Market Information Monday 18 January 2021

Market Information Monday 18 January 2021

The Italian government is anticipating a higher budget deficit and national debt than previously expected. According to new figures, the national debt will amount to 158.5 percent of the gross domestic product (GDP) this year, against 155.6 percent last year. The budget deficit is anticipated to be 8.8 percent of GDP this year.

The national statistics office in Beijing reports that the Chinese economy grew by 2.3 percent last year. China is the only large country to report growth in the corona year 2020. China’s gross domestic product increased by 6.5 percent in the fourth quarter of 2020 compared to the same period a year earlier. In the third quarter, the economy grew by 4.9 percent.

The strong rise of bitcoin seems to have come to an end for the time being. According to data from Coinmarketcap, yesterday the digital currency was worth as much as it was in the first week of January. A week and a half ago, the crypto coin reached an absolute record level of more than $ 41,000, thereafter the bitcoin fell sharply, to around $ 31,000.

The 6M Euribor is unchanged at -0.53% compared to previous business day. The 10Y Swap is unchanged at -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 Friday 15 January 2021

Market Information Friday 15 January 2021

President-to-be of the United States, Joe Biden, announced a $1,900 bn bailout package to combat the effects of the corona pandemic. The support package is intended, among other things, to increase the minimum wage and the existing support checks. The package has yet to be approved by the US Congress after the upcoming inauguration.

The German statistical office announced on Thursday that the German economy contracted by 5.0 percent in 2020 compared to 2019. Economists had expected a contraction of 5.1 percent. In 2019, Germany saw a slight growth of the economy of 0.6 percent. The last contraction of the German economy took place in 2009. In that year, the gross domestic product in Germany decreased by 5.7 percent.

Import prices in the United States increased by 0.9 percent in December 2020 compared to November 2020. Economists expected an increase of 0.7 percent in advance. In November 2020, there was also an increase of 0.2 percent in import prizes on a monthly basis. This follows from figures published by the US Department of Labor on Thursday. US export prices increased by 1.1 percent in December 2020 compared to November 2020.

The 6M Euribor is unchanged at -0.53% compared to previous business day. The 10Y Swap decreased with 1 basis point 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 Thursday 14 January 2021

Market Information Thursday 14 January 2021

The Netherlands could be entitled to a claim of EUR 757.4 million to be paid by the European Union, as a compensation for the negative consequences of the Brexit. Ireland is expected to receive more, based on the proposal that the EU countries and the European Parliament are negotiating. The Brexit fund amounts to a total of EUR 4.24 billion. The distribution by member states was discussed for the first time on Wednesday. There was no consensus yet, so the European Parliament will re-examine this distribution.

The Eurozone industry recovered further in November, based on figures from the European statistics agency Eurostat. Industrial production increased by 2.5% compared to October. The increase was mainly due to the production of capital goods. In October production increased by 2.3%, on a monthly basis. The impact of the new lockdowns will probably have a negative effect on industrial activity of many European countries.

The corona crisis has clear consequences for the rental market, according to a report by housing platform Pararius. Due to the absence of foreign employees, rents for furnished and semi-furnished houses in the private sector have decreased. New tenants paid EUR 16.16 per square meter per month in the fourth quarter of 2020. This is 3.7% less than in the same quarter in 2019. The price decreases are particularly evident in the major cities. Prices decreased in Amsterdam (-6.8%), Rotterdam (-4.8%), The Hague (-3.1%) and Eindhoven (-2.9%).

The 6M Euribor decreased with 1 basis point to -0.53% compared to previous business day. The 10Y Swap decreased with 5 basis points to -0.23% 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 13 January 2021

Market Information Wednesday 13 January 2021

According to forecasts by news agency Bloomberg, the euro area economy will contract by 4.1% in the first quarter of 2021, while economists previously forecast an increase of 1.3%. The amended forecast is based upon the recently announced lockdowns to mitigate the corona virus. The vaccinations and a softening of the lockdowns could lead to growth again in the remaining quarters of the year. In that scenario, economist expect potential growth of 4.8% for the second quarter and 3.1% for the third quarter 2021.

Households in the eurozone are still saving a substantial part of income because of the corona pandemic. This is reported by the European statistical office Eurostat. The so-called savings rate, the portion of net income that is put into savings accounts, amounted to more than 17% in the eurozone in the third quarter. That is significantly less than in the second quarter when the savings rate was almost 25%. In previous years, the indicator was 12% on average.

The United Kingdom’s economy is facing “dark times” due to the strongly increasing number of corona infections in the country and the new lockdowns according to Governor Andrew Bailey of the Bank of England (BoE). Bailey also said that recovery is in sight with the rollout of vaccines, but that the coming months will be difficult. Many economists now assume that the UK economy will contract in the first quarter of 2021.

The 6M Euribor increased with 1 basis point to -0.52% compared to previous business day. The 10Y Swap increased 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 12 January 2021

Market Information Tuesday 12 January 2021

Economic recovery in the euro area will be slow, unequal and fragile, credit rating agency Moody’s warns. Moody’s assesses the euro area’s economic forecast as negative. As a result, the euro area as a whole is likely to suffer a loss of creditworthiness in the long run. Moody’s forecasts a rebound in economic growth this year to 4.6% in 2021, after an expected contraction of 7.7% last year. Credit risks are highest in Italy, Cyprus, Spain and Portugal, given their high economic exposure to the crisis and their more limited fiscal space.

The UK has become less attractive for family businesses. As a result of the brexit the UK remains in a reasonably good position compared to other countries and places second, only surpassed by the US. This has been shown by a study carried out by the research institute ZEW (Centre for European Economic Research) on family businesses and which country has the best conditions for them to set up a business.

Consumer prices in the Netherlands increased by 1.3% on average in 2020 compared to 2.6% in 2019. This is according to figures from Statistics Netherlands (CBS). Despite the decrease in inflation, the price increase in the Netherlands in the past year was once again one of the highest in the eurozone.

The 6M Euribor decreased with 1 basis point to -0.53% compared to previous business day. The 10Y Swap increased with 2 basis points 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.