Market Information Tuesday 11 March 2025

The Japanese economy grew 2.2% annualized in Q4, below the 2.8% initial estimate, as weak domestic demand weighed on growth. The Bank of Japan is expected to hold rates steady at its March meeting but may hike as early as May, driven by inflationary pressures from wage increases and food costs. Inflation remains above the BOJ’s 2% target for the 34th consecutive month, with core inflation rising to 2.5% in January.

U.S. markets tumbled Monday amid recession fears tied to tariff policy uncertainty. The Dow fell 956 points (2.2%), the S&P 500 dropped 3.3%, and the Nasdaq slid 4.8%. Goldman Sachs cut its growth forecast, while comments from President Trump and Treasury Secretary Bessent hinted at an economic “detox period” due to spending cuts. Investors shifted to safer assets, pushing up the Cboe Volatility Index and boosting defensive stocks like Procter & Gamble.

China doubled its consumer trade-in subsidies to 300 billion yuan ($41.47 billion) for 2025, targeting mid-range smartphones and home appliances. This move highlights Beijing’s focus on boosting consumption — its top economic priority for the first time in a decade — amid slowing retail sales and deflation concerns. The subsidies are funded by ultra-long government bonds, as China raises its deficit to 4%, signaling more fiscal support to sustain its 5% GDP growth target.

The 6M Euribor increased with 2 basis points to 2.41% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.70% 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.