Market Information Thursday 20 November 2025

US trade slumped in August as imports dropped 5.1 percent to 340.4 billion dollars after tariffs pushed the effective levy rate above 18 percent, the highest since 1934. Exports also eased, but the trade deficit narrowed nearly 24 percent to 59.6 billion dollars as businesses cut purchases of industrial supplies and gold. The adjustment followed earlier stockpiling, leaving the year to date deficit still up 25 percent.

British inflation eased to 3.6 percent in October from 3.8 percent, softening sterling and lowering gilt yields as markets increased bets on a Bank of England rate cut in December. Services inflation slipped to 4.5 percent, its lowest since late 2024, though food and drink prices accelerated to 4.9 percent, underscoring lingering domestic pressures. With growth weakening and fiscal tightening expected in next week’s budget, analysts see conditions aligning for monetary easing despite continued wage driven persistence.

US mortgage applications fell 5.2 percent to a four-week low as the average 30-year mortgage rate inched up to 6.37 percent, signalling renewed strain in the housing market. Refinancing slid 7.3 percent and purchase applications dropped 2.3 percent, underscoring weak affordability despite builder incentives. Sentiment indicators from homebuilders also softened, pointing to subdued sales expectations even as prices are trimmed.

The 6M Euribor increased with 2 basis points to 2.16% compared to previous business day. The 10Y Swap increased with 1 basis point to 2.77% 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.