Market Information Thursday 27 February 2025

European markets are set for a sharp drop after U.S. President Trump threatened 25% tariffs on EU imports, focusing on cars and farm products. Major indices like the FTSE 100, DAX, CAC, and FTSE MIB are expected to fall. Trump’s trade war comments escalated tensions, with the EU vowing a firm response. The euro weakened against the U.S. dollar amid rising trade war fears.

Mortgage interest rates in the U.S. dropped to a two-month low, with 30-year fixed rates falling to 6.88%. Despite this, mortgage applications fell by 1.2% compared to the previous week. Refinances dropped by 4%, though they remained 45% higher than last year. Applications for home purchases remained stable, while inventory remains low, keeping prices high.

BP has shifted focus from green energy to fossil fuels, planning to invest $10 billion yearly in oil and gas and produce 2.4 million barrels per day by 2030. This reversal follows pressure from investors and a decline in BP’s market value, which fell 25% over two years. BP also plans to reduce debt and sell $20 billion in assets to boost shareholder value.

The 6M Euribor decreased with 1 basis point to 2.41% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.36% 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.