Market Information Friday 1 March 2019

Market Information Friday 1 March 2019

The economic growth in the US has increased at a lower rate in the fourth quarter of 2018 than in the third quarter of 2018. However, economic growth is still above expectations, according to the US department of Commerce. On annual basis, the economy expanded by 2.6% while economists expected an increase of 2.2%. The growth in the third quarter of 2018 was 3.4% on an annual basis.

The Institute for Supply Management stated that the economic activity in and around the American city of Chicago experienced a significant increase in economic growth. The purchasing managers index that measures the economic activity in Chicago increased from 56.7 in January to 64.7 in February. Economists expected a growth to 57.5.

The German bureau of statistics estimated, based on preliminary numbers, that inflation in Germany has increased. According to these numbers inflation, on annual basis, increased from 1.4% in January to 1.6% in February. Economists expected an increase of 1.5%. German consumer prices also increased on a monthly basis. Consumer prices increased by 0.5% in February, while prices decreased in January by 0.8%. Economists expected an increase of 0.4% in February.

The 6M Euribor is unchanged at -0.23% compared to previous business day. The 10Y Swap increased with 2 basis points to 0.70% 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 28 February 2019

Market Information Thursday 28 February 2019

European Commissioner Valdis Dombrovskis presented the annual country reports on Wednesday. In these reports the European Commission outlines how the individual EU countries are performing, economically and socially. The economies of Italy, Greece and Cyprus face weaknesses. The national debt of Italy is over 130% of the gross domestic product, while the European fiscal rules only allow a maximum of 60%. Only Greece has a higher debt (180%). Greece and Cyprus face a relatively high unemployment rate, low growth expectations, high government debt and a lot of bad credit.

Figures from Statistics Netherlands (CBS) show that the producer prices of the Dutch industry were 1.2% higher in January than in January 2018. The price increase is higher than in December 2018, when products were 0.6% more expensive than a year before. Compared with December, the selling prices in January rose by more than 1%. On the other hand, the price of petroleum fell compared to a year before, by almost 7%. In January 2019, a barrel of crude North Sea Brent oil cost almost 52 Euro.

The summit between the American President Donald Trump and North Korea’s leader Kim Jong Un was cut short on Thursday, without a deal. Trump wanted to reach agreement to abandon the North Korean nuclear arsenal. In exchange for abandoning the nuclear weapons, Kim demands that the US dismantle their nuclear defense system for the protection of American allies in the region. According to Trump the summit ended because Kim required the sanctions against North Korea to be lifted entirely.

The 6M Euribor is unchanged at -0.23% compared to previous business day. The 10Y Swap increased with 3 basis points to 0.68% 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 27 February 2019

Market Information Wednesday 27 February 2019

Prime Minister Theresa May submits a proposal to the House of Commons to vote in favor of postponement of Brexit. May wants to put this new deal to the vote by 12 March at the latest. If this proposal is rejected, the House of Commons may vote for a departure without a deal on the 13th of March. If there is no majority for this either, then a vote will be taken for postponement on the 14th of March.

Figures from Statistics Netherlands (CBS) and Kadaster show that in January 2019 on average EUR 302,157 was paid for a house. This is the first time that the EUR 300,000 limit has been broken. In the past year, the monthly increase in the housing price index was around 9% on an annual basis. However, the number of homes sold declined since 2018. On average, 10% less homes were sold in 2018 than in 2017.

The European Parliament and Member States have agreed that banks and other financial service providers in the European Union will be granted a 2-year postponement for an alternative for the Euribor and Eonia base rates. The extra time given to banks and other financial services providers should ensure a smooth transition to new standards.

The 6M Euribor is unchanged at -0.23% compared to previous business day. The 10Y Swap increased with 1 basis point to 0.65% 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 26 February 2019

Market Information Tuesday 26 February 2019

Preliminary figures published by the United States Department of Commerce show that wholesale inventories have increased in December 2018 compared to November 2018. Wholesale inventories increased by 1.1% in December compared to the previous month. Economists expected an increase of 0.3%

Yesterday, the Chinese government has again put out a warning concerning the financial risks in the country, caused by highly indebted state enterprises and local governments. According to the vice-chairman of a commission about bank- and insurance sector, measures have to be taken to combat these financial risk factors. The warning followed up on comments from president Xi Jinping las Friday, who stated that financial security is of the utmost importance for national security.

The Dutch Central Planning Bureau stated that global trade volume has decreased by 1.7% in December 2018 compared to November 2018. In November, a decrease of 1.8% was recorded. Global manufacturing production fell by 0.1%, compared to a decrease of 0.2% in the previous month.

The 6M Euribor is unchanged at -0.23% compared to previous business day. The 10Y Swap increased with 1 basis point to 0.64% 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 25 February 2019

Market Information Monday 25 February 2019

Yesterday, British Prime Minister Theresa May announced that she wants to postpone her Brexit deal with Brussels. The Prime Minister would want to postpone the departure of the United Kingdom from the European Union on 29 March 2019 for two months. However, the Members of Parliament are less positive about the continuous postponement of the Brexit deal.

US President Donald Trump announced that he postponed import tariffs USD 200 billion for China due to positive conversations. In addition, he announced a summit with the Chinese president Xi Jinping in Mar-a-Lago, where the agreements will be recorded. According to Trump, the top with Xi will only continue if both countries continue to make progress.

This week, macroeconomic figures on European consumer confidence and German, French and Italian inflation will be published. In the United States, figures on house sales and prices, economic growth and various producer price indices will be published.

The 6M Euribor is unchanged at -0.23% compared to previous business day. The 10Y Swap decreased with 3 basis points to 0.63% compared to previous business day.

The following macro-economic figures will be published in the coming week:
– Gross Domestic Product (GDP) United States
– Purchasing Managers’ Index (PMI) Eurozone
– Purchasing Managers’ Index (PMI) United States
– Unemployment Eurozone
– Nominal wages United States

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