Market Information Monday 28 October 2024

Donald Trump’s potential tariffs have severely impacted European stocks, particularly in export-sensitive sectors like carmakers and luxury goods. The value of a group of 28 companies at risk from these tariffs has fallen 7% since late September, reflecting concerns over Trump’s rising election odds and potential trade tensions. While some analysts warn of additional challenges from EU stagnation and reduced Chinese demand, others see the market’s pessimism as exaggerated, anticipating a possible rally benefiting European stocks if Republicans win decisively.

French luxury, defense, and construction companies are facing higher tax bills due to a new budget proposal, threatening profitability and potentially reversing Macron’s reforms. Michel Barnier’s plan aims to address deficits with temporary tax hikes, but businesses and economists remain skeptical about its impact. While some executives express concern over investment potential, experts warn more permanent tax increases might occur if budget deficits persist.

China’s industrial profits fell sharply in September, dropping 27.1% year-on-year as economic momentum stalls. Policymakers are under pressure to boost confidence amid a property slowdown and weak consumer demand. Despite recent measures to support the economy, analysts call for further fiscal stimulus to achieve the government’s GDP growth target.

The 6M Euribor decreased with 5 basis points to 2.92% compared to previous business day. The 10Y Swap increased with 1 basis point to 2.41% 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.