U.S. nonfarm payrolls increased by 256,000 in December, significantly surpassing expectations, while the unemployment rate declined to 4.1%. Annual wage growth slowed to 3.9%, suggesting reduced inflationary pressures. Stock market futures dropped, and Treasury yields rose as traders lowered their expectations for Federal Reserve rate cuts.
California wildfires have caused significant damage, with insured losses potentially exceeding $20 billion, impacting major insurers like Mercury (-17%) and utilities such as Edison International (-13%). Moody’s expects the wildfires to rank among the costliest in state history. Power outages have affected over 246,000 residents, with utilities like PG&E seeing sharp stock declines amid mounting liabilities.
British pension funds face increased collateral demands for Liability Driven Investment (LDI) strategies amid rising bond yields, but the market remains stable, unlike the 2022 crisis. Asset managers like BlackRock emphasize improved resilience, though monitoring collateral remains critical. The sharp selloff in gilts has pushed yields to multi-decade highs, testing the system’s preparedness.
The 6M Euribor increased with 1 basis point to 2.65% compared to previous business day. The 10Y Swap increased with 3 basis points to 2.56% 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.
U.S. stock exchanges were closed on Thursday due to a national day of mourning following the death of former President Jimmy Carter on December 29. A state funeral for Carter is being held in Washington. Oil markets remained open, with WTI crude prices rising by 0.5% in the afternoon.
Retail sales in the eurozone grew slightly by 0.1% in November compared to the previous month, according to Eurostat. Economists had forecast a larger increase of 0.3%.
German industrial production increased by 1.5% in November, seasonally and workday-adjusted, according to Destatis. This surpassed economists’ expectations of a 0.5% increase.
The 6M Euribor increased with 1 basis point to 2.64% compared to previous business day. The 10Y Swap increased with 1 basis point to 2.53% 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.
China’s currency, the renminbi, dropped to a 16-month low due to concerns over Trump’s potential tariffs and strong US economic data boosting the dollar. Traders anticipate the People’s Bank of China (PBoC) may further weaken the currency to counteract the impact of these tariffs on exports. The PBoC is managing exchange rate pressures while awaiting more information on US trade policies, amid broader economic challenges and global dollar strength.
UK 10-year borrowing costs hit their highest since 2008, as a bond sell-off complicates the Labour government’s budget rules and fiscal flexibility. The rise in gilt yields and a significant drop in sterling highlight investor worries about the UK’s borrowing needs, stagnant growth, and inflation. Chancellor Rachel Reeves may need to take corrective measures like spending cuts, particularly with upcoming fiscal forecasts and potential growth revisions by the Office for Budget Responsibility.
Germany is urging the EU to ease sanctions on Syria in exchange for reforms from its new leadership to support political transition and reconstruction. Proposals include lifting penalties if Syria implements reforms on social issues and protections for minorities, targeting leverage over Ahmed al-Sharaa. These changes, focusing also on easing banking and energy restrictions, are pending discussion among EU foreign ministers, with the support from all member states still uncertain.The 6M Euribor increased with 4 basis points to 2.63% compared to previous business day.
The 10Y Swap increased with 5 basis points to 2.52% 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 inflation rose to 2.4% in December from November’s 2.2% due to higher energy prices and persistently elevated service costs, Eurostat reported yesterday. However, inflation is expected to decline, with the European Central Bank’s target anticipated to be reached in the latter half of the year.
In December, the US services sector showed stronger growth than initially predicted, according to the Institute for Supply Management. The purchasing managers’ index rose from 52.1 in November to 54.1 last month. Economists had anticipated an increase to 53.4 for December.
In December, Swiss inflation decreased further, stimulating speculation for additional interest rate reductions by the Swiss National Bank this year. The Federal Statistics Office reported a 0.6% rise in prices compared to the previous year, down from November’s 0.7%.
The 6M Euribor increased with 4 basis points to 2.59% compared to previous business day. The 10Y Swap increased with 3 basis points to 2.47% 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 inflation unexpectedly climbed to 2.9% in December, surpassing forecasts and marking the third month above the ECB’s 2% target. Core inflation, excluding food and energy, reached 3.1%. The data arrives as Germany faces political uncertainty ahead of elections. Dutch inflation increased to 4.1% in December, according to Statistics Netherlands.
Canadian markets remained stable as Trudeau announced his resignation as Liberal Party leader, retaining his role as prime minister until a new leader is chosen. The S&P TSX index rose 0.1%, with the Canadian dollar and the iShares MSCI Canada ETF each gaining 0.5%. Trudeau’s departure follows internal party struggles and economic challenges, while the Conservative Party leads in polls.
Bitcoin rocketed past $100,000, gaining 4% to $102,234, with broader crypto markets also climbing, as measured by the CoinDesk 20 index. The positive trend correlates with a rebound in tech stocks, boosting the Nasdaq by 1.7%. Crypto-related stocks like Coinbase and MicroStrategy saw gains. Optimism in the market is linked to anticipated regulatory support post-election and bullish forecasts.
