In the third quarter of 2023, labor costs in the eurozone increased by 5.3% year-on-year, and in the EU by 5.7%, according to Eurostat. Croatia showed the largest rise of 16.3%, followed by Hungary and Bulgaria. Belgium saw a rise of 7.9%, while the increase in the Netherlands was 6.4%.

S&P Global released preliminary data for December on the eurozone and the UK. The eurozone experienced a drop in the services sector index to 48.1, below the expected 48.2. The industrial index remained steady at 44.2. The UK exhibited economic growth with a rise in the services sector index to 52.7 and a composite index of 51.7, surpassing the predicted 51.0.

The People’s Bank of China injects 1.45 trillion yuan (approximately 200 billion euros) into the economy, as announced by the Chinese central bank. The interest rate remains at 2.5%. The injection includes one-year loans, bolstering the economy by 800 billion yuan, comprising of 650 billion yuan in medium-term loans. Additionally, short-term loans of 50 billion yuan were issued at a 1.8% interest rate, adding to the existing 197 billion yuan under that loan.

The 6M Euribor decreased with 1 basis point to 3.94% compared to previous business day. The 10Y Swap decreased with 10 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.

European Central Bank President Christine Lagarde emphasized during an explanation of the ECB’s interest rate decision on Thursday that there are currently no plans to lower interest rates. She stated that there has been no discussion about lowering interest rates and reiterated that the ECB will continue to depend on incoming data for its policy decisions.

On Thursday, the ECB also unveiled new economic projections. The eurozone’s economy is expected to grow by 0.6% this year and by 0.8% next year. In both 2025 and 2026, the gross domestic product is projected to increase by 1.5%.

For 2023, the central bank anticipates an average inflation rate of 5.4%. Inflation is expected to moderate to 2.7% next year and further to 2.1% in 2025. The ECB believes that by 2026, inflation will fall below 2%.

On Thursday, the Bank of England announced that it has once again decided not to raise interest rates, with a majority of the votes. The Bank Rate remains unchanged at 5.25%. As stated by the Bank of England, inflation has decreased as expected, but key indicators for sustained inflation in the United Kingdom remain elevated.

The 6M Euribor decreased with 1 basis point to 3.95% compared to previous business day. The 10Y Swap decreased with 5 basis points to 2.59% 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. Federal Reserve anticipates a 0.75% decrease in the policy rate next year, while the current rate remains unchanged within a range of 5.25% to 5.50%. The markets responded positively; during the press conference, the S&P 500 index rose by over 1%, and interest rates also declined. Fed Chair Powell expects no further interest rate hikes and envisions inflation under control by 2026 without a recession. He emphasizes that the battle against inflation is not yet won and seeks more confirmation.

Argentina is adapting to the 54% mega-devaluation implemented by President Javier Milei to combat the economic crisis and inflation. The devaluation, part of a cost-cutting package, has garnered support from financial markets and the IMF, but will impact the population financially in the short term. The official exchange rate is now 800 pesos per U.S. dollar, compared to nearly 400 previously. The devaluation aims to boost exports and enhance economic competitiveness. Higher import taxes aim to improve the trade balance and restore dollar reserves.

On Thursday morning, most Asian markets showed gains following new record levels on Wall Street. However, the Japanese Nikkei 225 declined by almost 1%, influenced by the stronger yen in response to expectations of U.S. interest rate cuts, impacting the competitiveness of Japanese exporters. Conversely, Sydney and Seoul rose by 1.7% and 1.2%, respectively. Hong Kong and New Delhi gained around 1%, while Shanghai recorded a slight decline.

The 6M Euribor is unchanged at 3.96% compared to previous business day. The 10Y Swap decreased with 7 basis points to 2.64% 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.

