Market Insights
Market Information Thursday 3 October 2024
Oil prices surged as an Iranian missile attack on Israel heightened fears of a broader Middle Eastern conflict, potentially disrupting global energy supplies. Brent crude increased by 2.6% to $75.47 per barrel, while the US benchmark rose by 2.8%, amid concerns about the stability of a region critical to global oil production. Analysts highlighted the risks to energy infrastructure and transit routes, with the potential for further escalation if conflict spreads, impacting the already strained capacity due to Opec+ production cuts.
The UK labour market is cooling, leading to a decrease in private sector wage growth, which reassures the Bank of England about easing price pressures. The median pay in the private sector fell to a two-year low, while public sector pay growth contributed to stable overall wage growth. With labour shortages dissipating and competition for jobs returning to normal, there is potential for private sector pay to normalize, though some economists expect it to remain above long-term averages.
China’s outbound investment has reached record levels, driven by its booming clean energy technology sector looking to expand internationally amid US and EU tariffs. In the first eight months of 2024, Chinese investments abroad rose by 12.5%, with a significant focus on renewable energy and transport electrification projects. However, this surge in investment has raised concerns in the US and EU over China’s dominance in the global clean energy supply chain, potentially leading to higher tariffs and trade tensions.
The 6M Euribor decreased with 2 basis points to 3.09% compared to previous business day. The 10Y Swap increased with 6 basis points to 2.33% 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.