Market Information Wednesday 15 May 2024

Federal Reserve Chairman Jerome Powell emphasized the need for patience in monetary policy, noting that despite unexpected high inflation rates in the first quarter, the restrictive measures need time to take effect. This cautious stance comes amid continuing signs of inflation pressures, as evidenced by higher-than-expected U.S. producer prices, contrasting with the European Central Bank’s optimism about easing inflation and potential interest rate reductions.

U.S. producer prices in April rose more sharply than expected with a month-over-month increase of 0.5% following a revised drop in March, while core prices excluding volatile elements like trade, food, and energy also saw a rise. Year-on-year prices showed a 2.2% increase from a previous 1.8%, and core prices escalated to 3.1% from 2.8% in March.

OPEC has maintained its oil demand growth forecast for 2024 at 2.2 million barrels per day, unchanged from the previous month’s report. The decline in expected demand from the Middle East will not be compensated by slight increases from the US and China. Production by non-OPEC+ countries is expected to grow by 1.2 million barrels per day this year, led by increases in the U.S., Brazil, Canada, and Norway.

The 6M Euribor increased with 1 basis point to 3.80% compared to previous business day. The 10Y Swap increased with 4 basis points to 2.82% 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.