Market Information Friday 27 October 2023

The European Central Bank announced on Thursday afternoon that it will keep the interest rates unchanged. The base rate, the marginal lending facility, and the deposit facility will remain at 4.50%, 4.75%, and 4.00%, respectively.

In the third quarter, the U.S. economy showed significantly stronger growth, as reported by the U.S. Department of Commerce on Thursday. During the third quarter, the economy expanded by 4.9%, a substantial increase from the 2.1% growth seen in the second quarter. Leading economists had, on average, anticipated a growth rate of 4.7%. Additionally, the Personal Consumption Expenditures Price Index (PCE) demonstrated a rise of 2.9%, compared to the 2.5% figure in the second quarter.

On Thursday, the crude oil price experienced a significant drop, with a barrel of West Texas Intermediate settling at $83.21, 2.6% lower. Initially, reports of a potential brief Israeli incursion into Gaza kept oil prices stable. However, as the day progressed, the oil markets began to lose ground.

The 6M Euribor decreased with 1 basis point to 4.09% compared to previous business day. The 10Y Swap decreased with 4 basis points to 3.40% compared to previous business day.