Active strategies are gaining traction in ETFs, with around 80% of new launches and 36% of $866bn inflows directed to active funds.
Higher demand is pushing up costs, with average fees around 0.44% versus 0.14% for passive funds and new launches averaging 0.71%.
Elevated fees can materially erode long term returns, with investor outcomes significantly lower as costs rise.
Oil prices fell as rising shipments through the Strait of Hormuz eased supply concerns, despite ongoing geopolitical tensions. U.S. crude dropped 3.4% to $88.20.
Prices remain supported after a 30% surge since February, though inventories are cushioning the current disruption.
The Federal Reserve is expected to hold rates at 3.50% to 3.75% through 2026, with nearly 70% of economists backing a pause. Inflation near 4.2% and persistent at almost double the target is eroding expectations for rate cuts, with markets even pricing potential hikes. Steady growth around 2% and unemployment near 4.3% reinforce a cautious policy stance amid ongoing supply shocks.
The 6M Euribor increased with 1 basis point to 2.59% compared to previous business day. The 10Y Swap decreased with 2 basis points to 3.09% 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.
The European Central Bank (ECB) is widely expected to raise its key interest rate from 2% to 2.25% on Thursday, which would mark its first increase since September 2023. Eurozone inflation climbed to 3.2% in May, driven by persistently high energy prices following the closure of the Strait of Hormuz, which is now feeding through into services inflation and inflation expectations. Markets are pricing in nearly three rate hikes this year, though economists at ING consider a single “hawkish hike” in June their base scenario.
China’s exports rose 19.4% year-on-year in May, beating forecasts of 15%, driven largely by surging artificial intelligence (AI) related goods and green technology products such as electric vehicles, batteries, and solar panels. Shipments to the U.S. jumped 35.4%, the highest growth since March 2021. Imports expanded 27.4%, lifting the trade surplus to $105.4 billion. Economists warn that domestic demand remains weak, and that the export boom may be short-lived once overseas stockpiling fades.
On June 14, Switzerland votes on a referendum to cap its population at 10 million, backed by the Swiss People’s Party (SVP). The latest poll shows 47% in favour and 52% against. Businesses warn the measure could restrict access to skilled labour and jeopardise Switzerland’s bilateral agreements with the European Union (EU), its largest export market. Economists estimate that abandoning those accords could reduce Swiss economic growth by 7.1% between 2028 and 2045, equivalent to 685 billion Swiss francs.
The 6M Euribor decreased with 1 basis point to 2.58% compared to previous business day. The 10Y Swap increased with 3 basis points to 3.11% 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.
Oil tanker owners warn of a potential market downturn after record first-quarter profits of $36bn driven by the closure of the Strait of Hormuz during the Iran conflict. Elevated shipping rates, which peaked at $386,685 per day for large vessels, are already easing in anticipation of a reopening. Increased orders for new ships risk oversupply, raising concerns about a boom-and-bust cycle, although some argue previous underinvestment and shifting trade routes may support rates.
The Bank of Canada is expected to hold its policy rate at 2.25% on June 10 and throughout 2026, despite inflation rising to 2.8% in April due to higher energy prices. Inflation remains within the 1–3% target, while weaker core inflation signals subdued demand. Following 275 basis points of rate cuts, the central bank prioritises recovery as the economy faces recession risks, trade uncertainty and oil-driven inflation pressures.
The European Central Bank argues that issuing joint European debt is increasingly necessary to strengthen the bloc’s financial stability and sovereignty. A common safe asset could reduce borrowing costs, deepen capital markets and mobilise household savings for investments in areas such as energy, defence and technology. Persistent political resistance remains, particularly over fiscal risk sharing, but current economic and geopolitical conditions support renewed momentum towards integrated European financing mechanisms.
The 6M Euribor increased with 4 basis points to 2.59% compared to previous business day. The 10Y Swap increased with 2 basis points to 3.08% 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.
Currency markets reflect geopolitical sensitivity and diverging monetary policy paths, with the dollar easing to an index level of 99.2 after hitting a two-month high, while the euro rose to $1.1636 on expectations of an ECB rate increase to 2.25% next week. The Japanese yen remains under pressure near 160 per dollar, a key intervention threshold, as rising energy-driven inflation supports expectations of further rate hikes in Japan. Broader macro conditions point to persistent inflation risk linked to Middle East tensions, alongside relative resilience in the US economy supporting underlying dollar strength.