The 6M Euribor decreased with 1 basis point to 2.55% compared to previous business day. The 10Y Swap increased with 3 basis points 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.
Despite economic challenges and political uncertainty, Germany’s DAX Index is projected to lead European peers with over 10% earnings per share growth in 2025, driven by cyclicals and automakers like BMW and Volkswagen. However, risks include high reliance on China, potential U.S. tariffs, and a February election that could reshape Germany’s government. Longer-term economic revival hinges on clear leadership and fiscal expansion to address GDP contraction risks.
The rapid growth of AI is driving a surge in energy demand, with electricity consumption projected to skyrocket from 8 terawatt-hours in 2024 to 652 terawatt-hours by 2030. Nuclear power, seen ]as a clean and efficient energy source, is gaining momentum, with US companies like Cameco and Southern Company poised to benefit from the shift. Cameco leads in uranium production, while Southern Company offers a diversified energy portfolio, positioning both for long-term growth amid increasing support for nuclear energy.
Donald Trump criticized the UK’s windfall tax on oil and gas producers, calling it a “big mistake” and urging North Sea development, aligning with his pro-oil stance. The tax, raised to 78% under PM Keir Starmer, has prompted some US firms to consider exiting the UK market. Trump’s remarks echo broader critiques from figures like Elon Musk, who has attacked Starmer’s policies and leadership in recent days.
The 6M Euribor decreased with 1 basis point to 2.56% compared to previous business day. The 10Y Swap increased with 3 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 UK’s industrial sector contracted even further in December, according to data from S&P Global released on Thursday. The purchasing managers’ index (PMI) for the industry dropped from 48.0 in November to 47.0 in December, marking the lowest point in 11 months.
Industrial activity in the eurozone continued to shrink in December, as shown by the final data from S&P Global released on Thursday. The PMI for the industry slightly decreased from 45.2 in November to 45.1 in December. The preliminary figure had remained unchanged from November.
China’s industrial sector grew again in December, but at a slower pace compared to November, according to data from S&P Global released on Thursday. The PMI for the industry dropped from 51.5 in November to 50.5 in December.
The 6M Euribor increased with 1 basis point to 2.57% compared to previous business day. The 10Y Swap increased with 2 basis points to 2.38% 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.
Russia halted gas exports through Ukraine, ending decades of energy dominance in Europe. The European Union (EU) has secured alternative supplies, minimizing impacts on consumers, while Ukraine and Gazprom face significant financial losses. Ukraine calls it a “historic event,” highlighting Europe’s shift from Russian energy reliance.
Asian markets fell amid caution over Donald Trump’s return to the White House and concerns about Chinese economic recovery. The MSCI Asia-Pacific Index dropped 0.5%, with Chinese and Hong Kong stocks leading declines. Investors remain wary of external risks and potential United States U.S.-China trade tensions.
The dollar gained against most currencies as markets expect slower Federal reserve (Fed) rate decreases in 2025 compared to more aggressive easing by the European Central Bank (ECB) and Bank of England (BoE). Treasury yields are forecasted to rise, while gold surged 27% in 2024, continuing its upward momentum as a key safe-haven asset.
The 6M Euribor decreased with 2 basis points to 2.56% compared to previous business day. The 10Y Swap is unchanged at 2.36% 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.
Spanish inflation increased in December, according to data released on Monday by the Spanish statistical office, Ine. Inflation rose from 2.4% in November to 2.8% in December.
Producer prices in the Dutch industry remained nearly unchanged in November, as reported by Statistics Netherlands (CBS) on Monday. On average, prices were 0.1% lower than in November 2023. In October, prices had been 1.3% lower than the previous year.
The Japanese industrial sector contracted again in December, but the decline was only marginal. This was revealed on Monday by final figures from S&P Global. The Purchasing Managers’ Index (PMI) for the industry rose from 49.0 in November to 49.6 in December.
The 6M Euribor decreased with 2 basis points to 2.58% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.36% 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 U.S. experienced an 18% surge in homelessness over the past year, largely attributed to factors such as unaffordable housing, persistent inflation, and increasing immigration, according to the Department of Housing and Urban Development. This increase means approximately 23 out of every 10,000 individuals were without stable housing, spanning emergency shelters to unsheltered conditions. Particularly alarming is the 33% rise in homelessness among children under 18, totaling 150,000 affected youths.
France is aiming for a budget deficit just above 5% of GDP by 2025, according to Finance Minister Eric Lombard. This target is slightly higher than that of the previous government but lower than the expected deficit of over 6% this year, which is twice the European standard. Lombard emphasizes that the focus will be on reducing government spending, with minimal tax increases, to protect growth.
The price of crude oil rose on Friday after Israel conducted military actions against Houthi rebels in Yemen, raising concerns about increased instability in the oil-rich region. Additionally, a decrease of 3.2 million barrels in U.S. oil inventories contributed to the upward price trend.
The 6M Euribor decreased with 1 basis point to 2.60% compared to previous business day. The 10Y Swap increased with 6 basis points to 2.39% 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.
