Market Information Tuesday 20 August 2024

The U.S. Federal Reserve is expected to reduce interest rates by 25 basis points at each of its remaining three meetings in 2024, according to a slim majority of economists surveyed by Reuters. This reflects one cut more than predicted last month. The revision follows a weaker-than-expected July jobs report. The Federal Reserve is anticipated to lower the federal funds rate to 4.50%-4.75% by the end of 2024. Inflation is expected to remain above 2% until at least 2026.

Oil prices fell for the fourth time in five sessions, with Brent nearing $79 per barrel and West Texas Intermediate around $76, amid geopolitical tensions in the Middle East and economic concerns. Signs of economic concerns include slower economic growth in China and reduced fuel demand due to transportation decarbonization.
Asian stocks reached a one-month high, following a Wall Street rally fueled by expectations of potential rate cut signals from the Federal Reserve later this week. The MSCI Asia-Pacific index (ex-Japan) rose 0.23%. Japan’s Nikkei hit its highest level in over two weeks, up 1.9%, while Chinese blue-chips dropped 0.7%. Hong Kong’s Hang Seng Index decreased by 0.36%.

The 6M Euribor decreased with 1 basis point to 3.37% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.50% 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.