The US Federal Reserve has decided to leave interest rates unchanged but indicated that an interest increase could follow later. The current range of 5.25% to 5.50%, is maintained with this policy decision.
Both UK and German producer prices fell in August. In Germany, prices fell 12.6% year-on-year, data from Destatis, the German statistics office, showed. This is the steepest decline since 1949, the first year that producer prices were tracked. In the UK, prices fell by 2.3% year-on-year, data from the UK statistics office ONS show.
Figures published by Statistics Netherlands show that investments increased in the Netherlands. In July, investments were up 3.3% on the previous month. In June, investments were up 7.0%.
The 6M Euribor is unchanged at 4.07% compared to previous business day. The 10Y Swap decreased with 3 basis points to 3.23% 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 exports decreased in August for the second month in a row. This was revealed on Wednesday by figures from the Japanese government. Exports decreased by 0.8% year-on-year in August, following a 0.3% percent decrease in July. Japan’s exports increased for more than two years in a row until June of this year. That streak came to an end in July. Japanese imports decreased by 17.8% year-on-year in August.
Inflation in the Eurozone decreased in August. Eurostat figures showed this on Tuesday. An earlier preliminary reading pointed to unchanged inflation from the previous month. Consumer prices increased by 5.2% year-on-year in August. Th price increase was 5.3% in July and 5.5% in June.
The Netherlands provides EUR 39.7 billion to EUR 46.4 billion in tax benefits per year for the use of fossil fuels. This was revealed on Tuesday by the publication of the Dutch budget. About EUR 19.8 billion of these benefits are based upon European agreements and regulations, which means that the next cabinet cannot withdraw these benefits. Part of the European benefits include the exemption from excise tax for the use of oil as a raw material (EUR 14.0 billion) and the exemption from excise tax for international aviation for kerosene consumption (EUR 2.2 billion).
The 6M Euribor increased with 1 basis point to 4.07% compared to previous business day. The 10Y Swap increased with 2 basis points to 3.26% 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, the confidence among American home builders has once again significantly decreased, similar to the trend observed a month earlier. This was revealed on Monday by data from the National Association of Home Builders. The NAHB Housing Market Index dropped from 50 in August to 45 this month. This signifies that the sales conditions are considered negative. The index recorded a value below 50 for the first time in five months.
For the fourth consecutive day, oil prices have risen, reaching their highest level in nearly ten months on Tuesday. Currently, a barrel of Brent crude oil is trading at over USD 95, which is 0.7% higher than the previous day. The increase in oil prices is primarily attributed to production constraints imposed by major oil-producing countries like Saudi Arabia and Russia. Since the announcement of these limitations in June, prices have surged by more than 30%.
A substantial majority in the Dutch House of Representatives intends to scrap the planned fuel tax increase as of January 1st. This was reported on Monday evening by NOS and RTL Nieuws, based on consultations with parties in the House of Representatives. The excise duties on diesel and petrol are set to rise as of January 1st, and including an inflation adjustment, the pump price per liter could increase by 21 cents.
The 6M Euribor increased with 2 basis points to 4.06% compared to previous business day. The 10Y Swap increased with 3 basis points to 3.24% 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.
After the interest rate decision of the European Central Bank last week, the focus in the upcoming week will shift to the decision of the Federal Reserve, followed by that of the Bank of England. While the ECB raised interest rates last week, the U.S. Central Bank is likely to keep interest rates unchanged this coming Wednesday. The FedWatch Tool shows that the market expectation for an unchanged policy rate is currently 97%.
The oil price continued to rise on Friday. With a settlement at $90.77, a barrel of West Texas Intermediate (WTI) became 0.7% more expensive. On a weekly basis, a barrel of WTI became 3.7% more expensive. Oil prices are trading near their yearly highs as Saudi Arabia and Russia maintain their production cuts to create tightness in the market.
The confidence of American consumers in the economy continued to decline in September 2023, while inflation expectations were also revised downwards. This was revealed on Friday in preliminary figures from the University of Michigan. The consumer confidence index decreased from 69.5 to 67.7.
The 6M Euribor increased with 4 basis points to 4.04% compared to previous business day. The 10Y Swap increased with 7 basis points to 3.21% 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) has announced a quarter-point increase in interest rates, bringing the key deposit rate to 4%, in response to persistent inflation issues in the eurozone, where inflation has dropped from over 10% in October 2022 to 5.3%. While this rate hike was somewhat expected, ECB President Christine Lagarde emphasized that it is too early to say whether rates have peaked and that future changes will depend on evolving circumstances. The ECB has also lowered its economic growth forecasts, predicting 0.7% growth this year and 1.0% next year in the eurozone. In contrast, inflation forecasts for 2023 and 2024 have been revised upward. This marks the tenth interest rate increase in this cycle.
Machine orders in Japan continued to rise in July, as reported by government data on Thursday. Seasonally adjusted, machine orders increased by 9.8% month-on-month, following a slight 0.2% rise in June. However, in the private sector, excluding volatile orders, machine orders declined by 1.1% in July, contrasting with a 2.7% increase in June.
