Market Information Friday 24 October 2025

Dutch households hold a record amount in savings despite calls from Brussels and the financial sector to invest more. Political parties like GroenLinks-PvdA and D66 are cautious about encouraging investments due to financial risks, while BBB, VVD, and FvD focus on lower taxes for realized returns. The Netherlands Bureau for Economic Policy Analysis reveals that some parties plan to impose extra taxes on investments in shares. The Ministry of Finance sees no fiscal incentive for investing until the new box 3 tax system in 2028. VVD supports a slight push towards investing based on the Swedish model, while CDA focuses on education and win-win loans for SMEs.

Major producers of food, consumer goods, and cars, including Volvo Cars and Unilever, reported better-than-expected results on Thursday, alleviating concerns over U.S. tariffs. Volvo Cars benefitted from significant cost savings, boosting its stock. Unilever showed revenue growth driven by beauty products. Companies are finding ways to offset higher costs, fuelling optimism in stock markets. Nonetheless, some companies, like Michelin, face challenging conditions. In the U.S., wealthier consumers continue to support spending, while inflation concerns trouble lower incomes. European companies are expected to see only a modest profit increase, although most firms have exceeded analyst expectations.

The ESRB (European Systemic Risk Board) warns that governments need to act to prevent stablecoins from destabilizing the financial system. The European crypto law contains gaps that could lead to a crisis. Stablecoins, like Tether and Circle, are digital dollars widely used in crypto transactions and pose risks by potentially becoming unstable during crises. ESRB compares stablecoins to money market funds, which relied on government support during instability. ESRB recommends banning Tether and Circle due to non-compliance with European regulations, despite Circle holding a MiCA license in the EU. Critics caution that total bans may hinder innovation, advocating instead for stricter regulations.

The 6M Euribor decreased with 1 basis point to 2.10% compared to previous business day. The 10Y Swap increased with 2 basis points to 2.60% 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.