Market Information Monday 18 September 2023

After the interest rate decision of the European Central Bank last week, the focus in the upcoming week will shift to the decision of the Federal Reserve, followed by that of the Bank of England. While the ECB raised interest rates last week, the U.S. Central Bank is likely to keep interest rates unchanged this coming Wednesday. The FedWatch Tool shows that the market expectation for an unchanged policy rate is currently 97%.

The oil price continued to rise on Friday. With a settlement at $90.77, a barrel of West Texas Intermediate (WTI) became 0.7% more expensive. On a weekly basis, a barrel of WTI became 3.7% more expensive. Oil prices are trading near their yearly highs as Saudi Arabia and Russia maintain their production cuts to create tightness in the market.

The confidence of American consumers in the economy continued to decline in September 2023, while inflation expectations were also revised downwards. This was revealed on Friday in preliminary figures from the University of Michigan. The consumer confidence index decreased from 69.5 to 67.7.

The 6M Euribor increased with 4 basis points to 4.04% compared to previous business day. The 10Y Swap increased with 7 basis points to 3.21% 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.