Global stock markets reached a new high on Thursday, driven by the Federal Reserve’s interest rate cut, which strengthened the U.S. dollar against major currencies. Wall Street saw all its major indices rise, with the Nasdaq gaining over 1%. Intel shares soared by more than 25% following Nvidia’s $5 billion investment. The Dow Jones, S&P 500, and Nasdaq Composite all reported gains. The Fed cut rates by 25 basis points and signals further reductions this year.

The Bank of England has maintained its key interest rate at 4.00%, following a 25 basis point cut in August. The rate decision was made with a vote of 7 to 2, with two members favouring a further cut to 3.75%. Despite a significant desinflation over the past two and a half years, the bank remains focused on reducing persistent inflationary pressures to achieve its 2% target. August inflation was reported at 3.8%, with a slight increase anticipated in September before aligning with the target. Analysts predict another rate cut may occur in November to stimulate growth. The Bank of England also plans to reduce its balance sheet by 70 billion pounds over the next year.

Stablecoins, cryptocurrencies linked to the US dollar, have the potential to improve the financial system. However, European regulators are concerned due to Donald Trump’s strong push for digital dollars, which could trigger a banking crisis if a stablecoin crashes. The Genius Act signed by Trump, aimed at promoting stablecoins, is less stringent than EU regulations. USDC’s warning about insufficient reserves in extreme scenarios reflects ongoing risks. Christine Lagarde of the ECB has called for stricter regulations, highlighting the risks of stablecoins on financial stability.

The 6M Euribor decreased with 1 basis point to 2.08% compared to previous business day. The 10Y Swap increased with 4 basis points to 2.67% 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 Federal Reserve cut its benchmark rate by 25 basis points to a range of 4.00 to 4.25 per cent, with officials signalling two more reductions this year amid signs of a weakening labour market. The decision, backed by an 11-to-1 vote, came as unemployment rose to 4.3 per cent, the highest since 2021, and job creation slowed sharply with nearly one million fewer positions than previously reported. The Dow gained over 300 points while Treasury yields slipped.

Food price inflation in the UK accelerated to 5.1% in August, the fastest pace in 19 months, driven by surging costs of beef, butter, milk, and chocolate. Overall consumer price growth held at 3.8%, well above the Bank of England’s 2% target, as wage pressures and domestic tax policies fed through to higher prices. Analysts note that UK inflation now outpaces France and Germany, with rising food bills eroding real wage gains and straining household budgets.

The European Commission has proposed targeted tariffs on €5.8 billion of Israeli imports and sanctions on two senior Israeli ministers over human rights abuses in Gaza, marking a major shift in EU policy. The measures, affecting 37 percent of Israel’s exports to the EU and adding €220 million in costs, aim to pressure the Israeli government without harming society at large. The proposals face likely opposition from key EU countries, while Brussels also plans to suspend €14 million in direct support for Israeli projects.

The 6M Euribor decreased with 1 basis point to 2.09% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.63% 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.

In July, industrial output in the eurozone rose again, according to figures released yesterday by Eurostat. Compared to June, production increased by 0.3 percent, slightly below the expected 0.4 percent rise. On an annual basis, growth reached 1.8 percent.

Economic confidence in Germany rose unexpectedly in September, the ZEW research institute reported yesterday. The expectations index climbed to 37.3 points, whereas analysts had anticipated a sharp decline. At the same time, the assessment of the current situation fell further to -76.4.

In August, U.S. import prices unexpectedly rose by 0.3 percent, whereas a 0.2 percent decline had been anticipated. On an annual basis, the figure remained unchanged, while export prices increased both month-over-month and year-over-year, by 0.3 percent and 3.4 percent, respectively.

The 6M Euribor decreased with 1 basis point to 2.10% compared to previous business day. The 10Y Swap is unchanged at 2.65% 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 is requiring smaller banks to set aside more provisions for long-standing bad loans, some dating back over six years. The new rules will be phased in through 2028 and apply only to loans issued before April 2019.

