Market Insights
Market Information Tuesday 17 December 2024
UK wages rose 5.2% in the three months to October, exceeding forecasts and reversing a slowdown since mid-2023. Private sector wages grew 5.4%, prompting the Bank of England to reconsider rate cuts. However, signs of a cooling labor market emerged, with job cuts and falling vacancies.
Italy’s economy stagnated in Q3, with 2024 growth forecast at just 0.5%, half the government’s target. Weakened business confidence, a manufacturing slump, and the end of construction incentives have worsened the outlook. Italy’s debt, already euro zone’s second highest, is forecast to rise, risking higher borrowing costs.
China saw a record $45.7B capital outflow in November as investor confidence waned. Weaker yuan, U.S. tariff threats, and Trump’s election win fueled the exodus. Despite Beijing’s stimulus plans, foreign investors continue to reduce holdings in Chinese bonds and stocks.
The 6M Euribor decreased with 2 basis points to 2.64% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.24% 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.