Market Information Friday 20 December 2024

Oil prices steadied near $71 a barrel as U.S. equities recovered, but gains were capped by a strong dollar and concerns over China’s slowing gasoline demand. Crude inventories in the U.S. fell for a fourth week, while traders balanced geopolitical risks and potential supply shocks against oversupply fears. Oil markets are on track for their narrowest annual price range since 2019 amidst muted swings post-pandemic and global conflicts.

Canada’s new finance minister, Dominic LeBlanc, emphasized the need to preserve fiscal capacity to address potential economic shocks. LeBlanc replaced Chrystia Freeland after her abrupt resignation and plans to address deficits driven by tax relief and indigenous liabilities while preparing the 2025 budget. His approach draws inspiration from past finance ministers Paul Martin and Jean Chretien, balancing fiscal challenges with cautious optimism about economic recovery post-COVID.

Bank of England Governor Andrew Bailey stated that market speculation on a February rate cut is reasonable but cautioned against certainty due to economic uncertainties. The BOE held rates at 4.75%, with some committee members advocating for immediate cuts, reflecting a dovish stance despite rising wage growth and inflation concerns. Bailey noted the labor market is normalizing, suggesting inflationary pressures from wage growth may ease.

The 6M Euribor decreased with 1 basis point to 2.65% compared to previous business day. The 10Y Swap increased with 7 basis points to 2.32% 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.