Market Insights

Market Information Thursday 28 December 2023

In November, industrial profits in China saw double-digit growth due to an improvement in the manufacturing sector. Despite this growth, weak demand continues to constrain expectations for business growth, prompting calls for more macroeconomic policy support. The 29.5% profit increase follows a 2.7% rise in October, but there is still an overall decline of 4.4% for the year so far compared to the same period last year. The growth is attributed to pro-growth measures, a low statistical base from last year, and seasonal factors.

Starting January 2024, the dividend tax rate for directors and major shareholders rises to 33%, contributing to increased dividend payouts in 2023 alongside other tax changes. To pre-empt the higher tax from January 1, DGA’s are paying themselves more dividends early. These advance payouts might generate temporarily higher tax revenue for the treasury than anticipated.

In November, economic activity accelerated in the United States, according to the Federal Reserve Bank of Chicago. The Chicago Fed National Activity Index rose to 0.03 from -0.66 in October, indicating above-average growth. All four broad indicators, including industrial production and employment, showed improvements. This fosters optimism about an economy that may be able to avoid a recession.

The 6M Euribor is unchanged at 3.90% compared to previous business day. The 10Y Swap decreased with 7 basis points to 2.38% 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.

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