Market Information Monday 3 December 2024

Federal Reserve Governor Christopher Waller signals a potential December interest rate cut, pending steady inflation trends. Despite recent inflation data showing upward pressure, Waller remains optimistic about easing monetary policy to a more neutral setting. Upcoming employment reports will be pivotal in deciding the Fed’s next steps, aiming to balance economic growth with inflation control.

Asia-Pacific markets experienced an upswing on Tuesday, influenced by new record highs on Wall Street. Japan’s Nikkei 225 rose by 2.22%, and South Korea’s Kospi increased by 1.71% despite a higher-than-expected inflation rate in November. The Hang Seng Index in Hong Kong climbed 0.73%, while Australia’s S&P/ASX 200 gained 0.56%. Notably, key chip stocks surged, with Taiwan Semiconductor and several Japanese chip-related stocks posting significant gains, overshadowing new US export restrictions on semiconductors to China.

UK house prices rose at their fastest rate in two years, driven by strong market momentum and recent interest rate cuts. Mortgage approvals are at a high, with future stamp duty changes spurring buying activity. While affordability remains a concern, government efforts to boost construction may help address supply shortages and sustain market growth amidst economic recovery challenges.

The 6M Euribor decreased with 1 basis point to 2.70% compared to previous business day. The 10Y Swap decreased with 6 basis points to 2.10% 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.