Market Information Monday 25 September 2023

The European Commissioner for Trade, Valdis Dombrovskis, described the trade relationship between the European Union and China as “very unbalanced” during his visit to China. Dombrovskis highlights this because the EU faces a trade deficit of € 400 billion with China, with concerns also raised about subsidies to Chinese electric vehicle manufacturers. Both the EU and the United States are considering investigations into unfair subsidies for Chinese electric cars.

The United States is seriously preparing for a potential government shutdown starting October 1, caused by delay tactics from some Republican members of Congress. This marks the second possible shutdown this calendar year. A shutdown would have implications for government employees, military personnel, and social benefits. The previous time a shutdown was threatened, there was a significant short-term surge in rates on US short-term government bonds.

Oil prices rose due to concerns over Russia’s export ban on gasoline and diesel, following reduced shipments and an increase in European diesel prices. Experts expect Russia will maintain the ban for at least a month to capitalize on a greater price difference between crude and refined oil.

The 6M Euribor is unchanged at 4.07% compared to previous business day. The 10Y Swap is unchanged at 3.28% 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.