Market Information Thursday 19 October 2023

The price of gold reached its highest level in four weeks on Wednesday. The conflict between Israel and Hamas plays an important role in this. The price of a troy ounce (31.1 grams) was $1938 Wednesday morning. As recently as mid-September, the price paid for a troy ounce of gold was $1930. Since Hamas’ attack on Israel, gold prices have risen about 6%.

As a result of events in the Middle East and rising interest rates, investors have a lower risk appetite. Consequently, European stock markets closed lower on Wednesday. The STOXX Europe 600, the German DAX, the French CAC and the British FTSE fell with an average of 1%. The current geopolitical situation is creating risk-averse sentiment in financial markets.  In Europe, the leading German Bund edged up to 2.92% and it was revealed that British consumer prices rose 6.7% year-on-year over the past month, compared with a 6.6% rise forecast.

The Netherlands has issued a green bond with a volume of €5 bln on Tuesday. The coupon of the bond was set at 3.25%. The Netherlands aims to reduce its ecological footprint and will use the proceeds of the bond accordingly. The target of between €4bn and €5bn was amply met. Within hours, investors from around the world had subscribed for €18.3 bln. In the end, the Dutch Treasury decided to issue maximum amount of €4.98 bln.

The 6M Euribor increased with 2 basis points to 4.12% compared to previous business day. The 10Y Swap increased with 4 basis points to 3.47% 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.