Market Information Friday 6 December 2024

Oil prices fluctuated as OPEC+ delayed planned output hikes until 2026, citing a potentially oversupplied market in 2025, while global crude production and exports surged. Market dynamics are influenced by soft Chinese demand, potential Trump policies, and geopolitical factors, with OPEC+ prioritizing price stability amid uncertainty. Analysts expect clearer market signals by March, considering sanctions on Iran, China’s economic response, and evolving US policies.

Market expectations for a Bank of Japan rate hike in December dropped sharply following reports suggesting caution within the BOJ, despite board member Nakamura not opposing higher rates. The yen rose, and bond futures fell amid mixed signals, as Nakamura’s comments were less dovish than anticipated but emphasized reliance on upcoming data. Speculation remains complicated by BOJ communication, wide global rate differentials, and uncertainty in inflation and wage growth trends.

Bitcoin’s price surged past $100,000, fueled by optimism over a pro-crypto Trump administration and institutional inflows, with analysts predicting a potential rise to $200,000 by 2025. Regulatory changes and increasing adoption as a “store of value” asset are seen as key drivers. Institutional investments, including spot ETFs and corporate allocations, continue to dominate demand.

The 6M Euribor is unchanged at 2.63% compared to previous business day. The 10Y Swap increased with 4 basis points to 2.13% 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.