Market Information Tuesday 12 November 2024

In October, China continued to face deflationary pressures as inflation figures fell short of expectations, signaling sluggish demand recovery. The Consumer Price Index (CPI) slightly increased by 0.3% year-on-year, lower than both the previous rate and expectations of 0.4%, while the Producer Price Index (PPI) declined by 2.9% year-on-year, a greater fall than anticipated. Although the Chinese government announced plans to restructure local government debt to maintain spending levels, it stopped short of introducing additional stimulus measures to address weaknesses in key sectors like housing and consumer demand.

German Chancellor Olaf Scholz expressed his willingness to schedule a parliamentary confidence vote before Christmas versus the initially planned mid-January date, assuming there is consensus among the parties. Such a shift could lead to a new German election as early as February. In market response, the German 10-year yield dropped 8 basis points to 2.37% last Friday, indicating expectations of potential political shifts. This development also led traders to increase bets on a possible ECB rate cut, projecting a 25 basis-point reduction in December.

Bitcoin has reached an unprecedented high of $87,198, driven by traders’ optimism that Donald Trump’s return to the White House may lead to favorable cryptocurrency policies. This marks a remarkable ascent, with the price more than doubling from around $37,000 just a year ago. During his campaign, Trump voiced support for the crypto community, fueling expectations of regulatory relaxation to facilitate retail investment in digital currencies, despite his earlier criticism of Bitcoin as a “scam against the dollar.”

The 6M Euribor decreased with 4 basis points to 2.82% compared to previous business day. The 10Y Swap decreased with 5 basis points to 2.30% 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.