The price of gold reached its highest level in four weeks on Wednesday. The conflict between Israel and Hamas plays an important role in this. The price of a troy ounce (31.1 grams) was $1938 Wednesday morning. As recently as mid-September, the price paid for a troy ounce of gold was $1930. Since Hamas’ attack on Israel, gold prices have risen about 6%.
As a result of events in the Middle East and rising interest rates, investors have a lower risk appetite. Consequently, European stock markets closed lower on Wednesday. The STOXX Europe 600, the German DAX, the French CAC and the British FTSE fell with an average of 1%. The current geopolitical situation is creating risk-averse sentiment in financial markets. In Europe, the leading German Bund edged up to 2.92% and it was revealed that British consumer prices rose 6.7% year-on-year over the past month, compared with a 6.6% rise forecast.
The Netherlands has issued a green bond with a volume of €5 bln on Tuesday. The coupon of the bond was set at 3.25%. The Netherlands aims to reduce its ecological footprint and will use the proceeds of the bond accordingly. The target of between €4bn and €5bn was amply met. Within hours, investors from around the world had subscribed for €18.3 bln. In the end, the Dutch Treasury decided to issue maximum amount of €4.98 bln.
The 6M Euribor increased with 2 basis points to 4.12% compared to previous business day. The 10Y Swap increased with 4 basis points to 3.47% 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.
On Tuesday it became clear that corporate inventories in the United States increased as expected last August as shown by figures published by the US Department of Commerce. Inventories rose by 0.4% in August, while an increase of 0.3% was expected. On an annual basis, corporate inventories increased by 1.0% in August. Turnovers rose by 1.3% on a monthly basis in August, while on an annual basis there was an increase of 0.2%.
Germany’s ZEW economic sentiment index improved in October, despite still being below zero. This conclusion was drawn by analysts from figures from the ZEW institute on Tuesday. The index improved from -11.4 to -1.1 in September, while the market expected an index figure of -8.5.
In the third quarter of this year, the Chinese economy grew faster than initially expected. This became clear on Wednesday from official figures from China. On a year-to-year basis, there was gross domestic product growth of 4.9%. In previous figures, the economists expected a growth of 4.5%. On a quarterly basis, China’s GDP increased by 1.3%.
The 6M Euribor decreased with 2 basis points to 4.10% compared to previous business day. The 10Y Swap increased with 7 basis points to 3.43% 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.
In August, the eurozone saw a year-on-year decline in exports, but imports decreased even more significantly, resulting in a shift from a trade deficit to a surplus, according to data from Eurostat, the European statistical office. Exports decreased by 3.9% year-on-year to €221.6 billion, while imports plummeted by 24.6% to €214.9 billion. As a result, the trade balance surplus in August amounted to €6.7 billion, in stark contrast to the €54.4 billion deficit recorded a year earlier.
On Monday, the Dutch government successfully raised €2.7 billion through the reopening of two short-term loans, as reported by the Ministry of Finance agency. The first reopened loan matures on January 30, 2024, offering a yield of 3.74%, while the second reopened loan matures on March 27, 2024, with a yield of 3.77%. The total outstanding amount for these loans is €6.18 billion and €2.45 billion, respectively. Prior to the auction, the target range for both loans was set between €1.0 billion and €2.0 billion. Ultimately, €3.32 billion for the first reopened loan and €3.23 billion for the second loan was issued.
The oil price dropped on Monday with 1.2% at $86.66 a barrel of West Texas Intermediate, following the largest one-day increase in six months recorded just last Friday. In addition to escalating tensions in the Middle East, oil markets are concerned about the limited availability of oil. On Friday, the United States announced that it is tightening sanctions on the export of Russian oil.
The 6M Euribor is unchanged at 4.12% compared to previous business day. The 10Y Swap increased with 5 basis points to 3.36% 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 Dutch Ministry of Finance has announced that the coupon for the new green government bond has been set at 3.25%. The Netherlands aims to raise 4 to 5 billion EUR on October 17th with the green bond with a maturity of January 15, 2044, with potential reopenings to increase the amount to around €10 billion.
