Market Information Friday 05 June 2026

Currency markets reflect geopolitical sensitivity and diverging monetary policy paths, with the dollar easing to an index level of 99.2 after hitting a two-month high, while the euro rose to $1.1636 on expectations of an ECB rate increase to 2.25% next week. The Japanese yen remains under pressure near 160 per dollar, a key intervention threshold, as rising energy-driven inflation supports expectations of further rate hikes in Japan. Broader macro conditions point to persistent inflation risk linked to Middle East tensions, alongside relative resilience in the US economy supporting underlying dollar strength.

US equity markets show rotation dynamics as the Dow rose 1.7% to a record 51,549 while the S&P 500 edged up 0.26% to 7,573, even as the Nasdaq fell 0.19% due to a 2.8% drop in semiconductor stocks. The shift away from technology follows a strong rally, with investors reallocating into healthcare and financials, while concerns persist around private credit liquidity and geopolitical risks affecting inflation via oil prices.

Private credit markets in the US are facing renewed stress as redemption requests rose to about $7.1bn in Q1 across major funds, with Q2 data indicating continued pressure from valuation concerns and limited transparency. Withdrawal requests have exceeded typical quarterly repurchase limits, often around 5%, forcing funds to cap redemptions and highlighting liquidity mismatches in semi-liquid structures. The trend points to weakening investor confidence in the asset class, particularly amid exposure concerns and slower fundraising, raising broader questions about stability in the growing private credit segment.

The 6M Euribor increased with 1 basis point to 2.55% compared to previous business day. The 10Y Swap decreased with 1 basis point to 3.06% 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.