Retail sales in the eurozone rose again in July on a yearly basis (+2.2%), but at a slower pace than in June (+3.5%). On a monthly basis, sales fell by 0.5% after a 0.6% increase in June.
In the US, labour costs rose by 1.0% in the second quarter, less than previously estimated. At the same time, labour productivity increased more strongly, up 3.3%. In the first quarter, labour costs had surged (+6.9%) while productivity fell (-1.8%).
The US trade deficit widened sharply in July to $78.3 billion (+32.5%) after a steep decline in June. Exports rose slightly by 0.3% to $280.5 billion, while imports jumped 5.9% to $358.8 billion. The deficit with China grew to $14.7 billion, the deficit with the EU stood at $8.6 billion.
The 6M Euribor increased with 1 basis point to 2.10% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.66% 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.
According to figures released yesterday by Eurostat, producer prices in the eurozone rose more than expected in July, with a monthly increase of 0.4 percent and an annual gain of 0.2 percent. Economists had anticipated a rise of 0.1 percent on a monthly basis. Energy costs climbed the most, up 1.5 percent, while prices excluding energy remained unchanged.
In August, Germany’s services sector contracted again following modest growth in July, according to figures released yesterday by S&P Global. The purchasing managers’ index fell to 49.3, the lowest level in three months, indicating a slowdown in economic activity.
The number of job openings in the U.S. fell to 7.2 million in July, down from 7.5 million a year earlier, according to figures released yesterday by the U.S. Department of Labor. The decline is also evident compared with June 2025, when 7.4 million positions were available.
The 6M Euribor is unchanged at 2.09% compared to previous business day. The 10Y Swap decreased with 4 basis points to 2.68% 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.
Euro area inflation rose to 2.1 percent in August from 2 percent in July, with core inflation steady at 2.3 percent and services inflation easing to 3.1 percent. The figures support expectations that the European Central Bank will keep rates unchanged at its September meeting, after holding the deposit rate at 2 percent in July. Policymakers remain divided on future cuts as some policymakers’ stress balanced risks while others warn tariffs and domestic pressures could increase prices.
30-year UK gilt yields climbed to 5.69 percent, the highest since 1998, while the pound dropped 1.3 percent to 1.3376 USD and the FTSE 100 slipped 0.5 percent. The government faces a £35 billion budget gap as rising borrowing costs add pressure for tax hikes or spending cuts. Investors are questioning fiscal credibility as 30-year gilt yields have surged over 100 basis points in the past year, outpacing US and German bonds.
U.S. manufacturing contracted in August for a sixth straight month with the PMI at 48.7, as tariffs pushed costs higher and weakened demand. Factory construction spending fell 6.7% from a year earlier, while layoffs and frozen hiring signalled low confidence in recovery. Some relief came from rising investment in AI and intellectual property, which economists expect to partly offset tariff-related pressures.
The 6M Euribor increased with 2 basis points to 2.09% compared to previous business day. The 10Y Swap increased with 4 basis points to 2.72% 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 Netherlands raised nearly €3 billion through the reopening of a short-term bond and the issuance of a new one, according to the Ministry of Finance. The reopened bond, maturing in October 2025, raised €1.47 billion at a 1.948% coupon, while the new bond, maturing in February 2026, brought in €1.44 billion at 1.954%. Demand for both auctions slightly exceeded €2 billion.
Gold is trading close to record highs, supported by expectations of U.S. Federal Reserve rate cuts and a weaker dollar, while silver surged above $40 per ounce for the first time since 2011. Analysts point to sticky inflation, weaker consumer sentiment, and tight supply as drivers, with markets awaiting Friday’s U.S. jobs report for further Fed guidance.
Donald Trump stated that India has offered to cut import tariffs on U.S. goods to zero after Washington doubled tariffs to 50% in response to India’s purchases of Russian oil. He criticized India for not making this move years earlier and argued that American businesses face major hurdles in the Indian market, while India continues to buy most of its oil and military systems from Russia.
The 6M Euribor is unchanged at 2.07% compared to previous business day. The 10Y Swap increased with 2 basis points to 2.68% 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.
Sovereign bond markets are transmitting the burden of higher yields directly onto governments, with the UK’s 30-year gilt yield climbing above 5.0% for the first time since 1998. Similar upward pressure is evident in German Bunds and French OATs, where long-dated yields have risen by more than 40 basis points over the past month. The move reflects reduced central bank demand and growing investor concern over debt sustainability, tightening fiscal space across Europe.
The Indian rupee continued to depreciate, breaching the critical ₹88/USD level and reaching a record low of ₹88.31 in early trading. Nearly $950 million in foreign equity outflows last week and uncertainty around U.S. tariff policy have intensified downward pressure on the currency. Meanwhile, 10-year Indian government bond yields rose to 7.33%, as investors demand fiscal clarity amid widening deficits.
Asian equities traded lower at the start of September, led by a retreat in regional technology stocks, while China stood out with relative resilience. The CSI 300 index gained 0.6%, supported by optimism around artificial intelligence and a private PMI showing factory activity expanding at its fastest pace in five months (50.5). In contrast, Japan’s Nikkei 225 fell 0.8% and South Korea’s Kospi declined 1.1%, reflecting investor caution ahead of key U.S. economic data.
The 6M Euribor increased with 1 basis point to 2.07% compared to previous business day. The 10Y Swap increased with 1 basis point to 2.66% 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.
