Market Information Wednesday 7 August 2024

Canada achieved a surprising trade surplus of USD 638 million in June, driven by significant increases in oil and gold exports, while imports increased modestly, primarily due to cars and light trucks. The Bank of Canada continues to lower its benchmark rate, aiming to stimulate the economy with expected growth in the latter half of 2024 led by stronger exports and a recovery in household spending.

An unexpectedly weak U.S. employment report, showing a high jobless rate, has renewed fears of a recession, overshadowing hopes for a smooth economic landing by the Federal Reserve (Fed). Despite strong service sector performance and cooling inflation, rising unemployment and increased household debt delinquencies are concerning, raising doubts about the Fed’s ability to manage a soft landing.

Saudi Arabia raised its official selling prices for September-loading crude cargoes for Asian customers by less than expected, reflecting concerns about weak demand and losing market share to other suppliers like Russia. Despite a small increase, the decision highlights the challenges faced by Saudi Arabia in maintaining its position in the Asian market amidst declining crude imports and weak refining margins in the region.

The 6M Euribor decreased with 6 basis points to 3.49% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.51% 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.