Market Information Tuesday 26 September 2023

In September, the Ifo Business Climate Index in Germany declined slightly. Although companies are being somewhat less negative about future expectations, the economic sentiment in Germany remains weak. The composite index for the German business climate decreased from 85.8 in August to 85.7 in September, slightly exceeding economists’ expectations of 85.0.

The US dollar remains strong following hints from the Federal Reserve that interest rates may rise further later this year and stay higher than previously expected in the coming year. While the Fed has indicated an extended period of higher interest rates, it is expected that the Fed may refrain from a rate hike at the next meeting due to potential economic downturns in the US.

Global steel production increased again in August, rising by 2.2% compared to August 2022. This was driven by the world’s largest steel producer China, with a 2.6% increase to 86.4 million tons. In the US, Japan, and Germany, production decreased ranging from nearly 2% to over 4% percent. Across the entire European Union, the decline in steel production was nearly 10%. The production increase follows a previous rise of 6% in July.

The 6M Euribor increased with 1 basis point to 4.08% compared to previous business day. The 10Y Swap increased with 6 basis points to 3.34% 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.