US equity markets show rotation dynamics as the Dow rose 1.7% to a record 51,549 while the S&P 500 edged up 0.26% to 7,573, even as the Nasdaq fell 0.19% due to a 2.8% drop in semiconductor stocks. The shift away from technology follows a strong rally, with investors reallocating into healthcare and financials, while concerns persist around private credit liquidity and geopolitical risks affecting inflation via oil prices.
Private credit markets in the US are facing renewed stress as redemption requests rose to about $7.1bn in Q1 across major funds, with Q2 data indicating continued pressure from valuation concerns and limited transparency. Withdrawal requests have exceeded typical quarterly repurchase limits, often around 5%, forcing funds to cap redemptions and highlighting liquidity mismatches in semi-liquid structures. The trend points to weakening investor confidence in the asset class, particularly amid exposure concerns and slower fundraising, raising broader questions about stability in the growing private credit segment.
The 6M Euribor increased with 1 basis point to 2.55% compared to previous business day. The 10Y Swap decreased with 1 basis point to 3.06% 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.
Gold has overtaken US government bonds as the largest global reserve asset, according to the European Central Bank. By end-2025, gold represented 27 percent of central bank reserves, up from 20 percent, while US Treasuries fell to 22 percent. The shift reflects both strong price gains and diversification away from the US dollar amid geopolitical tensions and sanctions risks. Central banks now hold almost 36,000 tonnes of gold.
US convertible bond issuance is on track for a record year in 2026 as companies linked to the artificial intelligence boom exploit strong investor demand and volatile share prices. Issuance has reached $57bn so far, driven by firms able to raise low cost or zero coupon debt by offering conversion into equity at higher future prices. Investors value the equity upside, while issuers benefit from cheaper financing and limited near term dilution.
Specialist trading firms such as Jane Street and Citadel Securities generated a combined $114bn in revenues last year, a 45 percent increase from 2024, highlighting their growing challenge to traditional Wall Street banks. Growth was driven mainly by proprietary trading and private investments, while market making also expanded. Increased market volatility linked to geopolitical tensions and the artificial intelligence boom supported results, though analysts question whether such returns are sustainable.
The 6M Euribor increased with 2 basis points to 2.54% compared to previous business day. The 10Y Swap increased with 5 basis points to 3.07% 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.
Goldman Sachs CEO said markets are in greed mode with ample liquidity as big AI groups seek billions. He noted a planned $80bn equity raise was well received and argued markets can absorb an unprecedented slate of listings, with some poised to debut at trillion dollar valuations. Robust equity and debt conditions are prompting issuers to raise funds now, with AI gains potentially recycling into investment, and he sees the cycle as early.
The euro is starting to act as a safe haven, with risk episodes in 2025 to 2026 drawing inflows, partly at the expense of the dollar. Reserve data show a shift as foreign central bank Treasuries at the New York Fed fell $82bn in March to $2.7tn, gold’s share rose to 27% from 20%, Treasuries slipped to 22% from 25%, and the euro stayed at 15%. The central bank urges deeper EU capital markets to bolster the global role of the euro in capital markets.
Oil rose about 1 per cent as Brent settled at $96 and WTI at $93.76, with traders eyeing Iran talks. The Strait of Hormuz remains largely shut, curbing about one fifth of global oil and LNG flows. Inventories are tightening, with an estimated 4.0 million barrel US draw last week set to mark a sixth straight week as officials warn stocks could hit critical levels into summer.
The 6M Euribor decreased with 3 basis points to 2.52% compared to previous business day. The 10Y Swap decreased with 2 basis points to 3.02% 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.
The Office of the United States Trade Representative (USTR) has proposed 25% tariffs on Brazilian goods under Section 301, citing unreasonable practices that burden U.S. commerce, including anti-corruption enforcement, intellectual property protection, and illegal deforestation. USTR Jamieson Greer noted that while constructive meetings have taken place between both presidents, substantial differences remain. A hearing is scheduled for July 6. Separately, the White House announced tariff adjustments on steel, aluminium, and copper imports, reducing levies on agricultural equipment from 25% to 15%.
Australia’s Fair Work Commission has announced a 4.75% minimum wage increase for 2.8 million lower-paid workers, effective July 1, raising the weekly minimum to A$1,004.90 (A$26.44 per hour). The rise exceeds last year’s 3.5% increase and may add to existing inflationary pressures, with consumer price inflation at 4.1% in the first quarter and expected to peak at 4.8%. Analysts at Citi believe the decision reinforces expectations that the Reserve Bank of Australia (RBA) will raise interest rates a fourth time this year, to 4.6% in August.
