Market Information Wednesday 31 December 2025

U.S. stock markets ended the second‑to‑last trading day of the year slightly lower, as investors reacted to newly released Federal Reserve minutes showing broad support for a rate cut but also significant disagreement among policymakers regarding economic risks. Oil prices decreased only marginally despite heightened geopolitical tensions in the Middle East involving regional powers. Market sentiment was mixed across sectors, with some technology‑related areas showing resilience while parts of the automotive sector experienced pressure due to disappointing delivery outlooks and supply‑chain difficulties.

Spain’s inflation eased to 3% in December, remaining well above the eurozone average and reinforcing expectations that the European Central Bank will keep interest rates unchanged in the near term. This marks the fourth consecutive month that Spanish inflation has been at or above this level, making it the first major eurozone economy to publish its December data. With eurozone inflation forecast to remain around 2% throughout 2025, policymakers increasingly see the recent cycle of rate cuts as concluded unless major new developments emerge.

Brazil is positioning itself as a major producer of green hydrogen, benefiting from abundant solar and wind resources and supported by cooperation with international port partners to access European markets. In the port area of Pecém, preparations are underway for large‑scale electrolyser projects expected to move into construction in 2026. Despite global setbacks in hydrogen development, particularly in Europe, Brazil remains attractive due to clear permitting frameworks, shared infrastructure, and national policies that encourage investment. Challenges such as high production costs and incomplete European transport networks remain, but Brazil aims to become a key supplier for European countries with significant industrial demand.

The 6M Euribor is unchanged at 2.12% compared to previous business day. The 10Y Swap increased with 1 basis point to 2.93% 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.