Market Information Wednesday 4 October 2023

Japan’s services sector grew at a lower pace in September, the index decline was smaller than in previous forecasts. The purchasing managers index for the services sector was 53.8 in September, versus 54.3 in August. The provisional forecast for September stated 53.3. For Japanese industry, the purchasing managers index also decreased from 49.6 in August to 48.5 in September.

After three consecutive days of declines, oil prices have risen again. On Tuesday, November futures for a barrel of West Texas Intermediate oil closed 0.5% higher on the New York Mercantile Exchange. In recent days, the oil price has fallen after it increased tp a level of above $95 per barrel for the first time in more than a year. One of the reasons for the strong increase was an extension of production restrictions by Russia and Saudi Arabia. For the time being, more price increases are expected, although prices above $100 per barrel are unlikely to be sustained for long because at these prices American shale oil producers will probably sharply increase their production.

On Tuesday, the American stock markets showed significant losses after bond yields rose further and the dollar gained considerably. The S&P500 index lost 1.6% while the NASDAQ Composite fell by more than 2%. The dollar was quoted at 1.0463 for the euro on Tuesday evening, while the rate was still 1.12 in July. The yield on 10-year US debt broke a new ceiling on Tuesday at a level of 4.682%. Interest rates have been on the rise again in recent weeks because the American economy is resilient, thereby reducing the chances that the Federal Reserve could lower interest rates again soon.

The 6M Euribor increased with 1 basis point to 4.14% compared to previous business day. The 10Y Swap increased with 5 basis points to 3.52% 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.