The announced U.S. import tariffs on goods from Canada, Mexico, and China cause economic turmoil in European markets. Investors fear an escalating trade conflict, leading to significant declines in stock prices, especially among steel producers. These macroeconomic concerns pushed the Dutch indices AEX, AMX, and AScX into the red.

The European Central Bank is contemplating an interest rate cut in December, as high rates could potentially exacerbate the economic slowdown. Weak figures from the services sector increase the likelihood of a significant rate adjustment, according to traders, prompting policymakers to support the economy amidst these challenges.

The central bank of New Zealand reduced interest rates for the third time in four months to 4.25%, indicating further significant monetary easing, including a potential 0.5% cut in February, as inflation aligns with their target. Following the announcement, both the New Zealand dollar and short-term interest rates saw an initial increase.

The 6M Euribor decreased with 6 basis points to 2.71% compared to previous business day. The 10Y Swap is unchanged at 2.24% 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 Dow Jones and S&P 500 started the trading week strong, each touching new records as investors welcomed President-elect Donald Trump’s nomination of hedge fund manager Scott Bessent as Treasury secretary. This announcement led to a broad market rally, with over 80% of S&P 500 stocks trading higher. Bessent’s appointment is viewed favorably, potentially mitigating extreme protectionist policies and contributing to a positive market sentiment reflected in a significant drop in Treasury yields.

The US dollar surged as President-elect Donald Trump’s tariff threats overshadowed hopes that his Treasury Secretary pick, Scott Bessent, might soften the administration’s trade approach. Bloomberg’s dollar gauge increased by 0.3%, and the offshore yuan hit a four-month low following Trump’s announcement of a 10% tariff on Chinese goods.

Real estate stocks led the S&P 500 with a significant 1.7% rise, marked by gains in Public Storage and CBRE Group, while consumer discretionary stocks also performed well. On the downside, Cassava Sciences shares plummeted after halting trials for an Alzheimer’s drug. Meanwhile, the U.S. markets will likely focus on interest rate outlooks, with upcoming releases of the personal consumption expenditure price index and Fed policy meeting minutes during this short week ahead of Thanksgiving.

The 6M Euribor decreased with 1 basis point to 2.77% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.24% 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.

Japanese consumer prices increased slightly in October, with a 0.6% rise month-on-month following a 0.3% decline in September. However, annual inflation eased to 2.3% in October, compared to 2.5% in September, according to government data.

Both the services and industrial sectors in the eurozone contracted in November, according to preliminary S&P Global data. The services PMI dropped from 51.6 in October to 49.2 in November, while the industrial PMI fell from 45.8 to 45.1. The composite index declined from 50.0 to 48.1, marking its lowest level in ten months.

Global steel production rose slightly in October, supported by output growth in Europe and South America. The 71 steel-producing countries delivered 151.2 million tons of steel, a 0.4% increase year-on-year. This follows declines of 4.7% in September and 6.5% in August, according to the World Steel Association.

The 6M Euribor increased with 2 basis points to 2.78% compared to previous business day. The 10Y Swap decreased with 6 basis points to 2.27% 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 unemployment rate in the Netherlands remained unchanged in October compared to September, at 3.7%. According to Statistics Netherlands (CBS), 376,000 individuals were unemployed last month, consistent with September’s figures.

Consumer confidence in the eurozone declined in November, according to preliminary data from the European Commission. The confidence index fell from -12.5 in October to -13.7 this month.

The Turkish central bank maintained its policy interest rate at 50%. The announcement made on Thursday highlighted a decrease in the underlying trend of inflation in October and indicators pointing to a slowing domestic demand, reaching a disinflationary level.

The 6M Euribor increased with 2 basis points to 2.76% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.33% 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) warns of a potential Eurozone debt crisis due to low growth, high debts, and policy uncertainties affecting countries like Italy, Spain, and France. Its Financial Stability Review highlights risks concerning sovereign debt sustainability and rising government funding costs from weak productivity and macroeconomic shocks. The ECB also cautions about overvalued equity markets, potential asset bubbles, and financial challenges for banks amid higher consumer and corporate debt.

London is driving a surge in UK rental costs, with rent increases reaching 10.4% in October due to high demand and reduced offerings. Average monthly rent in London hit a record high of £2,200, as landlords face higher interest rates and rising costs. Nationwide, rent growth is accelerating, contributing to affordability challenges, especially for first-time buyers facing elevated mortgage rates.

Uganda plans to start operating the world’s longest heated oil pipeline by 2027, despite financing delays caused by protests, with drilling having already begun. The $4 billion pipeline will allow Uganda to export oil through Tanzania, but it faces criticism for potential environmental and community impacts. Uganda’s energy minister defends the project as a means to boost economic development while acknowledging the need to address climate change challenges.

The 6M Euribor is unchanged at 2.74% compared to previous business day. The 10Y Swap increased with 3 basis points to 2.35% 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 October, consumer prices in the eurozone increased by 2.0 percent year-on-year, up from 1.7 percent in September, aligning with the European Central Bank’s inflation target. Core inflation, a key indicator for the ECB, remained stable at 2.7 percent year-on-year, with a monthly increase of 0.2 percent. The monthly rise in consumer prices was 0.3 percent. 

