Market Information Monday 20 January 2025

The European Union and Mexico have finalized a revamped free-trade agreement to enhance economic security, de-risk supply chains, and cut tariffs on various products amid incoming U.S. President Donald Trump’s threats of imposing tariffs. The deal includes expanding EU exports in sectors like financial services, opening government contracts to equal competition, and lowering tariffs on agri-food items. This agreement, following negotiations since 2016, coincides with the EU’s broader strategy to bolster trade, defense and solidify partnerships amidst global trade tensions.

On Friday, the IMF raised its global growth forecast for 2025 to 3.3%, driven by stronger U.S. growth, despite downturns in Germany and France, and forecasted global inflation to decrease to 4.2%. The IMF warned against protectionist policies, like proposed tariffs by incoming U.S. President Donald Trump, which could disrupt global trade. The IMF is also monitoring potential U.S. deregulation of digital currencies, emphasizing the need for adequate oversight.

On Friday, Bitcoin surpassed $100,000 following U.S. inflation data that boosted hopes for Federal Reserve interest rate cuts; other cryptocurrencies like Ethereum and XRP also saw significant gains. The anticipation of Donald Trump’s impending inauguration and his pro-crypto agenda is expected to further drive up digital asset prices, though concerns remain about potential impacts from his immigration and tariff policies. Crypto markets are optimistic about imminent regulatory developments, with bipartisan support suggesting rapid progress on crypto legislation this year.

The 6M Euribor increased with 1 basis point to 2.67% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.48% 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.