Market Information Monday 17 August 2026

Europe’s heatwaves are exposing a vast insurance gap, with Moody’s estimating last summer’s extreme heat cost 43 billion euros in lost economic output while generating only around 500 million euros in insured payouts. Traditional business interruption insurance rarely covers heat-related disruption, as extreme temperatures cause operational losses rather than physical damage, leaving the majority of companies unprotected. Parametric insurance, which pays out automatically when temperatures breach predefined thresholds, is emerging as a partial solution, with the European market for such products expected to reach 7.93 billion dollars by 2031.

Foreign borrowers are rushing into Asia-Pacific bond markets at a record pace, with kangaroo bond sales in Australian dollars up 40% to around 42 billion dollars this year and Chinese panda and dim sum issuance rising more than 60% in the first half. Global syndicated bond sales hit a record above 4 trillion dollars by late July, as the AI investment boom and high government deficits drive borrowing needs higher across major markets. Bankers say the shift reflects both a structural rise in Asian investor demand and a push to diversify funding sources ahead of intensifying competition from hyperscalers in traditional bond markets.

Russia’s economy returned to growth of 1.3% year-on-year in the second quarter, but analysts warn the headline figures mask deepening strain, with the budget deficit on course to double compared to 2025 and oil and gas revenues running at just 64% of their level two years ago. Inflation, brought down to the 4% target late last year, is expected to rise again, while consumers are increasingly trading down to cheaper products. Analysts do not expect economic pressure alone to end the war, with some warning that worsening conditions could instead incentivise Putin to escalate rather than negotiate.

The 6M Euribor decreased with 1 basis point to 2.65% compared to previous business day. The 10Y Swap increased with 7 basis points to 3.23% 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.