Market Information Monday 4 November 2024

Rachel Reeves’ budget plan involving increased taxes, borrowing, and spending triggered UK bond selloffs and concerns within Labour about insufficient improvements to public services before the 2029 election. While spending rises initially, it tapers off post-2026, risking future austerity. Reeves defended her budget as necessary for economic stability, despite market reactions and internal worries about fulfilling campaign promises.

Nvidia Corp. is set to join the Dow Jones Industrial Average on Nov. 8, replacing Intel Corp., marking its rise as a major player in the AI-driven market surge. This move highlights Nvidia’s 900% growth over two years, positioning it as a key force in tech alongside companies like Apple. Intel, struggling with declining fortunes and strategic setbacks, is being removed after significant losses this year.

Exxon Mobil and Chevron reported significant increases in fossil fuel production, driven by record output from the Permian Basin and strategic acquisitions, amidst OPEC’s plan to boost global crude supply. This surge in production, mirrored by gains at Shell and BP, signals a shift back to core oil and gas strategies despite past environmental pressures. The expanded output could soften oil prices further, already down 12% in six months due to weak demand from China.

The 6M Euribor decreased with 1 basis point to 2.86% compared to previous business day. The 10Y Swap is unchanged at 2.43% 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.