Market Information Thursday 1 February 2024

The U.S. Federal Reserve decided on Wednesday evening to keep interest rates unchanged, as expected. The rate remains at 5.25 to 5.50 percent. This unanimous decision follows the latest rate hike in July 2023. The euro/dollar trades at 1.0800 this morning.

The latest employment data from ADP showed that job growth in the private sector of the United States increased in January but less than analysts had predicted. There was an increase of 107,000 jobs, following a revised growth of 158,000 in December, which was initially estimated at 164,000 jobs. Analysts had expected a growth of about 150,000 jobs for January. Wages in January increased by 5.2 percent on an annual basis, which is slightly less than the increase of 5.4 percent seen in the preceding month.

Mixed signals came from China regarding economic activity. The Purchasing Managers’ Index for the manufacturing sector showed a marginal improvement from 49.0 to 49.2, which still indicates a contraction. However, a slight increase in growth in the services sector was reported, with an increase in the Purchasing Managers’ Index from 50.4 to 50.7.

A surprising increase in crude oil inventories in the United States occurred according to the latest report on energy stocks. In the week ending on January 26, the inventory increased by 1.2 million barrels to 421.9 million barrels. This occurred while market analysts had expected a decrease of about 0.8 million barrels.

The 6M Euribor decreased with 3 basis points to 3.84% compared to previous business day. The 10Y Swap decreased with 9 basis points to 2.56% 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.