Market Information Wednesday 24 January 2024

The observed impact of the disruption in the Red Sea on the European economy has so far been limited to extended delivery times, without significant effects on key economic indicators. As the global economy continues to underperform, the tensions in the Middle East have no significant influence on energy prices and consumer prices due to ample supply, decreasing demand, and companies absorbing higher costs. The ongoing disruptions in the Red Sea could lead to high inflation in the eurozone falling more slowly than expected, despite the ECB’s forecast that it will decrease from 5.4% in 2023 to 2.7% in 2024.

In December, unemployment rose in almost one third of the U.S. states (15 of 50), while it remained unchanged in the majority of the states and in the District of Columbia; Massachusetts and Rhode Island experienced the largest increase with 0.3 percentage points. The national unemployment figures remained stable at 3.7%, despite the economy adding 216,000 new jobs in December, an increase from the 173,000 in November.

Oil prices have fallen after reaching the highest level of this year, with West Texas Intermediate down 0.5 percent to $74.37 and Brent crude down 0.6 percent to $79.55 per barrel. The decline is attributed to the reopening of Libya’s largest oil field and a less unrest in the Red Sea, while at the same time freezing cold hampers oil production in North Dakota and drone attacks from Ukraine disrupt Russian oil exports.

The 6M Euribor increased with 2 basis points to 3.93% compared to previous business day. The 10Y Swap increased with 6 basis points to 2.75% 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.