Dutch manufacturers were slightly less pessimistic in August, with the confidence index rising from -4.9 in July to -2.2, according to Statistics Netherlands (CBS). While sentiment improved, it remained below the 20-year average of -1.3. The index peaked at 10.4 in October 2021 and hit a low of -31.5 in April 2020.
Federal Reserve Governor Lisa Cook has filed a lawsuit challenging President Donald Trump’s attempt to remove her from office. Cook argues that Trump violated federal law, which only allows dismissal for “cause.” The dispute centers on allegations of mortgage fraud in 2021, prior to her appointment, which Cook claims are unfounded and irrelevant to her current role.
The U.S. economy grew by 3.3% in the second quarter, exceeding the initial estimate of 3.0%, the Commerce Department reported. Markets had expected a revision to 3.1%. Inflation came in at 2.0%, slightly below the earlier forecast of 2.1%, while core prices rose by 2.5%, matching previous estimates.
The 6M Euribor is unchanged at 2.06% compared to previous business day. The 10Y Swap decreased with 1 basis point 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.
France’s 10-year bond yield spread over Germany widened to 80 basis points, up from 65 two weeks ago, as borrowing costs rose to 3.53 percent. The move follows Prime Minister Francois Bayrou’s call for a September confidence vote on €44 billion in spending cuts and tax hikes, which has fuelled investor unease. Analysts warn the gap could reach 100 basis points while Fitch may downgrade France to A+ on September 12th, threatening both bond stability and a fragile 0.7 percent growth outlook.
The European Union will fast track legislation to remove tariffs on US industrial goods and lower duties on certain seafood and agricultural products in order to secure reduced American tariffs on European cars. EU auto exports currently face a 27.5 percent tariff in the US, with Germany alone sending $34.9 billion worth of cars and parts last year. The deal, seen as favouring the US, would allow tariffs on European automobiles to fall to 15 percent retroactive to August 1st if passed this month.
South Korea’s central bank kept its policy rate at 2.5% for the second straight meeting, citing stable inflation and modest economic growth. The Bank of Korea upgraded its 2025 inflation forecast to 2% and GDP growth to 0.9%, with exports still strong but expected to slow under U.S. tariffs. Recent trade deals with the U.S. included $350 billion in South Korean investment and a $50 billion aviation purchase, while analysts see a possible rate cut as early as October.
The 6M Euribor decreased with 1 basis point to 2.06% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.66% 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 August, concerns among U.S. consumers about the economy grew slightly, according to new data from research firm The Conference Board. The confidence index slipped to 97.4 points, while expectations for the next six months once again remained below the 80-point threshold, a level often associated with recession risks.
Australia’s inflation rate exceeded expectations in July, rising 2.8% year-on-year, driven largely by a spike in electricity costs linked to government rebates. The increase in the consumer price index puts an interest rate cut next month in doubt.
Confidence among French households in the economy decreased slightly in August, according to data from the statistics agency Insee. The index slipped to 87 points, leaving sentiment well below the long-term average of 100.
The 6M Euribor increased with 1 basis point to 2.07% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.68% 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 Reserve Bank of Australia signalled that further rate cuts are likely in the months ahead, though the pace remains uncertain. Headline inflation slowed to 2.1% in July, down from 2.6% earlier in the year, while core inflation eased to 3.7%, its lowest since mid-2022. With unemployment holding near 4.0%, policymakers stressed that growth risks justify easing despite a resilient labour market.
The Resolution Foundation warned that U.K. unemployment could rise to 5.0% by early 2026, up from 4.4% currently. This would mark the highest level since early 2021, reflecting weaker hiring momentum and slowing consumer demand. With inflation still hovering at 3.2%, the Bank of England faces a difficult policy mix of softer labour conditions alongside above-target prices.
Emerging markets attracted over USD 7bn of inflows in August, driven by reallocations away from U.S. assets amid fiscal concerns. Emerging Markets equities rose 3.1% month-to-date, outpacing developed markets, while local-currency bonds saw yields compress by 15bps on average. Analysts highlight that persistent U.S. deficits near 6% of GDP and rising Treasury supply are pushing investors toward higher-yielding EM alternatives.
The 6M Euribor decreased with 2 basis points to 2.06% compared to previous business day. The 10Y Swap increased with 4 basis points to 2.71% 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.
Germany’s economy shrank by 0.3% in the second quarter, a sharper decline than initially estimated, mainly due to weak manufacturing and investment. Economists warn that a substantial recovery is unlikely before 2026, though upcoming fiscal expansion and lower ECB interest rates may bring modest support. The government stresses the need for deep structural reforms to boost growth.
Private equity funds are struggling to raise new capital, collecting just $592 million in the year to June, which is the lowest level in seven years. Despite offering fee discounts and favourable terms, investor appetite has weakened, partly because funds are locked in existing investments and returns are delayed. European-focused funds are holding up better than those targeting the US, where inflows have fallen sharply.
Starting September 1, Canada will remove billions of dollars in tariffs on US goods in an effort to ease trade tensions with Washington. Prime Minister Mark Carney said that over 85% of Canada-US trade will be tariff-free, though duties on steel and aluminium will remain in place. The decision comes after months of trade frictions sparked by Trump’s import measures, with both sides expressing willingness to continue talks.
The 6M Euribor decreased with 1 basis point to 2.08% compared to previous business day. The 10Y Swap decreased 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.
