Market Information Thursday 27 March 2025

Sweden plans to increase its defense spending to 3.5% of GDP by 2030, largely funded through borrowing, driven by Russian aggression and concerns over US foreign policy. The significant rearmament, the largest since the Cold War, has been agreed upon by the prime minister and supporting coalition parties. Sweden’s focus includes strengthening its role in Nato, with contributions such as deploying troops and fighter jets to support regional operations.

Rachel Reeves announced a £14bn package to stabilize UK finances, focusing on fiscal headroom restoration without immediate tax hikes. Key adjustments include welfare cuts, spending reductions, and planning rule changes as part of the Spring Statement. The plan precedes tax increases and features a defense spending boost amid global uncertainties.

Copper prices are set to reach $12,000 per tonne in 2025, driven by global demand and potential US tariffs. Increased US imports are reshaping market dynamics traditionally led by China, while electricity grid upgrades and new futures contracts for battery metals further boost price expectations.

The 6M Euribor decreased with 1 basis point to 2.39% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.68% 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.