In August, industrial production in the Eurozone increased by 0.6% compared to July, as reported by Eurostat. In July, there was a decline of 1.1%. Economists had expected a stable production. On an annual basis, industrial production decreased by 5.1% in August, compared to a 2.2% decline in July.
In September, U.S. import prices rose by 0.1%, falling below the expected 0.5%, according to the U.S. Department of Labor. On an annual basis, import prices declined by 1.7%, and export prices dropped by 4.1%. Additionally, the Department of Labor reported that fuel prices increased by 4.4% following a previous 8.8% increase.
The 6M Euribor increased with 1 basis point to 4.12% compared to previous business day. The 10Y Swap decreased with 5 basis points to 3.31% 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 September, consumer prices in the United States rose at the same rate as in August, while core inflation decreased. These findings were reported by the U.S. Department of Labor on Thursday. Consumer prices increased by 3.7% on an annual basis last month, matching the rate seen in August, and aligning with economists’ expectations of a 3.6% inflation rate. Core inflation, which factors out food and energy prices, stood at 4.1% on an annual basis in September, down from 4.3% in the previous month, in line with expectations. On a monthly basis, consumer prices rose by 0.4% in September, and core prices increased by 0.3%.
The percentage of homes in the Dutch private rental sector being offered for sale has increased from 4 to 7 percent within a year, according to Pararius. This has led to a decrease in available rental properties in the private sector and higher rental prices, especially in large cities. Part of the reason is private investors selling their rental properties due to unfavorable government measures. The introduction of the WOZ cap has also contributed to this shift. Pararius emphasizes the need for a long-term plan for the housing market to address the issues in the housing stock balance.
In August, British goods exports decreased, as reported by the UK’s Office for National Statistics (ONS). The export value declined by 2.2% on a monthly basis, while imports increased by 1.7%. The trade deficit for the three months ending in August reduced by £3.5 billion to £10.4 billion.
The 6M Euribor is unchanged at 4.11% compared to previous business day. The 10Y Swap increased with 7 basis points to 3.36% 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.
China has saved $10 billion by buying oil from oil states facing Western sanctions according to Reuters’ calculations based on data from traders and shiptrackers. This is an unintended consequence of sanctions by the United States and other countries to boycott Russia, Iran and Venezuela. This has caused oil import prices to fall for China. Reuters’ analysis compares how much Chinese importers would have paid for the same quantity from non-sanctioned producers. China shipped a record 2,765 million barrels of crude oil by sea from Iran, Russia and Venezuela in the first nine months of 2023, according to average data from tanker trackers Vortexa and Kpler.
Statistics Netherlands in reports that 25 more companies declared bankruptcy in September than a month before. This corresponds to an increase of 9%. This trend has been going on for over a year. In the first three quarters, bankruptcy increased by 60% compared to 2022. In 2021, a record low of 109 bankruptcies was declared in the month of August. As of May 2022, the number of bankruptcies was consistently higher than in the same month a year before. Specialty services, such as consulting are particularly struggling. In that sector, the number of bankruptcies doubled from the previous month.
After 1.5 years of stagnation, the market for company takeovers is reviving in the Netherlands and the Benelux, according tot the Financieel Dagblad (FD) after talks with banks and other parties closely involved in M&A. At the moment it is mainly the smaller companies that are attracting interest. The larger deals are still postponed because banks are reluctant to provide financing. The M&A market is a good indicator of the economic climate. When the economic climate recovers, the takeover market usually follows. Over the past 1.5 years, the takeover market fell silent due to rising interest rates, high inflation and the war in Ukraine.
The 6M Euribor decreased with 2 basis points to 4.11% compared to previous business day. The 10Y Swap decreased with 6 basis points to 3.29% 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.
On Tuesday, oil prices fell 0.5% to $85.97 a barrel after rising more than 4% on Monday following the outbreak of war between Israel and Gaza. Nonetheless traders remain concerned about the situation in Israel, as analysts say this could push the price of a barrel of oil up to last year’s levels. Israel itself is not a big exporter of oil, but a possible involvement of oil-rich Iran could have a significant impact on the supply of oil.
