Market Information Tuesday 28 November 2023

Demand for solar panels has sharply declined in the Netherlands, leading to financial challenges for installers. Since 2022, over 25 companies in the solar panel industry have gone bankrupt, particularly impacting newcomers with limited reserves and marketing experience. Negative media coverage and uncertainty about the continuation of the solar panel reimbursement scheme have caused the decline. Despite the favourable payback period, consumers remain cautious. The downturn contrasts starkly with the busy year of 2022.

In October, the United States saw a decrease in the sale of new single-family homes compared to the previous month, according to data from the U.S. Department of Commerce. The number of sold new single-family homes declined by 5.6% on a monthly basis to 679,000 units, falling below economists’ expectations of 725,000 new homes. The September figure was also revised downward from 759,000 to 719,000. However, on an annual basis, the number of homes sold in the U.S. increased by 17.7% in October.

The German government has temporarily averted a further escalation of the debt crisis by reaching an agreement on a supplementary budget. The “Schuldenbremse,” the constitutional debt ceiling, is being suspended for 2023. This marks the fourth deactivation of the debt rule in four years. The Scholz government justifies the decision by citing the ongoing impacts of the energy crisis that emerged after Russia started the war against Ukraine in February 2022. The measure was necessary following a ruling by the German Constitutional Court, which deemed the transfer of €60 billion in unused COVID-19 aid to a climate transition fund unconstitutional.

The 6M Euribor increased with 1 basis point to 4.07% compared to previous business day. The 10Y Swap decreased with 8 basis points to 3.04% 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.