Market Information Tuesday 18 June 2024

Paris has lost its spot as Europe’s biggest equity market. President Emmanuel Macron’s shock announcement of a snap election wiped off 258 billion USD from the market capitalization of French firms last week. Shares of banks Societe Generale SA, BNP Paribas SA and Credit Agricole SA — all big holders of government debt — lost more than 10% each. According to Bloomberg data, the stocks in the country are now collectively worth 3.13 trillion USD, narrowly losing to the UK, worth 3.18 trillion USD. The CAC 40 Index has erased all its gains from 2024 — a sharp reversal from the record highs a month ago.

Following the European Commission’s June 12 announcement that it would impose anti-subsidy duties of up to 38.1% on imported Chinese cars from July, global food companies have been on high alert for retaliatory tariffs from China. On Monday, China’s commerce ministry announced an anti-dumping investigation into imported pork from the EU, with an annual value of USD 2.2 B. This step appears mainly aimed at Spain, the Netherlands and Denmark, in response to curbs on its electric vehicle exports. The Chinese ministry says it was prompted by a complaint by the China Animal Husbandry Association on behalf of the domestic pork industry.

Australia’s central bank kept interest rates at a 12-year high and highlighted that inflation is proving sticky, suggesting it will be some time before policymakers are ready to signal easing. The Reserve Bank held its cash rate at 4.35% for a fifth straight meeting on Tuesday and restated that it wasn’t “ruling anything in or out,” a signal that a hike isn’t out of the question. Money markets are pricing a less than 40% chance of a rate cut by December, down from 50% prior to the release.

The 6M Euribor is unchanged at 3.74% compared to previous business day. The 10Y Swap increased with 3 basis points to 2.75% 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.