At the annual Choose France summit, companies pledged a record €93 billion in foreign investment across 71 projects, expected to create more than 15,600 jobs. The largest commitment comes from Japanese tech investor SoftBank, which will invest €45 billion to build three data centres with a combined capacity of 3.1 gigawatts in the Hauts-de-France region by 2031, potentially rising to €75 billion. President Macron is positioning France as a European artificial intelligence (AI) hub, leveraging the country’s fleet of 57 nuclear reactors to power data centres.
The 6M Euribor increased with 5 basis points to 2.55% compared to previous business day. The 10Y Swap increased with 7 basis points to 3.04% 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.
US equities continue to rally in 2026, with the S&P 500 up about 11 per cent in 2026 and the Nasdaq rising 16 per cent, driven largely by artificial intelligence-related stocks. Semiconductor shares have surged 81 per cent, while several AI-linked companies gained up to 600 per cent. Despite valuations above historical averages, major banks and strategists expect further gains, citing strong earnings growth and supportive economic conditions, although some warn of potential excess and corrections in certain segments.
Finance ministers from the six largest European Union economies agreed to support more centralised capital markets supervision, strengthening efforts to integrate fragmented markets and mobilise savings for investment. Oversight of key market infrastructure would gradually shift to the European Securities and Markets Authority. Backing from countries representing around 70 per cent of the EU population increases the likelihood of adoption, although opposition remains. Ministers emphasised accountability, efficiency and cost control in the proposed supervisory framework.
The US Securities and Exchange Commission has proposed rescinding its 2024 rule requiring most public companies to disclose climate-related risks and emissions, calling it an overreach of authority. The rule never took effect due to legal challenges and remains on hold. A 60-day consultation period has been opened. Regulators aim to reduce disclosure burdens, while critics warn investors will face reduced transparency. Some firms may still disclose climate risks if deemed financially material or under other jurisdictions.
The 6M Euribor increased with 1 basis point to 2.50% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.97% 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.
The first inflation report under new Federal Reserve chair Kevin Warsh shows consumer price pressures remain elevated. The personal consumption expenditures price index rose 3.8 percent year on year in April, the highest level in nearly three years, driven mainly by higher energy costs linked to the Iran war. Income growth lagged inflation, savings fell sharply and rate cut expectations have weakened, with markets increasingly pricing the risk of a rate hike later in the year.
The Russian rouble has climbed to a more than three year high, driven by strong energy export revenues, high interest rates and limited imports due to sanctions and weak domestic demand. While higher oil earnings support revenues, the stronger currency is undermining competitiveness in key non-energy exports such as grain, metals and fertilisers. Officials warn the rouble’s strength is becoming a growing risk to the federal budget as the war continues.
Seven major central banks and 40 financial institutions have successfully tested Project Agorá, a blockchain-based prototype for near-instant cross-border payments. Led by the Bank for International Settlements and the International Institute of Finance, the system tokenises commercial bank deposits and settles transactions almost instantly using tokenised central bank reserves. Tests were synthetic but maintained privacy and anti-money laundering controls. Participants plan to progress to real cash transfers, without changing existing legal frameworks.
The 6M Euribor increased with 4 basis points to 2.49% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.99% 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.
Eurozone governments are increasing issuance of non-euro debt to broaden their investor base as bond supply rises. Issuers have raised $4.6bn so far this year in currencies such as the US dollar and Swiss franc, compared with $2.4bn a year earlier. The European Central Bank’s withdrawal from bond buying has reduced domestic demand for euro-denominated bonds, prompting smaller sovereigns to seek flexibility, diversification and, in some cases, cost advantages through fully hedged foreign-currency borrowing.
The European Central Bank has warned that an artificial intelligence investment boom increasingly financed by private credit could pose risks to the euro area’s financial system. If expected AI cash flows disappoint, losses could spread beyond private credit to leveraged loans, equities and high-yield bonds. Insurers and pension funds would be most affected, while banks’ direct losses would remain limited due to senior loan positions and smaller exposures.
Hong Kong has overtaken Switzerland as the world’s largest cross-border wealth hub, driven by strong inflows from mainland China. Wealth managers in the territory held $2.9tn in international assets in 2025, with about 60 per cent originating from China. The shift reflects rapid Asian wealth growth and rising demand for jurisdictional diversification amid geopolitical risks. Switzerland remains important, but is more exposed to slower-growing European wealth
The 6M Euribor decreased with 7 basis points to 2.45% compared to previous business day. The 10Y Swap increased with 1 basis point to 3.02% 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.
