 3.3 percent and imports have decreased with 5.6 percent.

Saudi-Arabia has approached other oil producing countries to discuss measures to stop a further decrease of the oil price, as reported by Bloomberg. The decrease of the oil price since the beginning of this month is partly a result of the increased tension between the US and China.

The 6M Euribor decreased with 1 basis point to -0.38% compared to previous business day. The 10Y Swap decreased 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 7 August 2019

Market Information Wednesday 7 August 2019

Yesterday, the US has officially labelled China as a currency manipulator, as a consequence of the strong depreciation of the Yuan relative to the Dollar earlier this week. The US accuses China of not using their substantial reserves in foreign currency to oppose the depreciation. China denies the accusations and states that the currency rates are determined by the market. However, China has taken steps yesterday to oppose further depreciation.

The German federal statistical office reports that the factory orders in Germany in June increased with 2.5% on a monthly basis, versus an expected increase of 0.5%. On a yearly basis the factory orders decreased with 3.6%, where a decrease of 5.2% was expected.

The Reserve Bank of New Zealand (RBNZ) has decreased the interest rate with 50 basis points to 1%, an all-time low. This was a larger decrease than the expected decrease of 25 basis points. In May, the interest rate in New Zealand was already decreased with 25 basis points.

The 6M Euribor is unchanged at -0.37% compared to previous business day. The 10Y Swap decreased with 2 basis points to -0.10% 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.