Market Information Tuesday 15 January 2019

Market Information Tuesday 15 January 2019

Statistics Netherlands (CBS) reported that exports increased by 0.6% in November 2018 compared to November 2017. The increase is higher than in October 2018, when an increase of 5.1% was measured. In November, higher exports were mainly driven by machines and equipment and petroleum products. According to Statistics Netherlands, the conditions for export in January are less favorable than they were in December.

In addition, Statistics Netherlands announced that the turnover of retail trade in the Netherlands in November 2018 was 4.1% higher than in November 2017. Sales volumes increased by 3.2%. Online sales increased by almost 20%.

Eurostat reported that the industrial production in the eurozone increased by 1.7% in November 2018 compared to October 2018. This is the sharpest decline since February 2016. Economists expected a decline of 1.5%. In the European Union, industrial production declined by 1.3%, compared to an increase of 0.1% in the previous month.

The 6M Euribor is unchanged at -0.24% compared to previous business day. The 10Y Swap decreased with 1 basis point to 0.79% 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 14 January 2019

Market Information Monday 14 January 2019

China’s exports decreased unexpectedly by 4.4% in December 2019, imports also decreased by 7.6%. Economists had expected an increase of 2% in exports and an increase of 4.5% in imports. The figures indicate that the trade war with the United States negatively influences the Chinese economy, as does the weakening global economy.

The European Court of Auditors wrote in a letter to the European Parliament that the European Parliament must take action to ensure that the European Central Bank (ECB) makes all documents relating to banking supervision available. The European Court of Auditors believes it cannot do its work properly, because banking supervision entails significant risks to the public purse, say the auditors, but they will not be in a position to carry out a proper audit of these activities unless the ECB adjusts its stance regarding access rights.

This week capital markets are mainly focused on the vote in the British parliament on the brexit deal of Prime Minister Theresa May on Tuesday. In addition, the developments around the China-US trade war and the continued shutdown of the US government remain of interest on the capital market. On the macroeconomic front figures will be published on the European industrial production and inflation. Statistics Netherlands (CBS) will publish figures on store sales, trade and unemployment.

The 6M Euribor is unchanged at -0.24% compared to previous business day. The 10Y Swap decreased with 1 basis point to 0.80% compared to previous business day.

The following macro-economic figures will be published in the coming week:
– Purchasing Managers’ Index (PMI) Eurozone
– Producer Price Index (PPI) United States

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Friday 11 January 2019

Market Information Friday 11 January 2019

Yesterday, the European Central Bank (ECB) released minutes of the December policy meeting. As a result of the strong labor market and increased wages, the ECB sees the outlook of the European economy as solid. In the meeting, concerns of the ECB regarding increased risks in the market were stressed, which could potentially delay interest rate increases.

The United States Department of Labor announced that the amount of initial jobless claims has decreased. In the first week of 2019, 216,000 requests were filed, compared to 233,000 in the previous week. Economists expected 226,000 requests.

This morning, Statistics Netherlands (CBS) reported that 3,144 business and institutions (excluding one-man businesses) declared bankruptcy in 2018. This is the lowest number of bankruptcies this century. In 2017, 3,291 companies filed for bankruptcy.

The 6M Euribor is unchanged at -0.24% compared to previous business day. The 10Y Swap decreased with 1 basis point to 0.81% 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 January 2019

Market Information Thursday 10 January 2019

The Federal Reserve (FED) announced to take a more cautious stance on the need for interest rate increases. Although the decision in December to increase interest rates was taken unanimously, several participants indicated being in favor of keeping interest rates unchanged in the last published minutes. Because of moderate inflation and increased concerns about economic growth in the US.

Yesterday, President Donald Trump walked away from a negotiation regarding the shutdown. Several government services have been closed for more than 19 days because of disagreement on the new budget. This is one of the longest shutdowns in American history. Both the Republican president Trump and the Democrats, who have recently won a majority in the congress, stand firm to their point of view.

The research agency SEO calculated that if there is a no-deal deal, it will cost the Netherlands up to 2030, at least EUR 34 billion, which is EUR 2.8 billion per year. This amounts to EUR 164 per year for every resident of the Netherlands. The possibility that the United Kingdom and the EU do not reach agreement on the 30 March is likely. Last weekend, the British Prime Minister Theresa May announced that she wants a vote on her brexit deal around the 15th of January 2019.

The 6M Euribor is unchanged at -0.24% compared to previous business day. The 10Y Swap increased with 1 basis point to 0.82% 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 January 2019

Market Information Wednesday 9 January 2019

Statistics Netherlands (CBS) reports that the average daily production in the manufacturing industry in November has increased by 2,1% compared to November 2017. This increase is smaller than the increase in October. The largest production increase was in the metal products industry. This sector produced 7% more than a year earlier. On the other hand, the pharmaceutical and chemical sector produced about 7% less than a year earlier. In addition, CBS reports that producers in December are positive about the expected economic activity in the manufacturing industry.

The optimism about the negotiations between the United States and China has a positive effect on the stock market. Both the Japanese Nikkei and China’s Shanghai composite ended around 1% positive. In addition, the European stock markets opened positive. Lastly, the prices of oil increased. The price for barrel WTI rose above USD 50 overnight.

The Dutch State has benefited from the higher bond prices and lower interest rates. An old bond from 2013, has raised EUR 1.55 billion. This week several European countries issued government bonds. Belgium even raised EUR 28.5 billion with a ten-year loan.

The 6M Euribor is unchanged at -0.24% compared to previous business day. The 10Y Swap increased with 1 basis point to 0.81% 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.