Donald Trump proposed that U.S. public companies should publish results only semi-annually and annually instead of quarterly. He argued this would save costs and allow managers to better run their businesses. He also urged the Federal Reserve to cut interest rates immediately and more sharply, claiming it would boost the housing market.

The euro lost around 0.2% against the dollar, pound, and yen on Monday after Fitch downgraded France’s credit rating of AA- to A+ due to rising debt. Investors are now focused on key central bank policy meetings, with the Federal Reserve’s decision in the spotlight. Despite fiscal concerns, the euro remains supported by expectations of Fed easing and limited scope for further ECB rate cuts.

The 6M Euribor decreased with 1 basis point to 2.11% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.65% 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.

Italy will keep its GDP growth forecasts at 0.6 per cent this year and 0.8 per cent in 2026, despite weaker trade flows and uncertainty over US tariffs. The economy shrank by 0.1 per cent in the second quarter but July industrial output rose 0.4 per cent, offering some relief for manufacturing. The government expects the deficit below the EU’s 3 per cent ceiling next year, paving the way to end the bloc’s excessive deficit procedure.

The Federal Reserve is set to cut rates by 0.25 percentage points next Wednesday, its first reduction since December. Markets have fully priced in the move as inflation rose to 2.9 per cent in August with core inflation steady at 3.1 per cent. The decision comes amid concerns over tariffs, slowing jobs growth and political pressure on the central bank.

France’s credit rating was cut to A+ by Fitch, reflecting investor unease over the euro area’s largest budget deficit at 5.4 percent of GDP. The move underscores political turmoil as a new prime minister struggles to pass a 2026 budget through a fractured parliament. Borrowing costs have risen close to Italian levels, intensifying pressure on the government to restore fiscal credibility.

The 6M Euribor increased with 1 basis point to 2.12% compared to previous business day. The 10Y Swap increased with 7 basis points to 2.67% 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.

Christine Lagarde, the president of the European Central Bank (ECB), emphasized that the bank remains well-positioned and flexible, deciding on interest rates based on each meeting. Following a unanimous decision to keep interest rate unchanged, Lagarde highlighted that risks to economic growth are balanced, and inflation aligns with the ECB’s 2% target. Although global trade uncertainties have decreased, she acknowledged that tensions could still affect market stability. Despite desinflation ending, inflation prospects remain uncertain, with the strong euro potentially lowering inflation. The ECB forecasts inflation at 1.9% for 2027, slightly below its target.

In August, U.S. consumer prices rose more than expected, marking the highest annual inflation growth in seven months. Despite this increase, the Federal Reserve is anticipated to lower interest rates next week due to a weakening labour market. The Consumer Price Index (CPI) increased by 0.4% in August, with a year-over-year rise of 2.9%, the largest since January. Analysts noted the unexpected rise in prices for airfare and hotels contributing to the CPI figures.

The U.S. economy is showing signs of strain, with domestic demand slowing and job growth decreasing, according to the International Monetary Fund (IMF). Spokesperson Julie Kozack highlighted that while inflation is on track to meet the Federal Reserve’s 2% target, tariffs imposed by the Trump administration pose risks that could elevate inflation. Kozack suggested the Federal Reserve has room to lower interest rates, but should proceed cautiously. Recent revisions revealed 911,000 fewer jobs than previously estimated, hinting at job growth stalling prior to tariff imposition.

The 6M Euribor is unchanged at 2.11% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.60% 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 producer prices slipped 0.1 per cent in August, reversing a 0.7 per cent rise in July. Core prices also edged down 0.1 per cent. Year-on-year, producer prices increased 2.6 per cent and core prices 2.8 per cent, both coming in below expectations. The weaker figures add weight to bets on a Federal Reserve rate cut as evidence of cooling momentum in the economy accumulates.

