Market Information Tuesday 19 December 2023

Low economic growth

The Dutch central bank (DNB) has lowered its economic forecast, predicting minimal growth for the Netherlands in the coming years due to global economic challenges, including a slowdown in world trade. GDP is expected to rise by only 0.3% next year. DNB attributes the sluggish performance to a weakened world economy, citing factors such as increased interest rates affecting spending and investments, particularly in China.

Nippon Steel Acquisition of US Steel

The Japanese steel giant Nippon Steel made a bid of $55 per share for US Steel on Monday, a significant premium of approximately 40 percent over Friday’s closing price and a premium of more than 55 percent compared to the initial offer from the American Cleveland Cliffs. The transaction has been approved by both boards of directors.

Japanese Interest Rate remains Negative

The Bank of Japan kept the main interest rate unchanged during the monetary meeting on Tuesday, as indicated by the decision of the Japanese central bank. This means that the short-term interest rate remains at minus 0.1 percent. The decision was unanimous.

The 6M Euribor decreased with 3 basis points to 3.91% compared to previous business day. The 10Y Swap increased with 6 basis points to 2.55% 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.