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.

Market Information Tuesday 30 June 2020

Market Information Tuesday 30 June 2020

Statistics Netherlands reported that Dutch retail turnover increased with 8.2% in May 2020 compared to May 2019. Both the food sector and the non-food sector realized a higher turnover than in the same month previous year. Hardware stores realized record sales for the third consecutive month. Supermarkets and specialty stores also recorded strong turnover growth. Clothing and shoe stores again recorded a lower turnover.

Figures from the Chinese government show that activity in Chinese industry increased slightly in June 2020 compared to last month. The purchasing managers index for June amounted to 50.9, compared to 50.6 in May 2020. The services sector also showed more activity than last month; the purchasing managers index rose from 53.6 to 54.4 in June.

The German federal statistics agency Destatis announced that inflation in Germany increased in June 2020. Inflation reached 0.9% this month, compared to 0.6% in May. This brings inflation back to the same level as in April 2020. Based on the European harmonized measurement method, inflation in June was 0.8% on an annual basis.

The 6M Euribor decreased with 1 basis point to -0.28% compared to previous business day. The 10Y Swap increased with 1 basis point 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.