Market Information Wednesday 01 July 2026

The Bank of England has cautioned that the growing use of artificial intelligence in financial markets could amplify market volatility if trading systems react to signals in the same way, increasing the risk of herd behaviour. Regulators may need to strengthen oversight of AI driven investment products and consider safeguards to prevent destabilising trading activity. While AI can boost productivity and lower costs, the central bank stressed that human accountability must remain at the core of financial markets.

Elevated valuations and growing market fragility are fuelling concerns that parts of the US equity market, particularly technology and semiconductors, may be entering bubble territory. Valuation gauges remain stretched, with the Buffett Indicator at 218% and the S&P 500 price to sales ratio at 3.22 versus a long-term average of 1.84. While strong earnings and broader market participation continue to support the rally, investors remain wary of AI driven spending and high valuations.

The EU is cutting tariff free steel import quotas by 47% to 18.3mn tonnes a year, with a 50% duty applied above those limits. Brussels aims to shield domestic producers from persistent global overcapacity, which is forecast to rise to 721mn tonnes, while supporting investment and jobs. The move may slightly raise steel prices, though the impact on end products is expected to be limited.

The 6M Euribor is unchanged at 2.60% compared to previous business day. The 10Y Swap is unchanged at 2.91% 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.