Market Information Wednesday 9 October 2024

Germany has selected Citigroup, Deutsche Bank, and UBS to lead a potential sell-off of Uniper SE, its largest power company, which could be one of the biggest share sales in recent years. The state currently owns over 99% of Uniper after a bailout, and any sale might come with a significant discount due to low liquidity. The European Commission mandates that Germany reduces its stake in Uniper to no more than 25% by the end of 2028.
Analysts at Bank of America predict negative earnings growth for the Stoxx Europe 600 in the third quarter, with earnings per share expected to decline by 1% due to a 2% revenue contraction, despite some margin improvements. Estimates have been sharply revised downward since June, indicating that companies have less than a 50% chance of beating EPS expectations. While the financial sector may contribute positively, non-essential consumer products and energy are anticipated to be the largest drags on earnings.
Argentina’s Economy Minister, Luis Caputo, stated that the government aims to sell bonds abroad by January 2026, but analysts from firms like Pimco and Barings believe significant hurdles must be cleared first, including an IMF deal, reduced inflation, and a balanced budget. Current high interest rates, near 20%, make a bond sale unlikely, as investors demand substantial yields over U.S. Treasuries to hold Argentine bonds. Key steps for President Javier Milei include securing a sizable IMF loan and building foreign reserves, essential for potentially lifting capital controls.
The 6M Euribor is unchanged at 3.05% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.48% 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.