Market Information Monday 13 January 2025

U.S. nonfarm payrolls increased by 256,000 in December, significantly surpassing expectations, while the unemployment rate declined to 4.1%. Annual wage growth slowed to 3.9%, suggesting reduced inflationary pressures. Stock market futures dropped, and Treasury yields rose as traders lowered their expectations for Federal Reserve rate cuts.

California wildfires have caused significant damage, with insured losses potentially exceeding $20 billion, impacting major insurers like Mercury (-17%) and utilities such as Edison International (-13%). Moody’s expects the wildfires to rank among the costliest in state history. Power outages have affected over 246,000 residents, with utilities like PG&E seeing sharp stock declines amid mounting liabilities.

British pension funds face increased collateral demands for Liability Driven Investment (LDI) strategies amid rising bond yields, but the market remains stable, unlike the 2022 crisis. Asset managers like BlackRock emphasize improved resilience, though monitoring collateral remains critical. The sharp selloff in gilts has pushed yields to multi-decade highs, testing the system’s preparedness.

The 6M Euribor increased with 1 basis point to 2.65% compared to previous business day. The 10Y Swap increased with 3 basis points to 2.56% 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.