Market Information Thursday 10 October 2024

Volatility in the US Treasury market has surged as investors adjust expectations for Federal Reserve rate cuts after strong jobs data. The 10-year yield jumped, and investors anticipate two quarter-point cuts by year-end, with upcoming inflation data potentially influencing market dynamics.

Germany is bracing for its first two-year recession since the early 2000s, with the government forecasting a 0.2% contraction in 2024 following a 0.3% shrinkage this year. Factors such as high interest rates, inflation, geopolitical uncertainties, and political instability are impacting consumer demand and business investments. Despite this downturn, the government expects a recovery starting in 2025, driven by a revival in private consumption, international demand, and increased investment activity.

S&P Dow Jones revised its Select Sector indices methodology, affecting $300bn in ETFs, to manage tech stock volatility caused by giants like Apple, Microsoft, and Nvidia. The update lowers the weight cap for large companies to enhance diversification and comply with regulations. Despite this change, performance will still rely heavily on major tech stocks.

The 6M Euribor increased with 1 basis point to 3.06% compared to previous business day. The 10Y Swap increased with 1 basis point to 2.49% 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.