Market Information Friday 19 September 2025

Global stock markets reached a new high on Thursday, driven by the Federal Reserve’s interest rate cut, which strengthened the U.S. dollar against major currencies. Wall Street saw all its major indices rise, with the Nasdaq gaining over 1%. Intel shares soared by more than 25% following Nvidia’s $5 billion investment. The Dow Jones, S&P 500, and Nasdaq Composite all reported gains. The Fed cut rates by 25 basis points and signals further reductions this year.

The Bank of England has maintained its key interest rate at 4.00%, following a 25 basis point cut in August. The rate decision was made with a vote of 7 to 2, with two members favouring a further cut to 3.75%. Despite a significant desinflation over the past two and a half years, the bank remains focused on reducing persistent inflationary pressures to achieve its 2% target. August inflation was reported at 3.8%, with a slight increase anticipated in September before aligning with the target. Analysts predict another rate cut may occur in November to stimulate growth. The Bank of England also plans to reduce its balance sheet by 70 billion pounds over the next year.

Stablecoins, cryptocurrencies linked to the US dollar, have the potential to improve the financial system. However, European regulators are concerned due to Donald Trump’s strong push for digital dollars, which could trigger a banking crisis if a stablecoin crashes. The Genius Act signed by Trump, aimed at promoting stablecoins, is less stringent than EU regulations. USDC’s warning about insufficient reserves in extreme scenarios reflects ongoing risks. Christine Lagarde of the ECB has called for stricter regulations, highlighting the risks of stablecoins on financial stability.

The 6M Euribor decreased with 1 basis point to 2.08% compared to previous business day. The 10Y Swap increased with 4 basis points to 2.67% 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.