West Texas Intermediate (WTI) experienced a decline of up to 4.3%, falling below $69 per barrel, marking its lowest point since late June. The persistent decrease extends over seven consecutive weeks, despite OPEC and its allies implementing new production cuts, failing to arrest the downward trend. The ongoing pressure on prices is caused by emerging indications that crude supplies remain abundant. Russia’s seaborne crude exports registered their highest weekly average since early July, while a U.S. government agency revised its oil output estimate for the year upward by 30,000 barrels per day compared to last month’s projection. The spreads between monthly contracts persist in reflecting an oversupply scenario. The front end of the Brent futures curve closed this week at its lowest level since June, emphasizing the challenges posed by surplus oil in the market.

Consumer prices in the United States rose in November as expected, according to data from the U.S. Department of Labor released on Tuesday. Consumer prices increased by 3.1% on a year-on-year basis last month, compared to 3.2% in the previous month. Economists had anticipated an inflation rate of 3.1%. The core inflation, which adjusts for food and energy prices, remained at 4.0% on a year-on-year basis both in November and October, in line with expectations. On a monthly basis, consumer prices rose by 0.1%, and core prices increased by 0.3%. This compares to 0.0% and 0.2% in October.

The German ZEW Economic Sentiment Index increased further in December, as indicated by data from the German research institute. The ZEW Expectations Index rose from 9.8 in November to 12.8 this month, surpassing the market’s expectation of an index of 8.0. Additionally, the index for the current situation improved from minus 79.8 in November to minus 77.1 in December.The 6M Euribor increased with 2 basis points to 3.96% compared to previous business day. The 10Y Swap decreased 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.

Consumer goods and services were 1.6 percent more expensive in November compared to the same month a year earlier. This was reported by the Central Bureau of Statistics (CBS) based on final figures, which are consistent with the earlier reported quick estimate. This marked a return to price increases after deflation in October when the average price level dropped by 0.4 percent.

On Monday, Wall Street closed higher, heading towards the Fed decision later this week. Tesla and Apple are experiencing a pullback. The AEX index has continued its upward trend, with tech companies Adyen and ASML particularly seeing gains.

This morning, it was announced that the Dutch government intends to further reduce its stake in ABN Amro. The ABN AMRO stock is currently trading around its lowest level of the year, and the sale is expected to have a negative impact on the stock price. No specific timeframe has been set for the completion of the sale.

The 6M Euribor decreased with 1 basis point to 3.94% compared to previous business day. The 10Y Swap increased with 1 basis point to 2.75% 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, the Dutch industry significantly reduced its production, witnessing an annual decline of 11.1%. Most sectors experienced decreases, notably the chemical industry, while machine repair and installation showed an increase. On a monthly basis, production decreased with 0.5%.

In November, U.S. employment exceeded expectations with a growth of 199,000 jobs. Unemployment dropped to 3.7%, while hourly wage growth and annual earnings remained on track. Revised job figures for September and October were adjusted to 262,000 and 150,000, respectively.

German inflation dropped in November to 3.2% annually, down from October’s 3.8%. Monthly, prices declined by 0.4%, compared to a stable level earlier.

The 6M Euribor is unchanged at 3.95% compared to previous business day. The 10Y Swap increased with 7 basis points to 2.74% 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 third quarter, the economy of the Eurozone experienced a slight contraction compared to the previous quarter. The gross domestic product decreased by 0.1% in the last quarter. On an annual basis, the Eurozone did not grow in the third quarter, following a 0.5% growth in the preceding quarter. This growth figure has been revised downward from the initially reported 0.1%.

The pressure on oil prices is increasing, with Brent crude dropping just below $75 per barrel on Thursday, a level not seen in the past five months. The American counterpart, West Texas Intermediate (WTI), has also become significantly cheaper, hovering just below $70 per barrel. While oil prices peaked at nearly $97 per barrel for Brent crude in September, macroeconomic concerns are currently exerting downward pressure on oil prices.

In October, the Dutch industry significantly reduced its production, according to data from Statistics Netherlands. On an annual basis, the average daily production of the Dutch industry decreased by 11.1%. In September, production declined with 11.0%. The production has been decreasing for ten consecutive months now.

The 6M Euribor is unchanged at 3.95% compared to previous business day. The 10Y Swap decreased with 1 basis point 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.

