Market Information Thursday 19 December 2024

Major fossil fuel and industrial companies, including Shell and BP, are urging the EU to mandate consumer purchases of greener products to boost investment in clean technology. They claim high costs of lower-carbon goods are pushing these products out of the market, risking industrial decline without increased demand. The EU’s existing measures, like the carbon border tax, are deemed inadequate by these companies, who seek broader mandates to support export competitiveness.

UK inflation climbed to 2.6% in November, up from 2.3% in October, driven by higher motor fuel and clothing prices. The rise reinforces expectations that the Bank of England will keep interest rates steady at 4.75% during its upcoming meeting, despite economic challenges and increased wage growth. Core and services inflation remain high, posing significant concerns for the BoE as it navigates mounting inflation pressures and economic strain following recent tax policies.

Brazil’s currency, the real, is under pressure, falling to record lows despite the central bank’s interventions and rate increases. The currency’s decline signals market frustration with fiscal policy, demanding reform as public debt and government spending rise, with Lula’s government yet to deliver credible commitments to deficit reduction. In response, the central bank may implement extraordinary measures or further rate hikes to stabilize the currency, amid Brazil’s challenging economic environment.

The 6M Euribor is unchanged at 2.66% compared to previous business day. The 10Y Swap increased with 2 basis points to 2.25% 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.