In August, producer prices in the United States rose more than expected, with a monthly increase of 0.7%, while economists expected a rise of 0.4%. Excluding the impact of volatile trade, food, and energy prices there was a 0.3% increase in August, in line with July. On an annual basis, the increase in producer prices in August rose to 1.6%, compared to 0.8% a month earlier. Core prices in August saw a 3.0% increase, compared to the 2.9% rise in July. The 6M Euribor increased with 3 basis points to 4.00% compared to previous business day. The 10Y Swap decreased with 5 basis points to 3.14% 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 ECB is facing a critical decision regarding its possible tenth consecutive interest rate increase. This afternoon, the ECB will decide upon its monetary policy. The revised projections for the Eurozone economy extending through 2025 will be most relevant for the ECB to decide whether it will increase official rates.
According to data from the US Department of Labour, consumer prices in the United States increased more in August than in July. Consumer prices rose 3.7% last month from the same period last year, compared with a 3.2% increase in July. As for core inflation, which excludes food and energy prices, inflation was 4.3% year-on-year in August, compared with 4.7% in the previous month.
Based on data from Eurostat, industrial production in the eurozone fell in July. In July, output fell by 1.1% compared to June, in which it had still increased by 0.4%. Economists had expected output to contract by 0.8% in July.
The 6M Euribor is unchanged at 3.97% compared to previous business day. The 10Y Swap decreased with 1 basis point to 3.19% 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 August. This was revealed on Tuesday by figures from Spain’s statistical office. On a yearly basis, consumer prices increased by 2.6% in August, up from 2.3% in July. Core inflation decreased to 6.1% in August from 6.2% in July, also on a yearly basis.
British unemployment increased in the second quarter of 2023. This was revealed on Tuesday by figures from the British Office for National Statistics ONS. During this period, seasonally adjusted unemployment increased to 4.3%. With this, unemployment was 0.5 percentage points higher compared to the first quarter of 2023 and 0.3 percentage points higher than before the outbreak of the corona crisis.
The number of bankruptcies in the Netherlands increased in August. This was revealed on Tuesday by figures from Statistics Netherlands. The number of bankruptcies increased by 5% on a monthly basis. With that, the number of bankruptcies increased for 16 months in a row.
The 6M Euribor increased with 2 basis points to 3.97% compared to previous business day. The 10Y Swap increased with 1 basis point to 3.20% 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 Monday, the oil price experienced a slight decline. With a settlement at USD 87.29, a barrel of West Texas Intermediate declined 0.3%. Oil prices had risen by over 2 percent last week and by about 10% in the past two weeks, following Saudi Arabia’s announcement that it would extend a production cut of 1 million barrels per day until the end of the year, while Russia also extended its production cuts.
In August, Dutch inflation decreased to 3.0%, as indicated by the final figures released by Statistics Netherlands on Tuesday. Consumer prices had risen by 4.6% on an annual basis in July, whereas in June, this figure was still at 5.7%.
On Monday, the European Commission revised down its economic outlook for the Eurozone, primarily due to the anticipated contraction of the German economy. For this year, Brussels now anticipates a growth rate of 0.8%, whereas the expectation in May was for a growth rate of 1.1%. The forecasts for next year have been scaled back to 1.3%, compared to the Commission’s earlier projection of a 1.6% increase in the spring.
The 6M Euribor increased with 1 basis point to 3.95% compared to previous business day. The 10Y Swap increased with 3 basis points to 3.19% 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 recent UK renewable energy auction failed to attract bids for an offshore wind farm. Last year, the UK’s annual renewable energy auction secured 11 gigawatts of projects, primarily offshore wind farms. However, this year’s auction yielded only 3.7 gigawatts, with no offshore wind projects, due to rising construction costs caused by inflation, increasing interest rates, and disruptions in the supply chain. Te failure to attract bids underscores the challenge of balancing renewable energy goals with realistic costs. Companies globally are facing project reconsiderations due to increased costs, urging the need for pricing adjustments in auctions.
In an unexpected turn of events, French industrial production saw a rise in July, as reported by the French statistical agency Insee. Production increased by 0.8% on a month-to-month basis, contrary to economists’ expectations of a 0.1% decline. In June, production experienced a 0.9% decrease. The manufacturing sector witnessed a production increase of 0.7% in July, following a 1.1% contraction in June.
According to final data from the German statistical office Destatis, German inflation in August decreased in line with previous estimates. The inflation rate stood at 6.1% on a year-on-year basis in August, down from 6.2% in July and 6.4% in June. Prices increased by 0.3% in August compared to July.
The 6M Euribor increased with 1 basis point to 3.94% compared to previous business day. The 10Y Swap is unchanged at 3.16% 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.
Labor costs in the United States increased more than expected in the second quarter of this year. This was revealed on Thursday by the US Bureau of Labor Statistics. Labor costs in the US increased by 2.2% on a quarterly basis in the second quarter. Earlier readings showed a 1.6% quarterly increase. Hourly wages increase by 5.7% quarter-on-quarter and labor productivity increase by 3.5% quarter-on-quarter in the second quarter.
The Eurozone economy grew less than expected in the second quarter. This was revealed on Thursday by final figures from Eurostat. In the second quarter, the gross domestic product of the European economy increased by 0.1% versus the first quarter. Previously growth figures of 0.3% were reported for the second quarter. On an annual basis, the Eurozone economy grew by 0.5%.
The Dutch industry produced less in July than in the previous month. This was revealed on Friday by Statistics Netherlands. The average daily output of the Dutch industry in July was 8.3% lower than in July 2022. Production of the Dutch industry has been falling for seven months in a row. On a monthly basis, production decreasing by 0.6% in July.
The 6M Euribor decreased with 1 basis point to 3.93% compared to previous business day. The 10Y Swap decreased with 4 basis points to 3.16% 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.
