Market Information Thursday 4 April 2024

On Wednesday, oil prices increased amid escalating tensions in the Middle East. The May futures for a barrel of West Texas Intermediate crude oil rose by 0.3 percent to $85.43. Concerns over an escalating conflict in the Middle East heightened after Tehran announced retaliatory measures for an Israeli attack on an Iranian embassy in Syria, resulting in the death of a senior general. Earlier, Ukrainian attacks on Russian energy infrastructure had already driven up oil prices by reducing Russia’s refining capacity.

Federal Reserve Chair Jerome Powell reiterated on Wednesday that more evidence of declining inflation is needed before the central bank can consider lowering interest rates. Powell made these remarks during a forum hosted by Stanford University, emphasizing that it would not be appropriate to lower rates until inflation is sustainably heading towards the 2 percent target. Powell’s comments echoed his statement from the previous Friday, emphasizing that the Fed does not need to rush given the recent uptick in US inflation, although it’s premature to conclude it signifies more than a temporary increase.

In the first quarter of this year, wage growth in the Netherlands slowed slightly but remained robust, with wages increasing by 6.8% compared to the same period in 2023. This growth was slightly lower than the previous quarter, with hourly wages increasing by 6.9%, marking a record high not seen in forty years. Wage increases have been consistently rising since the third quarter of 2021, with the most significant growth observed in the subsidized institutions sector, including healthcare, education, and defense, where wages rose by an average of 7.2%. Meanwhile, wage growth in the government and private sectors stood at 6.6% and 6.9%, respectively.

The 6M Euribor decreased with 1 basis point to 3.84% compared to previous business day. The 10Y Swap is unchanged at 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.