Market Information Tuesday 23 July 2024

The central bank of China unexpectedly lowered the seven-day repo rate from 1.80 to 1.70 percent to support economic growth. This move comes after disappointing economic figures and a slowdown in growth in the second quarter. Analysts believe the rate cut will not be enough to boost business confidence and expect more fiscal stimulus at the upcoming Politburo meeting.

In June, prices of existing homes in the Netherlands increased by 9.7 percent year-on-year, the largest rise in almost two years. Compared to May 2024, prices in June rose by 1.3 percent. After peaking in July 2022 and then declining, home prices have been rising again since June 2023. In June 2024, prices were on average 3.2 percent higher than at the previous peak in July 2022.

Nearly four out of ten central banks plan to hold more gold reserves in the coming years as a hedge against inflation, geopolitical unrest, and the rising U.S. debt, according to an Invesco survey. No central bank intends to reduce its gold holdings, and many prefer to keep their reserves physically and in their own country. This is due to concerns about the safety of foreign dollar reserves and the potential impact of sanctions, as seen after Russia’s invasion of Ukraine. Besides gold, central banks are looking to diversify their reserves and anticipate a reduced role for the dollar, with Asian countries increasingly holding regional currencies. Sovereign wealth funds are focusing more on stocks, hedge funds, and infrastructure, especially in emerging markets, and less on real estate and private equity, while still considering climate risks.

The 6M Euribor increased with 1 basis point to 3.63% compared to previous business day. The 10Y Swap increased with 2 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.