In line with expectations, German inflation has fallen to 4.5%. This was confirmed on Wednesday by final figures from the German statistics agency Destatis. The trend of falling inflation continues, with an inflation level on annual basis equal to 6.2% in July and 6.1% in August.
The United States has decided to allow the export of semiconductor equipment to SK Hynix and Samsung factories in China again without having to request permission. The factories of the two South Korean superpowers are labelled as ‘verified end users’, which means fewer permits are required to import material from abroad. This resolves the export issue for South Korean semiconductor manufacturers. Dutch semiconductor manufacturers also face or fear such export sanctions.
The 6M Euribor increased with 2 basis points to 4.13% compared to previous business day. The 10Y Swap is unchanged at 3.35% 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 the attachment, today’s market data on money and capital market rates as well as other rates are presented.
On Monday, oil prices surged following Hamas’ surprise attack on Israel over the weekend. A barrel of West Texas Intermediate increased by over 4%, reaching a settlement price of 86.38 USD. Brent oil also increased by more than 4%.
In August, the Dutch industry saw a decrease in production, although the decline was slightly less pronounced than in the previous month. This was revealed by data from Statistics Netherlands on Tuesday. The average daily production of Dutch industry in August was 8.0% lower than in August 2022. In July, production was 8.5% lower. Production has now been declining for eight consecutive months.
Dutch households spent slightly more in August, as indicated by data from Statistics Netherlands released on Tuesday. Expenditures increased by 0.5% year-on-year. According to these figures, spending on services saw an increase while spending on goods decreased. In July, expenditures increased by 0.1% year-on-year, while in June, they increased by 1.2%.
The 6M Euribor decreased with 2 basis points to 4.11% compared to previous business day. The 10Y Swap decreased with 9 basis points to 3.35% 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.
The U.S. jobs report for September shows that employment has increased much more than expected, with 336 thousand new jobs added, surpassing market’s expectation of 170 thousand jobs. Unemployment remained steady at 3.8%, the same as August, despite economists’ expectations of 3.7%.
In August, consumer credit in the United States decreased by $15.6 billion, as reported by the Federal Reserve. This follows an increase of $11 billion in July, where originally, an increase of $10.4 billion had been reported.
After the outbreak of the war between Israel and Hamas, the Israeli currency depreciated. The Israeli central bank attempted to support the currency by selling $30 billion of foreign currency. In addition to the pressure on the currency, the price of gold is now rising as a safe haven, and the price of oil is increasing due to the new instability in the region.
The 6M Euribor is unchanged at 4.13% compared to previous business day. The 10Y Swap increased with 1 basis point to 3.44% 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.
In the Netherlands, the prices of existing homes increased by 1.7% in the third quarter compared to the previous quarter, prices are still 1.7% lower on an annual basis. This marks the second consecutive quarterly increase. The sale of new homes continues to lag, primarily due to rising interest rates affecting borrowing capacity. Despite a slight increase in confidence and activity in the market, rising interest rates remain an obstacle for homebuyers, as emphasized by the Dutch Association of Realtors (NVM). It remains crucial to increase supply to meet demand.
The Italian parliament has given the green light for a revision of the controversial bank tax, despite opposition from investors. Under the leadership of Prime Minister Giorgia Meloni’s right-wing government, a plan to tax bank profits received support, with an announced 40% tax on excess profits resulting from ECB interest rate hikes in August. The revision means that banks will have the option to reduce taxation by setting aside additional capital reserves. The parliamentary approval marks the end of weeks of political negotiations and follows the announcement of the bank tax last summer, which led to significant market value losses for Italian banks. The amendment received support from Forza Italia.
In August, data from the French statistical agency Insee revealed that industrial production in France decreased by just 0.3 percent on a monthly basis, which was slightly less than economists’ expectations of a 0.5 percent decline. In July, production increased 0.5 percent, revised from an initially reported 0.8 percent growth. The manufacturing sector experienced a 0.4 percent decline in August, following a 0.4 percent growth in July, also revised down from an earlier reported 0.7 percent increase.The 6M Euribor is unchanged at 4.13% compared to previous business day. The 10Y Swap decreased with 5 basis points to 3.43% 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.
