Market Information Wednesday 2 August 2023

Fitch Ratings downgraded the credit rating of the United States (U.S.) from AAA to AA+ last night. This decision was made due to the increasing debt burden of the U.S., as well as the strained relationship between Democrats and Republicans in Washington, according to Fitch. In 2011, during the Obama administration, Standard & Poor’s (S&P) preceded Fitch by downgrading one notch from the highest credit rating. Since then, S&P has not altered the rating of the U.S. further.

On Tuesday, it was revealed by the final figures from S&P Global that the American industry shrunk significantly less in July. The purchasing managers’ index increased from 46.3 in June to 49.0 last month. An index above 50 indicates growth, while below 50 indicates contraction.

According to figures released by the U.S. government on Tuesday, construction spending in the U.S. increased in June. During that month, expenditures increased by 0.5% compared to the previous month. On a yearly basis, construction spending showed a 3.5% increase in June.

The 6M Euribor decreased with 3 basis points to 3.93% compared to previous business day. The 10Y Swap increased with 7 basis points to 3.14% 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.