Market Information Monday 28 August 2023

On Friday, the price of a barrel of crude oil closed higher following the speech by Fed Chairman Jerome Powell at the central bank symposium in Jackson Hole, Wyoming. The October future for a barrel of West Texas Intermediate crude oil closed at USD 79.83 on the New York Mercantile Exchange, representing an increase of USD 0.78.

According to the University of Michigan’s final data, American consumers’ trust in the economy declined in August, while their expectations for inflation saw a slight increase. The consumer confidence index fell from 71.6 in July to 69.5. An earlier preliminary figure for August had suggested an index level of 71.2. The inflation expectation for the next 12 months reached 3.5%, up from 3.4% in July.

“Interest rates will increase as much as necessary to contain inflation,” stated Christine Lagarde, Chair of the European Central Bank (ECB), during a speech at the annual symposium hosted by the Kansas State central bank in Jackson Hole, USA, on Friday. “In the current climate, this means that the ECB should maintain an interest rate level that brings inflation back to the 2% target.”The 6M Euribor decreased with 2 basis points to 3.93% compared to previous business day. The 10Y Swap increased with 4 basis points to 3.16% 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.