Market Information Monday 26 May 2025

The Netherlands has become less attractive for foreign direct investment (FDI), particularly from the U.S., due to weakening fundamentals like education, demographics, infrastructure, and regulatory burdens. According to the American Chamber of Commerce (AmCham), the country attracted only 1% more FDI from 2019–2023, compared to significantly higher growth in surrounding countries. Strict application of EU regulations and limited use of AI are also harming productivity and competitiveness. AmCham urges long-term, tailored policies to restore investor confidence.

Donald Trump has threatened to impose a 50% import tariff on EU goods starting June 1st and warned Apple it could face penalties if it doesn’t move iPhone production to the U.S. These threats shook investor optimism that had returned after a temporary trade truce with China. Tensions with the EU are rising as Trump grows impatient with slow negotiations. Despite the dramatic rhetoric, markets only saw a 1% dip, reflecting investor skepticism about the actual implementation of these threats. However, Trump and Von der Leyen have agreed to postpone the measures until 1st of July.

US bonds and stocks fell after a weak Treasury auction, highlighting concerns about rising debt as Trump’s tax cut bill passed the House. The 30-year yield rose above 5.1%, and the S&P 500 dropped 1.6%. Analysts expect the bill to add at least $3 trillion to US debt. European markets also declined amid broader fiscal worries.

The 6M Euribor increased with 1 basis point to 2.12% compared to previous business day. The 10Y Swap decreased with 4 basis points to 2.57% 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.