Market Information Wednesday 5 August 2026

Asian equities rallied as easing oil prices and strong earnings lifted risk appetite, with Japan up 3.0%, South Korea rising 4.1% and a regional benchmark gaining 2.4%. Hopes of progress in reopening the Strait of Hormuz pushed Brent crude down 1.4% to $78.27 a barrel, easing inflation concerns and supporting bonds. Markets also trimmed expectations of a September US rate increase, with the probability falling to 57% from 67%.

European government bonds are attracting investors as the eurozone is increasingly viewed as a more stable market than the US, UK and Japan. Fund managers have shifted allocations towards eurozone debt, citing lower inflation, modest growth and confidence in the region’s independent central bank. Demand is strongest for core markets, although political risks continue to influence country selection within the bloc.

Japan is advancing a temporary cut in food consumption tax from 8% to 1% for two years from 2027, betting stronger consumer spending and ¥370tn in investment will support growth. Critics warn the measure could weaken public finances, with government debt projected at 204% of GDP and tax revenues reduced by an estimated ¥4.4tn. Markets are focused on rising bond yields, which have climbed to around 2.85% amid concerns over inflation and future debt issuance.

The 6M Euribor is unchanged at 2.71% compared to previous business day. The 10Y Swap decreased with 4 basis points to 3.14% 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.