Market Information Thursday 4 January 2024

In December, the contraction in the U.S. manufacturing sector slightly eased, according to data from the Institute for Supply Management. The Purchasing Managers’ Index (PMI) increased from 46.7 in November to 47.4 in December, versus market expectations of 47.2. However, S&P Global data on Tuesday indicated that the U.S. manufacturing sector was still contracting in December, particularly due to a sharper decline in new orders, which fell from 49.4 to 47.9.

In December, Japan’s industrial activity contracted at the fastest pace in 10 months. The final au Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI) declined from 48.3 in November to 47.9 in December. This marked the weakest level since February and remained below the 50 threshold, indicating contraction, for the seventh consecutive month. Both production and new orders decreased at the fastest rate since February, influenced by market uncertainty both in Japan and internationally. Input prices increased at their fastest pace in three months due to higher raw material costs.

In December, China’s services sector expanded at the fastest pace in five months, driven by a significant increase in new business. The Caixin/S&P Global Services Purchasing Managers’ Index (PMI) rose to 52.9 in December, compared to 51.5 in November. Firms attributed the improvement to a rise in customer numbers and spending, fueled by robust growth in new business, reaching the fastest pace since May. Foreign demand for Chinese services also increased.

The 6M Euribor is unchanged at 3.86% compared to previous business day. The 10Y Swap decreased with 5 basis points to 2.47% 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.