Market Information Wednesday 12 June 2024

Consumer inflation in China remained stable in May with the CPI rising by 0.3%, while the pace of decline in producer prices slowed, signalling ongoing deflationary pressures and the need for more robust fiscal and monetary stimulus to revive weak domestic demand and stabilize economic recovery. Despite various measures to spur growth, economists suggest that a comprehensive policy package is essential to boost confidence and consumption effectively.

The World Bank has slightly raised its global growth forecast for 2024 to 2.6%, buoyed by the U.S. economy’s strong performance, but noted that overall economic output will remain below pre-pandemic levels through 2026. While growth is stabilizing, the report highlights significant challenges such as persistently high interest rates, mounting debt pressures in emerging markets, and geopolitical risks that could disrupt global trade and economic recovery.

U.S. small-business confidence improved in May, reaching the highest levels of the year, driven by more optimistic hiring plans despite a rise in uncertainty due to the upcoming presidential election. The National Federation of Independent Business indicated that the Small Business Optimism Index increased slightly, though it remains below the historical average, with inflation continuing to be the top concern among business owners.

The 6M Euribor increased with 1 basis point to 3.75% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.90% 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.