Market Information Monday 26 August 2024

The energy price cap in the United Kingdom will be raised by 10% starting October 1, leading to higher energy bills for millions of households. This increase coincides with new rules that limit the number of pensioners eligible for heating subsidies. The cap is expected to rise again by 3% in January, further fuelling inflation and making it more difficult for the government to fulfil its promise of lower bills.

The U.S. Federal Reserve is on the verge of lowering interest rates to prevent further weakening of the labor market, as Fed Chair Jerome Powell indicated during the Jackson Hole symposium. Although Powell did not provide details on the size of the rate cut, the market expects a reduction of 25 or 50 basis points in September. Powell emphasized that future decisions depend on economic data. Financial markets responded positively to his remarks, with rising stock prices and a declining dollar. The upcoming jobs report will be crucial for further rate cuts.

Business confidence in France slightly increased in August, according to a report from the French statistics agency Insee on Friday. The index rose from 94 to 97 but remains below the long-term average of 100.

The 6M Euribor is unchanged at 3.41% compared to previous business day. The 10Y Swap decreased with 2 basis points 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.