Household investments in the Netherlands reached a record high of €190.4 billion in the third quarter, primarily driven by strong-performing American stocks and mutual funds. Investments in mutual funds increased by €3.9 billion to €118.9 billion, while direct investments saw a slight rise of 0.3%, mainly due to an increase in stock purchases. The S&P 500 index’s 5.4% rise and the Nasdaq’s 3% gain significantly contributed to household investment gains.

U.S. President elect Donald Trump has appointed Howard Lutnick as Secretary of Commerce. Lutnick is tasked with implementing increased import tariffs, as Trump has promised. During the campaign, Lutnick advocated for abolishing income tax and raising tariffs on Chinese goods.

The 6M Euribor decreased with 1 basis point to 2.74% compared to previous business day. The 10Y Swap is unchanged at 2.32% 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.

A study by the San Francisco Fed shows that the tight U.S. labor market’s contribution to inflation has eased since 2022-2023 but still adds 0.3-0.4% to inflation as of September 2024. While decline in excess demand dropped inflation by nearly 0.75% in two years, the labor market remains a factor. Fed policymakers are debating future rate adjustments, with inflation at 2.3% in October, above the 2% target.

The IMF has warned that escalating “tit-for-tat” tariffs, including planned U.S. tariffs on Chinese imports, could undermine Asia’s economic prospects by raising costs and disrupting supply chains. Despite Asia’s stronger growth outlook compared to global projections, trade tensions risk longer supply chains, inflation pressures, and financial instability as global monetary policy shifts.

China has cemented its influence in Latin America with the $3.5 billion Chancay megaport in Peru, enabling faster trade routes to Asia. This project, a sign of China’s growing assertiveness, will handle goods from across South America while cutting shipping times. Experts warn the U.S. is losing its grip on the region as China’s economic presence expands.

The 6M Euribor decreased with 2 basis points to 2.75% compared to previous business day. The 10Y Swap increased with 3 basis points to 2.32% 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.

Gazprom announced stable gas flows of 42.4 mcm to Europe via Ukraine, despite plans to cut Austria’s supply due to a contractual dispute. Austria, which typically accounts for 40% of Russian gas via Ukraine, saw deliveries suspended, leaving Hungary and Slovakia as the main recipients. This marks a significant decline in Russian gas exports to Europe, down from pre-2022 levels when it supplied 40% of EU needs.

US treasury yields hit multi-month highs, with the 10-year yield reaching 4.5% after strong economic data dampened expectations of a Federal Reserve rate cut in December. Bond demand surged as equities declined, stabilizing yields and improving rate-cut odds to about 60%. Fed officials emphasize that future decisions depend on inflation and incoming data. Meanwhile, U.S. retail sales rose 0.4% in October, driven by strong auto and electronics purchases, with September data revised upward, reflecting robust consumer spending.

Health stocks declined sharply after President-elect Trump nominated vaccine skeptic Robert F. Kennedy Jr. to lead health agencies, sparking concerns about vaccine perception and uncertainty in the biotech sector. Companies like Moderna and Pfizer saw significant losses, while major drugmakers and global health stocks also retreated.

The 6M Euribor decreased with 1 basis point to 2.77% compared to previous business day. The 10Y Swap is unchanged at 2.29% 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 economy grew by 0.8% in the third quarter of 2024 compared to the second quarter, albeit at a slower pace than before. The growth was mainly driven by household and government consumption, according to Statistics Netherlands.

The eurozone economy also grew in the third quarter, with an increase of 0.4% compared to the previous quarter. This was a slight rise from the 0.2% growth in the second quarter and was in line with economists’ expectations, based on preliminary figures from Eurostat.

Industrial production in the eurozone fell by 2.0% in September compared to August, after a previous increase of 1.5%. On a yearly basis, industrial production dropped by 2.8% in September, according to preliminary Eurostat data.

The 6M Euribor decreased with 2 basis points to 2.78% compared to previous business day. The 10Y Swap decreased with 6 basis points to 2.29% 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 October, US inflation rose to 2.6%, as expected by economists. Core inflation remained steady at 3.3% annually, indicating persistent underlying price pressures, particularly in services. The data influenced market expectations, with futures markets suggesting an increased likelihood of an interest rate reduction in December as the US economy showed signs of resilience but faced uncertainties following the presidential election.

Chancellor Rachel Reeves aims to reform the UK consumer redress system in financial services, particularly focusing on the Financial Ombudsman Service, amidst potential multibillion-pound compensation claims related to car finance mis-selling. In her Mansion House speech, she plans to assure economic stability and call for enhanced fraud prevention efforts from the technology and telecom sectors, with an emphasis on online payment fraud. Additionally, Reeves will propose pension reforms, advocating for the consolidation of local council retirement schemes into larger funds to invest in UK assets, though stopping short of mandating such investments.

US liquefied natural gas (LNG) exports could become a key factor in US-EU trade talks, with increased exports to Europe potentially lowering the continent’s dependence on Russian gas and addressing trade imbalances. The possible introduction of higher tariffs by Donald Trump on EU imports has driven interest in expanding LNG imports from the US as part of a strategic energy partnership. LNG Companies are optimistic about growth opportunities and regulatory changes under a potential second Trump administration, as the EU already sources a significant portion of its LNG from the US.

The 6M Euribor decreased with 3 basis points to 2.80% compared to previous business day. The 10Y Swap is unchanged at 2.35% 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.