Market Information Tuesday 1 July 2025

Canada has postponed the introduction of its Digital Services Tax (DST) at the last minute to avoid jeopardizing trade relations with the US. The tax, aimed at major US tech firms like Amazon and Google, had stalled negotiations. Canadian Prime Minister Mark Carney and US President Donald Trump will resume talks, aiming for a deal before July 21. Canada prefers a multilateral approach to digital taxation.

Germany’s inflation rate dropped to 2.0% year-on-year in June, slightly below expectations. Food prices rose by 2.0%, while energy prices fell by 3.5%. Core inflation, which excludes food and energy, also declined to 2.7%.

The European Central Bank remains committed to its 2% medium-term inflation target. However, the ECB acknowledges that factors such as geopolitical tensions, economic fragmentation, and the growing impact of AI increase uncertainty around price developments. The bank pledged to respond decisively to significant inflation deviations, following criticism of its slow response after the pandemic.

The 6M Euribor is unchanged at 2.04% compared to previous business day. The 10Y Swap increased with 2 basis points to 2.61% 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.