Market Information Wednesday 27 May 2026

China’s industrial profits surged 24.7% in April from a year earlier, the highest growth since November 2023, driven by rising energy prices and strong gains in electronics and mining sectors. Profits in the petroleum processing industry nearly doubled in the January-April period, while computing and electronics earnings more than doubled year on year. The recovery remains uneven however, with automobile profits still down 16.8% and furniture manufacturing profits falling 54.4%, as weak retail sales and a deepening property slump continue to weigh on broader economic momentum.

Goldman Sachs raised its S&P 500 year-end target to 8,000 from 7,600, citing strong corporate earnings growth, with earnings-per-share forecasts lifted to $340 for 2026, implying 24% year-on-year growth, and $385 for 2027. AI infrastructure beneficiaries are expected to drive around half of the index’s earnings growth this year, with Goldman noting semiconductor stocks have recently outpaced their forward earnings. The upgrade adds to a growing wave of bullish broker calls, with UBS last week also raising its outlook citing robust AI-driven earnings offsetting inflationary pressures and Iran-related supply risks.

Europe is weighing measures to curb U.S. Big Tech dominance, with a Cloud and AI Development Act due June 3 expected to restrict but not block Amazon, Microsoft and Google from EU public procurement tenders, where the three firms hold a combined 63% of the global cloud market. A separate decision on mobile satellite spectrum will reserve the bulk of frequencies for European firms, though Starlink and Amazon’s Leo service are likely to retain some access. Internal divisions however temper the ambition, with EU tech chief Virkkunen favouring clear rules over outright exclusion, and analysts warning Europe faces a €1 trillion investment gap versus the United States.

The 6M Euribor decreased with 3 basis points to 2.52% compared to previous business day. The 10Y Swap increased with 2 basis points to 3.01% 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.