Market Information Wednesday 1 May 2024

The Euro zone economy rebounded in the first quarter, with Germany returning to growth and expansion accelerating in other euro zone countries, while inflation steadied, reinforcing expectations for interest rate cuts by the European Central Bank. Gross domestic product in the 20-country bloc increased by 0.3% quarter-on-quarter in January-March, beating market expectations and reflecting a slow recovery in line with IMF projections.

Growth in China’s manufacturing and services sectors slowed in April, indicating a loss of momentum at the start of the second quarter for the world’s second-biggest economy. However, first quarter GDP data were solid. The slowdown highlights erratic demand and underscores challenges for policymakers.

The Bank of Japan expressed optimism regarding consumption and service price trends which progress towards its 2% inflation target. Labour shortages are driving up wages, prompting more firms to raise service prices which cause increasing long-term inflation expectations.

The 6M Euribor decreased with 2 basis points to 3.82% compared to previous business day. The 10Y Swap increased with 5 basis points to 2.86% 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.