Market Information Thursday 17 October 2024

Hurricane Milton caused extensive damage in central Florida, with risk modeller Karen Clark & Company estimating $36 billion in insurance payouts. The storm underscores rising risks from extreme weather, with Moody’s projecting combined losses from Milton and Hurricane Helene between $35 billion and $55 billion. Despite initial fears, insurance and reinsurance shares rallied, yet the potential for increased premiums and market exits looms amid worsening climate-change impacts.

UK inflation fell unexpectedly to 1.7% in September, marking a three-year low and prompting a drop in the British pound and increased bets on further rate cuts this year. The lower inflation, influenced by reduced airfares and petrol prices, brings the rate below the BoE’s 2% target for the first time since April 2021. These developments may boost Sir Keir Starmer’s government ahead of a challenging budget.

Mexican President Claudia Sheinbaum reassured US business leaders about the stability of the US-Mexico-Canada Agreement (USMCA) and announced $20 billion in new investments. She advocated for minimal changes to the trade deal, emphasizing that the economies of the US and Mexico complement rather than compete with each other. Despite this, her controversial domestic agenda and the political uncertainty surrounding the upcoming US election have left investors cautious.

The 6M Euribor is unchanged at 3.06% compared to previous business day. The 10Y Swap decreased with 4 basis points to 2.38% 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.