In November, data from the Chinese government revealed an unexpected 0.5% year-on-year increase in export in dollars, contrary to economists’ expectations. Simultaneously, imports decreased by 0.6%, deviating from the predicted 3.0% growth. The Chinese trade surplus rose to $68.39 billion, exceeding the anticipated $57.1 billion. Both in dollars and yuan, exports increased by 0.5% and 1.7%, respectively, while imports in yuan grew by 0.6%.

In October, the deficit on the U.S. trade balance increased, as indicated by data from the U.S. Department of Commerce. The deficit rose from $61.2 billion in September to $64.3 billion in October, slightly higher than the expected $64.1 billion according to analysts. Export decreased by 1.0% to $258.8 billion, while imports increased by 0.2% to $323.0 billion. The trade deficit with the European Union was $19.2 billion, and with China, there was a deficit of $63.8 billion.

In October, Dutch households spent less compared to the same period last year, according to data from Statistics Netherlands. Expenditures decreased by 0.2% on a yearly basis. Statistics Netherlands reports a reduction in spending on goods but an increase in spending on services. In September, there was a larger decrease in expenditures on a yearly basis, namely 1.9%. Statistics Netherlands emphasizes that consumption figures are volume figures, adjusted for price changes. Additionally, Statistics Netherlands notes that the conditions for consumption in November were less favorable than in October.

The 6M Euribor is unchanged at 3.95% compared to previous business day. The 10Y Swap decreased with 5 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.

Moody’s has revised the outlook for China’s credit rating from stable to negative, while maintaining the A1 rating. This adjustment is driven by concerns about the slowing economic growth, increasing debt burden of local governments, and the troubled real estate sector, as indicated in a report released on Tuesday. Moody’s anticipates that the world’s second-largest economy will grow with 4.0% in 2024 and 2025. In the subsequent five years, economic growth is expected to slow to 3.8%, as predicted by the credit rating agency. In the third quarter, China’s gross domestic product showed a year-on-year increase of 4.9%, marking a deceleration from the 6.3% growth observed in the second quarter.

In October, producer prices in the Eurozone showed a further increase, albeit at a slower pace. According to data from Eurostat, the European statistical office, the monthly rise in producer prices was 0.2%, compared to a 0.5% increase in September. On a yearly basis, producer prices in October decreased by 9.4%, indicating a decline from the 12.4% drop the previous month. Excluding energy prices, producer prices exhibited a monthly decrease of 0.2% in October, with a corresponding year-on-year decline of 0.2%.

According to data from the U.S. Department of Labor, the number of job openings in the United States decreased in October. The number of job openings in October was 8.73 million, down from 9.35 million in September and 10.47 million in October 2022.The 6M Euribor decreased with 5 basis points to 3.95% compared to previous business day.

The 10Y Swap decreased with 10 basis points to 2.73% 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 price of gold reached a record high hitting $2135 per troy ounce, largely influenced by a weakening dollar. The ongoing rise in gold prices is attributed to speculation that the U.S. Federal Reserve might begin lowering interest rates in the coming months, based upon statements by Chairman Jerome Powell. The upcoming U.S. jobs report on Friday will have an impact on the Fed’s interest rate decisions.

In October, German exports declined slightly, but due to a more significant drop in imports, the trade surplus increased. This was revealed on Monday by the German statistical office Destatis. On a yearly basis, exports decreased by 8.1 percent, while imports saw a more substantial decline of 16.3 percent.

A large number of intensive livestock farmers in the Netherlands are actively seeking government subsidies to cease their farming operations. About 24% of Dutch pig farmers express a desire to discontinue their businesses, with government support. Minister Christianne van der Wal expresses satisfaction with farmer engagement in the voluntary cessation programs, emphasizing that any reduction in nitrogen emissions is beneficial. She commits to increasing the budget if needed to support the farm buyout programs, aimed at addressing the ongoing nitrogen crisis.’

The 6M Euribor decreased with 3 basis points to 4.00% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.83% 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.