Market Information Tuesday 21 May 2024

Producer prices in Germany declined more sharply in April than the previous month, according to figures from Destatis, the German statistics office. On a yearly basis, prices fell by 3.3 percent, compared to a 2.9 percent decline in March. Energy prices dropped by 8.2 percent year-over-year. On a monthly basis, producer prices rose by 0.2 percent in April, while energy prices fell by 0.1 percent.

After a positive 18-month period, U.S. macroeconomic data is showing signs of weakening. This is evidenced by the decline in purchasing managers’ indexes in April, the cooling U.S. labor market, and weakened consumer confidence and housing market. This weakening has contributed to the U.S. economic indices turning significantly negative for the first time since early last year.

It appears that currency markets have entered calmer waters, allowing the US dollar to stabilize. This is evident from the period between last week’s U.S. inflation data release and the upcoming PCE inflation report at the end of next week. According to market analysts, May has so far brought a weak US dollar, strong risk sentiment, and rising expectations for easing by the Federal Reserve. The 6M Euribor decreased with 1 basis point to 3.79% compared to previous business day. The 10Y Swap increased with 1 basis point to 2.80% 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.