Market Information Thursday 26 October 2023

Chinese President Xi Jinping has decided to support the world’s second-largest economy by increasing the budget deficit for 2023 to about 3.8 percent of the gross domestic product (GDP) and issuing additional government bonds worth 1 trillion yuan, approximately 130 billion euros. This extensive economic stimulus plan is a response to long-standing economic challenges, including a crisis in the real estate sector, low consumer spending, and growing concerns about financial stability. The rare mid-year budget adjustment reflects the Chinese government’s concerns and underscores their focus on supporting the economy and financial markets.

The oil price rose on Wednesday, despite an increase in U.S. crude oil inventories, due to concerns about the escalating conflict in the Middle East. A December future for a barrel of West Texas Intermediate crude oil closed 2 percent higher at $85.39 on the New York Mercantile Exchange. The increase is mainly driven by global factors, such as political developments in the Middle East, and seems to be less influenced by weekly inventory data. Oil continues to find support above the level of $75 to $80 per barrel, unless significant changes in supply, demand, or political factors occur.

In September, the sale of new single-family homes in the United States increased compared to the previous month, according to data from the U.S. Department of Commerce. The number of newly sold single-family homes rose by 12.3 percent on a monthly basis to 759,000 units, exceeding economists’ expectations of 680,000. The figure for August was also slightly upwardly revised from 675,000 to 676,000. On an annual basis, the number of homes sold in the U.S. increased by 33.9 percent in September.

The 6M Euribor is unchanged at 4.10% compared to previous business day. The 10Y Swap increased with 5 basis points to 3.44% 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.