Market Insights

Market Information Monday 22 January 2024

In December, retail sales in the United Kingdom fell more sharply than expected, with a monthly volume decline of 3.2% compared to economists’ anticipated decrease of 0.5%. On an annual basis, volumes dropped by 2.4%, contrary to economists’ expectations of a 1.2% increase. Volumes were 4.8% lower than in February 2020, just before the onset of the COVID-19 crisis. Despite these declines, the value of sales was 13.9% higher than pre-COVID levels, attributed to increased prices.

Savings deposit rates in the Netherlands have recently dropped across all terms, following a period of rising rates over the past 18 months. This shift is linked to declining market interest rates due to inflation normalization. For instance, the average interest for a five-year fixed deposit fell from 3.6% to 2.9%. Dutch consumers have increased their allocation to fixed deposits, reaching nearly 17% in November, the highest in a decade, according to De Nederlandsche Bank.

In December, passively managed index funds and ETFs in the United States surpassed their actively managed counterparts in total assets, with $13.3 trillion compared to $13.2 trillion for active funds. This shift reflects the enduring popularity of ETFs and a trend toward passive investment strategies. Over the past decade, passive funds have steadily gained market share, with the launch of the first index fund by Vanguard in 1976 influencing this transformation.

The 6M Euribor increased with 7 basis points to 3.93% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.72% 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.

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