Market Information Monday 5 August 2019

Market Information Monday 5 August 2019

Kristalina Georgieva has been nominated by the European Commission as the new top woman of the International Monetary Fund. Therefore, it is likely that the Bulgarian former World Bank director will succeed Christine Lagarde, who will become president of the European Central Bank. Other countries will still have to officially approve the nomination, but traditionally Europe nominates the president of the IMF, while the US nominates the president of the World Bank. The Dutch former finance minister Jeroen Dijsselbloem was also mentioned as a possible candidate, but he withdrew after it became clear that he received insufficient support from Eastern European countries, France and Italy.

Figures from the US Department of Labor show that employment in the United States increased less in July 2019 than the month before. The change in non-farm payrolls amounted to +164,000 in July, while 193,000 new jobs were added in June 2019. The average hourly wage increased by 0.3% on a monthly basis.

The monthly purchasing managers index of Markit and Caixin shows that the service sector in China grew less rapidly in July 2019 than the month before. The index fell from 52.0 to 51.6. Economists had expected the index to remain constant at 52.0. The composite index, which also contains figures from the industry, did rise from 50.6 to 50.9.

The 6M Euribor is unchanged at -0.36% compared to previous business day. The 10Y Swap decreased with 5 basis points to -0.07% 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 2 August 2019

Market Information Friday 2 August 2019

The yield on Dutch 10-year government bonds has reached a new low on Thursday. The yield decreased to -0.399%. The yield has declined even further since it dropped below zero at the end of May. Investors prefer sovereign bonds over stocks due to perceived risks in the stock market, as signs from the US, China and Europe indicate that the global economy is cooling down. The Japanese Nikkei lost 2.1% and ended on 21,087.16 points on Thursday, after president Trump announced new import tariffs, which will become effective on September first. The Dow-Jones index, the S&P 500 and the Nasdaq lost 1.1%, 0.9% and 0.8% respectively.

The United States Department of Labor announced that the amount of initial jobless claims has increased by 8,000 claims. Last week, the amount of initial jobless claims totalled 215,000 requests, compared to 207,000 in the previous week. Economists expected 214,000 requests this week.

According to the U.S. Department of Commerce, construction spending in the United States decreased by 1.3% in June compared to May, economists expected an increase of 0.3%. In May, construction spending decreased by 0.5%.

The 6M Euribor is unchanged at -0.36% compared to previous business day. The 10Y Swap decreased with 3 basis points to -0.02% 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 1 August 2019

Market Information Thursday 1 August 2019

The Federal Reserve (Fed) reduced its policy interest rate for the first time in more than ten years. The Fed decided to decrease the official rate with 25 basis points to a bandwidth of 2.00% and 2.25%. The policy committee states that the US economy has been performing well, however there are concerns about inflation and economic growth. The policy committee does not exclude any further decrease of its policy interest rate.

Eurostat reports that the unemployment rate in the Eurozone in June decreased to 7.5%. In May, the unemployment rate was 7.6%. The unemployment rate in the Eurozone has not been this low since July 2008. In the European Union, the unemployment rate in June was 6.3%.

Additionally, Eurostat reports that inflation in the Eurozone in July decreased to 1.1% on an annual basis. In June, inflation was 1.3%. The inflation rate in June is the lowest inflation reported since the beginning of 2018. The inflation reported was according to the expectations of economists.

According to market researcher Institute for Supply Management (ISU), the activity in the industry in and around the American city Chicago decreased in June compared to the month before. The purchasing managers index decreased from 49.7 in June to 44.4 in July.

The 6M Euribor decreased with 1 basis point to -0.36% compared to previous business day. The 10Y Swap decreased with 4 basis points to 0.01% 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 31 July 2019

Market Information Wednesday 31 July 2019

Based on preliminary statistics from the German Federal Statistical Office inflation in Germany in July 2019 increased to 1.7 percent on an annual basis compared to 1.6 percent on an annual basis in June 2019. Economists generally expected an inflation rate of 1.5 percent.

The European Commission (EC) reported that eurozone consumer confidence fell in July 2019 compared to previous month. The indicator decreased from 103.3 in June to 102.7 in July, the lowest level in more than three years. According to the EC, the reduction in confidence was caused by developments in the industrial and construction sectors.

The Federal Reserve is expected to reduce its policy interest rate today for the first time in more than ten years. Analysts expect the policy committee to decide on a decrease of 25 basis point to a bandwidth of 2.00 and 2.25 percent. Although the American economy has been performing well for years, there are concerns about several risks. The main risks are the continuing trade war with China and tensions with other trading partners, such as the European Union and Mexico.

The 6M Euribor increased with 1 basis point to -0.35% compared to previous business day. The 10Y Swap is unchanged at 0.05% 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 July 2019

Market Information Tuesday 30 July 2019

Statistics Netherlands stated that producer confidence in the industry has increased in July 2019. Producer confidence increased from 3.3 in June to 3.9 in July. The last twenty years producer confidence was 1.0 on average.

Research agency GfK announced that consumer confidence has decreased slightly in Germany. The index measuring consumer confidence was 9.7 in July 2019, compared to 9.8 in June. This is in line with economists’ expectations.

INSEE stated that the French economy in the second quarter of 2019 has grown by 0.2% on a quarter on quarter basis, compared to 0.4% in the first quarter. Economists expected a growth of 0.3%. The growth was caused by increased domestic demand.

The 6M Euribor increased with 1 basis point to -0.36% compared to previous business day. The 10Y Swap decreased with 1 basis point to 0.05% 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.