Market Information Friday 7 June 2024

Global central banks are increasingly investing in gold, making it the second-largest asset in their reserves, surpassing the Euro for the first time. The US dollar remains the top asset, but its global share has declined to 48% from around 60% in 2017. In the first quarter of 2024, central banks set a new record by purchasing a net total of 290 tonnes of gold. This trend highlights a significant shift in the composition of central banks’ reserves.

Retail sales in the eurozone decreased by 0.5 percent in April on a monthly basis, following a 0.7 percent rise in March, while economists had forecasted a 0.1 percent decline. Compared to April of the previous year, retail sales remained unchanged. Excluding food, sales dropped by 0.1 percent month-on-month in April but increased by 0.4 percent year-on-year. These figures were released by Eurostat on Thursday.

The European Central Bank reduced the interest rate by 25 basis points on Thursday, meeting investors’ expectations. This adjustment brings the refi rate to 4.25 percent, the marginal lending facility to 4.50 percent, and the deposit facility to 3.75 percent. Recent figures for May revealed that inflation in the eurozone increased to 2.6 percent, surpassing the forecasted 2.5 percent. In April, inflation stood at 2.4 percent. Additionally, core inflation, which is relevant for the ECB, rose from 2.7 to 2.9 percent.

The 6M Euribor decreased with 2 basis points to 3.74% compared to previous business day. The 10Y Swap increased with 4 basis points to 2.79% 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.