Market Information Monday 29 July 2024

Core inflation in the United States remained unchanged in June at 2.6 percent year-on-year, in line with economists’ expectations. The general price index fell to 2.5 percent, while incomes rose by 0.2 percent and spending by 0.3 percent. These figures matched predictions, except for the income increase, which was lower than expected.

The Russian central bank raised its official interest rate from 16.0 to 18.0 percent due to accelerated inflation that exceeded April’s expectations. The bank forecasts inflation of 6.5 to 7.0 percent for 2024 and anticipates a decline to 4.0 to 4.5 percent in 2025 due to tighter monetary policy. Inflation is expected to remain close to 4 percent in the years thereafter.

The euro stood around 1.086 dollars on Friday following the release of U.S. core inflation figures for June. The currency market is tense ahead of this week’s Fed rate decision, with a preference for the dollar prevailing despite doubts about the impact of a potential Trump presidency on the dollar. This week important growth and inflation data from the eurozone are published and rate decisions from both the Fed and the Bank of Japan are scheduled.

The 6M Euribor decreased with 3 basis points to 3.62% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.69% 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.