Market Information Monday 3 June 2024

In April US inflation was higher than the market had expected. The so-called PCE index for core inflation, a key indicator for the Federal Reserve’s monetary policy, stood at 2.8 percent year-on-year, unchanged from March, while economists had anticipated core inflation at 2.7 percent. Incomes rose by 0.3 percent in April, after a 0.5 percent increase the previous month, matching expectations.

Eurozone inflation reached 2.6 percent in May, up from 2.4 percent in April and above the expected 2.5 percent, with core inflation at 2.9 percent, up from 2.7 percent the previous month and exceeding the anticipated 2.7 percent. The euro was slightly higher at 1.0844 dollars on Friday. The European currency was 0.2 percent higher against the British pound at 0.8525. The British pound fell by 0.2 percent to 1.2715 dollars.

Chinese industry unexpectedly contracted in May, while growth in the service sector slightly declined, according to government data released on Friday. The manufacturing PMI fell from 50.4 to 49.5, indicating contraction after two months of growth. The service sector PMI slightly dropped from 51.2 to 51.1.

The 6M Euribor decreased with 1 basis point to 3.76% compared to previous business day. The 10Y Swap increased with 1 basis point to 2.89% 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.