Market Information Wednesday 6 November 2024

In September, the U.S. trade balance deficit further increased as imports exceeded exports, according to yesterday’s figures from the U.S. Department of Commerce. The deficit rose from $70.8 billion to $84.4 billion, slightly higher than the expected $84.0 billion. Exports fell by 1.2 percent to $267.9 billion, while imports increased by 3.0 percent to $352.3 billion.

The southeast of Spain is preparing for an extended recovery period following the recent severe weather, with local authorities estimating the total damage at €31.4 billion. Spanish Prime Minister Pedro Sánchez announced at a recent press conference that emergency aid packages will be made available for the affected population. The government is providing financial support to business owners, with amounts ranging from €5000 for freelancers to a maximum of €150,000 for small and medium-sized enterprises, while tax obligations have been deferred until 2025. Additionally, residents who have lost their homes and belongings will receive emergency funds of up to €70,000.

Analysts expect the Federal Reserve to lower the interest rate by 25 basis points this coming Thursday. This follows the larger reduction of 50 basis points in September. The current federal funds rate is between 4.75 and 5.00 percent. The rate decision will be announced on Thursday at 8:00 PM CET, followed by an explanation from Fed Chair Powell at 8:30 PM CET.

The 6M Euribor increased with 1 basis point to 2.92% compared to previous business day. The 10Y Swap increased with 4 basis points to 2.47% 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.