Oil prices trimmed their weekly gains as a strengthening dollar reduced the appeal of commodities, with Brent falling below $76 per barrel. However, supply concerns persist, as OPEC+ is expected to delay a production hike, a drone attack threatens Kazakh pipeline flows, and uncertainty remains over the resumption of Iraqi Kurdistan’s exports. Despite these factors oil prices increased 1.4% this week.
Gold prices are on track for an eighth consecutive weekly gain, driven by strong haven demand amid geopolitical and trade tensions, even though gold prices dipped slightly to about $2,926 an ounce on Friday. Investors have bolstered their positions, with record ETF holdings signaling robust buying. Concerns over potential shifts in US policy toward Ukraine, compounded by Trump’s upcoming meeting with Putin, continue to add to the market’s uncertainty.
Mexico’s economy contracted by 0.6% in Q4 2024, marking its worst quarterly decline since 2021, as domestic demand and private investment weakened amid trade tensions with the U.S. The agriculture sector shrank sharply due to drought, while industrial output also declined, contributing to a broader economic slowdown. With looming policy uncertainties and potential U.S. tariffs, growth is expected to remain sluggish in 2025, prompting expectations of further interest rate cuts by Mexico’s central bank.
The 6M Euribor decreased with 1 basis point to 2.46% compared to previous business day. The 10Y Swap decreased with 5 basis points to 2.41% 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.
Consumer confidence in the Netherlands declined in February, according to figures from Statistics Netherlands (CBS). The confidence index dropped from -28 to -32, marking the fifth consecutive decline.
Unemployment in the Netherlands increased in January, the first increase in five months. The unemployment rate reached 3.8% last month, compared to 3.7% in December.
Producer prices in Germany rose again on a yearly basis in January, according to Destatis, the German statistics office. Prices increased by 0.5% year-on-year, following a 0.8% rise in December.
The 6M Euribor decreased with 1 basis point to 2.47% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.46% 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.
Plans to boost European defence spending have raised long-term borrowing costs and steepened sovereign debt yield curves as investors expect more debt issuance. Countries like Germany and the UK are considering fiscal reforms to support larger defence budgets, driving market shifts amid inflation risks and uncertainties under the new U.S. administration.
China’s US Treasury holdings have decreased to their lowest level since 2009, as Beijing diversifies its foreign reserves by investing in assets like gold. The decline includes a $57 billion drop in direct holdings, The move signals China’s strategy to reduce reliance on US debt while exploring other financial assets.
The EU has agreed on new regulations targeting food and textile waste, requiring companies to bear the costs of clean-up. The rules mandate reductions in food waste and require textile producers to fund recycling, affecting fast-fashion and ecommerce platforms. Though some critics find the targets not stringent enough, the deal marks a significant regulatory shift for businesses selling into the EU.
The 6M Euribor decreased with 1 basis point to 2.48% compared to previous business day. The 10Y Swap increased with 5 basis points to 2.49% 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 data released by the French statistics agency Insee yesterday, inflation in France rose in January. Annually, inflation climbed to 1.7 percent, up from the 1.3 percent observed in December.
In the fourth quarter, South Africa’s unemployment rate decreased marginally to 31.9%, driven by employment growth in the finance and manufacturing sectors, according to data from Statistics South Africa. This marks the second consecutive quarterly reduction, improving from 32.1% in the previous period. The coalition government has prioritized job creation.
In January, Canada’s annual inflation rate rose to 1.9%, influenced by higher gasoline and natural gas prices, as official data showed yesterday. January’s Consumer Price Index recorded a six-month period starting from August, with inflation rates at or below 2%, aligning with the midpoint of the Bank of Canada’s target range of 1% to 3%.
The 6M Euribor decreased with 2 basis points to 2.49% compared to previous business day. The 10Y Swap increased with 1 basis point to 2.44% 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.
Europe’s aerospace and defense sector soared, adding €18 billion in market value as investors bet on rising military budgets. The STOXX Europe Aerospace & Defense index jumped 4.4%, hitting a record high, with Rheinmetall (+14%), BAE Systems (+9%), and Saab (+16%) leading the gains. Growing geopolitical tensions and NATO’s push for higher spending fuelled the rally.
Philadelphia Fed President Patrick Harker supports keeping U.S. interest rates steady, citing restrictive policy and resilient growth. While optimistic about inflation easing, he avoided committing to a timeline. Markets expect a rate cut in July, but Harker, an alternate FOMC member, will only vote if a full member is absent.
The Reserve Bank of Australia (RBA) cut rates by 25 basis points to 4.10%, its first cut since 2020, as inflation declines faster than expected. However, the RBA remains cautious, signalling a gradual easing cycle. The Australian dollar strengthened, but the ASX 200 fell 0.54% following the decision.
