Market Information Thursday 14 November 2024

In October, US inflation rose to 2.6%, as expected by economists. Core inflation remained steady at 3.3% annually, indicating persistent underlying price pressures, particularly in services. The data influenced market expectations, with futures markets suggesting an increased likelihood of an interest rate reduction in December as the US economy showed signs of resilience but faced uncertainties following the presidential election.

Chancellor Rachel Reeves aims to reform the UK consumer redress system in financial services, particularly focusing on the Financial Ombudsman Service, amidst potential multibillion-pound compensation claims related to car finance mis-selling. In her Mansion House speech, she plans to assure economic stability and call for enhanced fraud prevention efforts from the technology and telecom sectors, with an emphasis on online payment fraud. Additionally, Reeves will propose pension reforms, advocating for the consolidation of local council retirement schemes into larger funds to invest in UK assets, though stopping short of mandating such investments.

US liquefied natural gas (LNG) exports could become a key factor in US-EU trade talks, with increased exports to Europe potentially lowering the continent’s dependence on Russian gas and addressing trade imbalances. The possible introduction of higher tariffs by Donald Trump on EU imports has driven interest in expanding LNG imports from the US as part of a strategic energy partnership. LNG Companies are optimistic about growth opportunities and regulatory changes under a potential second Trump administration, as the EU already sources a significant portion of its LNG from the US.

The 6M Euribor decreased with 3 basis points to 2.80% compared to previous business day. The 10Y Swap is unchanged at 2.35% 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.