Market Information Wednesday 3 April 2024

Euro zone manufacturing activity worsened in March, contracting more than in February due to declining demand, as indicated by a Purchasing Managers’ Index (PMI) that fell to 46.1, yet optimism among managers improved as evidenced by a rise in the future output index to its highest level since April of the previous year. Despite the downturn, there was a slight increase in output and a reduction in prices, potentially easing inflationary pressures, with the European Central Bank keen on achieving its inflation targets.

In March, UK house prices experienced their highest annual increase since December 2022, with a 1.6% rise from the previous year, despite a monthly decline of 0.2%. The increase in house prices, along with a decline in mortgage rates and an improvement in mortgage approvals, suggests a gradual recovery in the housing market, amidst a broader context of economic adjustments and forecasts for further price increases in 2024.

Oil prices surged to a five-month peak due to escalating Middle East tensions and a Ukrainian drone attack on a major Russian oil refinery, with Brent crude futures reaching $88.58 per barrel and West Texas Intermediate (WTI) futures at $84.97 per barrel. This rise comes amidst increased geopolitical risks, including indirect Iranian involvement in the Middle East and direct attacks on Russian oil infrastructure, fueling concerns over potential supply disruptions.

The 6M Euribor is unchanged at 3.85% compared to previous business day. The 10Y Swap increased with 10 basis points to 2.68% 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.