Market Information Thursday 16 October 2025

France’s suspension of its pension reform lifted stock markets, with the CAC 40 up 2.5% and the euro 0.2% higher as political stability returned. The delay will cost €400 million in 2026 and €1.8 billion in 2027, risking a further 3–4 percentage point rise in debt-to-GDP over the next decade. Though Prime Minister Sebastien Lecornu targets a 4.7% deficit by 2026, analysts warn France’s debt, already 113% of GDP, may keep climbing without deeper reform.

Investors are increasingly positioning for additional interest rate cuts by central banks, fueling a rally in government bonds worldwide and pushing yields lower. The yield on the U.S. 10-year Treasury has slipped to around 4%, its lowest level since April, amid mounting evidence of an economic slowdown. Rising trade tensions and shifting expectations for Federal Reserve policy have further intensified the move into government debt.

Gold surged past $4,200 per ounce for the first time, closing at $4,195, an increase of 1.3%, as investors bet on imminent U.S. rate cuts and sought refuge amid renewed U.S.–China trade tensions. The metal has gained more than 60% this year, fueled by geopolitical strains, central bank demand, and strong ETF inflows.

The 6M Euribor increased with 1 basis point to 2.11% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.58% 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.