Market Information Friday 06 November 2026

Asian equity markets fell sharply as concerns over an abrupt slowdown in the AI investment boom triggered a broad technology sell-off. Japan’s Nikkei 225 dropped as much as 7%, while South Korea’s Kospi fell 8.5%, triggering a temporary trading halt, as investors reduced exposure to crowded AI-related positions. The risk-off move also boosted demand for Japanese government bonds, pushing the 10-year yield down 14 basis points to 2.63%.

The Bank of England raised its benchmark rate by 25 basis points to 4.0%, its first increase since 2023, as elevated energy costs continue to feed into inflation. UK inflation is projected to approach 5% by mid-2027, more than twice the central bank’s 2% target, and policymakers signaled that another increase may be necessary if energy pressures persist. The decision reinforces the broader global shift toward tighter monetary conditions despite risks to economic growth.

The Brazilian central bank halted its rate-cutting cycle and kept the benchmark rate at 13.75%, as concerns over inflation, public finances and energy prices outweighed signs of weaker economic growth. Following the election, Brazil’s currency weakened and longer-term borrowing costs rose, while government debt has reached 82.9% of GDP and some economists now expect rates to remain unchanged through 2027 or even into 2028. The shift highlights growing sensitivity of emerging markets to fiscal credibility and persistent inflation risks.

The 6M Euribor is unchanged at 3.01% compared to previous business day. The 10Y Swap decreased with 3 basis points to 3.33% 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.