Market Information Wednesday 23 October 2024

According to the latest World Economic Outlook from the IMF, the US economy is expected to grow by 2.8% this year and 2.2% next year. This positions the US as a driving force behind the global economy, which is projected to grow by more than 3% in 2024 and 2025. Growth in the eurozone is lower than previously expected, mainly due to Germany’s anticipated zero growth this year. Global inflation is expected to decrease to 3.5% by the end of 2025.

Nervousness about the US elections and the plans of Donald Trump and Kamala Harris are causing concerns over government finances and increasing the risk premium on government bonds. Despite a recent interest rate cut by the Federal Reserve, capital market rates have risen, peaking at 4.22% for the ten-year Treasury bonds. This continues to worry investors, adding pressure to stock indices. Economists point out that the economy and labor market are stronger than expected, reducing the need for further rate cuts and potentially delaying inflation targets.

The Indian rupee fell to a record low on Tuesday, influenced by weak regional peers and local equity outflows, but Reserve Bank of India’s intervention curtailed sharper declines. It closed slightly weaker at 84.0775 against the U.S. dollar, having touched its lowest ever level of 84.0825 earlier in the session.

The 6M Euribor decreased with 6 basis points to 2.97% compared to previous business day. The 10Y Swap increased with 2 basis points to 2.46% 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.