Market Information Monday 27 May 2024

Germany’s economy grew in the first three months of this year in line with an earlier estimate, according to new data from the German statistics office Destatis released on Friday morning. On a quarterly basis, economic growth was 0.2 percent, following a 0.5 percent contraction in the fourth quarter. On an annual basis, Germany’s GDP decreased by 0.2 percent in the first quarter, which also matches the preliminary estimate.

Raphael Bostic, President of the Atlanta Fed, expects that official interest rates will remain stable at the current level for an extended period to achieve the inflation target of 2 percent, which he believes could take several years. Bostic emphasizes that the robust job growth and the savings spent during the coronavirus crisis keep demand high despite higher interest rates. He warns against shifting inflation targets under the current circumstances and confirms that the Fed is committed to the 2 percent goal.

Oil prices rose on Friday after four days of declines, with West Texas Intermediate increasing to 77.72 dollars per barrel and Brent to 82.00 dollars per barrel. However, on a weekly basis, prices fell by about 2 percent due to concerns that the Federal Reserve’s prolonged high interest rates could weaken oil demand. Analysts note a weak demand period despite the expected seasonal increase and highlight the upcoming OPEC meeting, where the response of oil-producing countries to the current price levels will be crucial.

The 6M Euribor is unchanged at 3.78% compared to previous business day. The 10Y Swap is unchanged at 2.84% 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.