Market Information Thursday 3 April 2025

President Donald Trump announced to significantly increase tariffs on almost all US imports and impose higher “reciprocal” duties on key trade partners, escalating fears of a global trade war. This move, aimed at boosting domestic manufacturing and “liberating” the US economy, led to sharp declines in US stock futures with both the S&P 500 and Nasdaq futures being down 2.7 per cent and 3.2 per cent, respectively.

The UK proposed a joint European fund to purchase and stockpile military equipment, leveraging favorable market rates to ease defense investment costs. This “supranational institution” aims to improve procurement efficiency and include non-EU countries like Norway. Despite some caution from European officials on its practicality, the plan could bolster UK defense spending.

Chinese megabanks’ interest margins have hit record lows amid an economic slowdown and credit-boosting policies, with major banks posting an average margin of 1.48%. Reduced mortgage rates and increased deposits have pressured profitability, prompting Beijing to inject $72 billion into these banks. This rare direct investment by the finance ministry aims to stimulate credit expansion.

The 6M Euribor decreased with 3 basis points to 2.31% compared to previous business day. The 10Y Swap increased with 2 basis points to 2.63% 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.