Market Information Friday 17 October 2025

European markets are set for a red opening amid rising concerns over bankruptcies and issues at regional U.S. banks. The macroeconomic agenda is quiet. Wall Street remains volatile due to potential U.S. tariffs on China and auto-industry bankruptcies. The ongoing U.S. government shutdown leaves the macro agenda empty. Company news highlights various developments, with Nestlé planning price cuts and Salesforce aiming for growth. Oil prices dropped slightly due to increased inventories.

Industrial activity in the Mid-Atlantic region of the U.S. unexpectedly contracted in October, with increasing prices for inputs and goods indicating potential inflation growth. The Philadelphia Fed’s activity index dropped to -12.8 from 23.2 in September, signalling contraction. Despite rising new orders, shipments declined. Input prices paid by factories increased, with 49% reporting higher costs, while product prices received also rose. These trends suggest tariffs are driving inflation, although opinions vary on whether it’s a temporary or enduring effect.

Olaf Sleijpen, president of De Nederlandsche Bank, highlights the challenges in international cooperation for stricter regulation of non-bank financial entities, such as shadow banks, which now account for half the credit market but often lack oversight. Following the financial crisis, there was strong consensus for regulation, but that unity has decreased. High valuations and vulnerable shadow banks pose significant risks. Sleijpen argues for better data on non-bank activities, and emphasizes the need for a global approach, with Europe taking the lead. Stablecoins pose risks due to reliance on U.S. Treasury bonds.

The 6M Euribor decreased with 1 basis point to 2.10% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.56% 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.