The 6M Euribor is unchanged at 2.51% compared to previous business day. The 10Y Swap increased with 1 basis point to 2.43% 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 EU plans to block imports of food containing banned pesticides, echoing Trump’s tariff strategies. This initiative aims to protect EU farmers and may target US crops like soybeans, potentially increasing trade tensions. The strategy reflects the EU’s commitment to enforcing stricter health and environmental standards in imports and trade agreements.
Japan is investing $1.5 billion in the development of perovskite solar cells, aiming to challenge China’s dominance in renewable energy and reduce its reliance on fossil fuels. These ultra-thin and flexible cells can be installed in urban areas where space for conventional solar panels is limited, with a target to generate energy equivalent to 20 nuclear plants by 2040. Although initially more costly, Japan’s strategy focuses on energy security and competitiveness by reducing dependence on China’s supply chains.
Donald Trump announced a “reciprocal” tariff plan targeting trade partners such as Brazil, India, Japan, Canada, and the EU, aiming to address what Washington sees as unfair trade practices. The plan involves imposing tariffs on a country-by-country basis, particularly focusing on nations with which the US has significant trade deficits. The tariffs could take effect as early as April 2.
The 6M Euribor increased with 2 basis points to 2.51% compared to previous business day. The 10Y Swap increased with 5 basis points to 2.42% 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.
Inflation in the Netherlands decreased significantly last month, according to data from Statistics Netherlands. The statistical office announced yesterday that inflation was 3.3% in January, compared to 4.1% in December.
In January, producer prices in the United States continued to rise, according to the U.S. Department of Labor. An increase of 0.4% was recorded compared to the previous month. In December, prices rose by 0.5% month-on-month, while a growth of 0.2% had been expected.
Industrial production in the eurozone decreased more than anticipated in December. According to Eurostat data released yesterday, production in the 20 countries using the euro fell by 1.1% compared to November. This decline surpassed predictions of a 0.6% decrease, with major contributors Germany and Italy experiencing drops of 2.9% and 3.1% respectively.
The 6M Euribor increased with 1 basis point to 2.49% compared to previous business day. The 10Y Swap decreased with 4 basis points to 2.37% 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 inflation rose unexpectedly to 3% in January, prompting the Federal Reserve to adopt a cautious approach to interest rate cuts. The increase exceeded economists’ predictions and altered market expectations for future Fed actions. The data has heightened concerns about economic overheating, with broad tax cuts and tariffs intensifying worries about further inflation.
The EU plans to shorten the settlement time for stock, bond, and fund trades to a single day starting in October 2027. This transition to T+1 settlement seeks to reduce margin requirements and costs, while boosting the attractiveness of EU capital markets for domestic and international investors. The shift reflects a broader global trend toward shorter settlement times, with some countries considering even faster, same-day settlements.
Chinese technology stocks have surged into a bull market, with the Hang Seng Tech index rising over 20% in the past month, driven by renewed investor interest following DeepSeek’s AI breakthrough. The AI model prompted a global reassessment of Chinese tech companies, boosting stocks of major tech firms. This positive sentiment contrasts with challenges faced by China’s broader markets and reflects a shift in perception toward Chinese innovation and tech adoption.
The 6M Euribor increased with 1 basis point to 2.48% compared to previous business day. The 10Y Swap increased with 4 basis points to 2.41% 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 Dutch government has raised nearly €2 billion by reopening a long-term bond, according to the Ministry of Finance on Tuesday. The opening of the bond, maturing on January 15, 2047, raised €1.995 billion, bringing the total outstanding amount to €22.505 billion. The bond yields 2.773%.
Confidence among small U.S. businesses fell in January after reaching a six-year high in December, according to data from the NFIB. The confidence index dropped from 105.1 in December to 102.8 in January but remained above the long-term average of 98 for the third consecutive month.
Federal Reserve Chair Jerome Powell reiterated the central bank’s goal of reducing inflation and stated that there is no urgency to lower interest rates. Speaking before the Senate Banking Committee on Tuesday, Powell described the economy as “strong overall,” with a “solid labor market” and inflation decreasing but still above the Fed’s 2% target.
The 6M Euribor is unchanged at 2.47% compared to previous business day. The 10Y Swap increased with 7 basis points to 2.37% 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 will receive €109 billion in private AI investments, including major contributions from the UAE and French firms. The move aims to strengthen Europe’s AI ecosystem and compete with the U.S. and China. Global leaders and tech CEOs are gathering in Paris to discuss the future of AI.
President Trump plans to impose new 25% tariffs on steel and aluminum, potentially disrupting global trade. While the U.S. steel industry may benefit, analysts warn of short-term demand drops. Similar tariffs in 2018 generated $1.4 billion in revenue for the US.
Chinese companies are paying record dividends and buying back shares, with payouts reaching $328 billion in 2023 and projected to hit $3.5 trillion in 2024. State-owned enterprises lead this trend, driven by government policies to boost shareholder returns and attract investors. While it supports stock markets, experts warn of capital outflows pressuring the yuan.
The 6M Euribor is unchanged at 2.47% compared to previous business day. The 10Y Swap is unchanged at 2.30% 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.
