Market Information Thursday 7 November 2024

Following the election results, US stocks reached new record highs and the dollar experienced its largest surge in two years as investors anticipated favorable changes from the proposed trade tariffs and tax policies. The strengthened dollar affected global markets, with European stocks declining and bond markets reacting as investors predicted a tariff-driven economic boost in the US.

Chancellor Scholz’s government in Germany faces a crisis after firing Finance Minister Christian Lindner, prompting the FDP to withdraw its ministers from the coalition. Scholz plans to submit a question of confidence to the Bundestag, with potential early elections in March if support is insufficient. The coalition, comprised of SPD, Greens, and FDP, has struggled with internal tensions and economic disagreements, leading to this political rupture.

Asia is preparing for significant economic shifts as Donald Trump returns to the US presidency, threatening steep tariffs on China and questioning security commitments in the region. Trump’s proposed tariffs of over 60% on Chinese imports could drastically impact China’s economy and global supply chains, similar to the trade war during his first term. Asian currencies have already reacted to the anticipated changes, and leaders across the region are bracing for potential trade disruptions and renegotiations of defense agreements.

The 6M Euribor is unchanged at 2.92% compared to previous business day. The 10Y Swap decreased with 6 basis points to 2.41% 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.