In China, consumer prices declined 0.4 per cent last month and producer prices fell 2.9 per cent, pointing to stubborn deflationary pressure. Core inflation climbed 0.9 per cent, the strongest since February, fuelled by gains in household appliances and clothing. Soft export growth of 4.4 per cent and further falls in food prices underline the strain on domestic demand as calls grow for more forceful fiscal measures.

Brazil registered a 0.11 per cent fall in consumer prices in August, bringing annual inflation down to 5.13 per cent. After two months of slower price growth, the central bank is expected to hold the policy rate at 15 per cent. Political frictions and uncertainty over fiscal spending cloud the outlook as growth begins to lose pace.

The 6M Euribor is unchanged at 2.11% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.61% 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.

Good morning,

According to figures released yesterday by Statistics Netherlands, inflation stood at 2.8 percent in August, slightly below July’s 2.9 percent. The decline was mainly driven by declining prices for furniture and airline tickets. At the same time, clothing and fuel became more expensive.

President Emmanuel Macron has appointed Sébastien Lecornu as France’s new prime minister, after François Bayrou lost a confidence vote he had called himself over a multibillion-euro austerity plan aimed at reducing the budget deficit. Lecornu has been tasked with negotiating with parliamentary groups on the budget and other key agreements.

A revision by the U.S. Department of Labor shows that employment grew by nearly one million fewer jobs between April 2023 and March 2024 than previously reported, suggesting that job growth was already stalling before President Donald Trump imposed aggressive import tariffs. Investors are anticipating interest rate cuts by the Federal Reserve, which is set to announce its decision next week.

The 6M Euribor increased with 1 basis point to 2.11% compared to previous business day. The 10Y Swap increased with 1 basis point to 2.62% 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 hit a record above $3,600 per ounce, up 37% this year, driven by US inflation fears, debt concerns, and expectations of Fed rate cuts. A weaker dollar, political uncertainty, and central bank buying are adding to demand, with analysts seeing further gains as investors move away from US Treasuries.

Greece will spend €1.6 billion on tax cuts and housing measures to counter population decline, as Prime Minister Mitsotakis announced. Income taxes will drop by two percentage points, with larger reductions for families with three or more children, alongside new apartments and rent subsidies. With fertility at just 1.4 children per woman, which is the lowest in Europe, the government sees demographic decline as a “national threat”.

China’s exports rose just 4.4% in August, the weakest growth in six months and below expectations, as ongoing trade tensions with the U.S. weighed on momentum. Imports also slowed, while shipments to the U.S. plunged 33%, though stronger demand from Southeast Asia and the EU provided some offset. Analysts caution that with tariff truces fading and new U.S. measures taking effect, China’s trade outlook faces growing pressure.

The 6M Euribor is unchanged at 2.10% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.61% 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.

Japan’s second-quarter growth was revised up to 2.2% annualized (0.5% quarter-on-quarter), more than double the initial 1.0% estimate. The upgrade was driven by stronger private consumption at 0.4% and improved inventory data, while domestic demand added 0.2 percentage point. External demand contributed 0.3 percentage point, though capital spending was revised lower to 0.6% from 1.3%. Despite this resilience, political uncertainty and U.S. tariff pressures may weigh on future momentum.

The U.S. labour market is showing clear signs of cooling: August job growth amounted to just 22,000 new positions, far below expectations, while the unemployment rate climbed to 4.3%, its highest level in nearly four years. Revisions revealed June job losses for the first time in over four years, further underscoring decelerating momentum. Wage growth remains modest at 3.7% annually, but reduced hours worked suggest possible softness in output. These developments are intensifying expectations for Federal Reserve rate cuts in the near term.

The weak U.S. labour data catalysed a sharp rebound in global bond markets, as investors repositioned amid expectations of more aggressive interest rate cuts by major central banks. Following a downturn, government bonds snapped back: the 30-year U.S. Treasury yield eased to 4.9%, and long-term yields in the UK and Japan also declined, marking a swift shift in sentiment.

The 6M Euribor is unchanged at 2.10% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.63% 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.