Final figures published by Eurostat indicated a significant decline in Eurozone inflation in October. Consumer prices rose by 2.9% annually, down from September’s 4.3%. Core inflation, excluding volatile energy and food prices, was 4.2% in October, a crucial measure for the ECB.
In October 2023, producer prices dropped by 11.0% compared to the same period last year, with a marginal 0.1% decrease from the previous month. September saw a historic decline of 14.7%, mainly due to the peak in 2022 caused by the Ukraine war.
The US reported a 1.1% increase in building permits to 1.481 million in October, contrary to the anticipated 1.6% decline. Simultaneously, housing starts also rose according to government data, surprising with growth in both permits and construction activity.
The 6M Euribor decreased with 1 basis point to 4.07% compared to previous business day. The 10Y Swap is unchanged at 3.08% 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, U.S. import prices experienced a more significant decline than initially anticipated, primarily due to considerably lower energy import prices, according to data released by the U.S. Department of Labor on Thursday. Import prices showed a decrease of 0.8% on a monthly basis, following a 0.4% increase in the previous month. Initially, a price increase of 0.1% was reported for September. Analysts had originally expected a decline of 0.3% in October.
On an annual basis, construction revenue increased in the Netherlands in the third quarter, despite a decrease in the number of issued building permits. This was reported by Statistics Netherlands (CBS) on Thursday. The revenue showed a growth of 6.4% in the third quarter compared to the same period a year earlier.
On Thursday, the oil price dropped significantly, with a barrel of West Texas Intermediate declining 5% at a settlement of $72.90. A day earlier, on Wednesday, WTI already declined after it was revealed that U.S. oil inventories had increased by 17.5 million barrels in the past two weeks.
The 6M Euribor decreased with 2 basis points to 4.08% compared to previous business day. The 10Y Swap decreased with 4 basis points to 3.08% 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 People’s Bank of China (PBOC) has announced that it will maintain the interest rate on its medium-term loans of €184 billion at 2.50%, resulting in a net injection of €76.2 billion into the banking system because of the expiration of loans amounting to €108 billion later this week. This marks the largest support measure in over six years, responding to ongoing economic challenges, particularly in the real estate sector. Despite positive indicators such as industrial production, concerns persist about the real estate market. China is also considering providing €127 billion in cheap loans for the struggling real estate sector. China aims for a growth target of 5% for the year despite global economic challenges, and potential policy changes are anticipated at the upcoming Communist Party top meeting.
In October, consumer prices in the United Kingdom rose less sharply than the previous month and slightly below economists’ expectations, according to data from the Office for National Statistics (ONS). On a yearly basis, prices increased by 4.6%, slightly below the anticipated 4.7%, compared to a 6.7% rise in the previous month. Month-on-month, prices remained stable after a 0.5% increase in September.
In September, exports in the eurozone experienced a significant decline, while imports fell even more sharply, according to data from Eurostat on Wednesday. Adjusted for calendar effects, exports decreased by 9.3% on a yearly basis, while imports dropped by 23.9%. As a result, there was a trade surplus of 10 billion euros, compared to a deficit of 36.6 billion euros in September 2022.
The 6M Euribor increased with 1 basis point to 4.10% compared to previous business day. The 10Y Swap increased with 4 basis points to 3.12% 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.
Figures from the US Department of Labor showed on Tuesday that consumer prices in the United States have increased less than expected. On an annual basis, consumer prices rose 3.2% last month while economists expected an inflation level of 3.3%. A month earlier, prices rose by 3.7% on an annual basis. Core inflation stood at 4.0% in October. The figure was positively received on stock and bond markets.
The figure that measures German economic sentiment, the ZEW index, rose in November and is currently above 0 again. This was evident from figures from the German ZEW institute on Tuesday. The index rose from -1.1 to a value of 9.8. The market expected an index figure of 5.0.
After three quarters of growth, the Japanese economy shrank in the third quarter of this year, according to final figures published on Wednesday by the Japanese government. On a quarterly basis, the economy shrank by 0.5% after growing 1.1% in the second quarter. On an annual basis, Japan’s gross domestic product contracted by 2.1% in the third quarter.
The 6M Euribor increased with 2 basis points to 4.09% compared to previous business day. The 10Y Swap decreased with 10 basis points to 3.08% 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.
Equity markets in Europe ended higher yesterday. The AEX closed 0.95% higher at 753.410. Furthermore, the Stoxx Europe 600 closed at 446.62, the German DAX at 15,345.00, the French CAC 40 7,087.06 and the British FTSE closed at 7,425.83 points. These are gains of 0.8%, 0.7%, 0.6% and 0.9% from the previous trading day, respectively.
Most stock markets in Asia opened mostly higher today. Investors are somewhat cautious as new talks between the U.S. and China are scheduled for tomorrow. On Wednesday, Joe Biden and Xi Jinping will meet for the first time in a year. Furthermore, investors are still awaiting a U.S. inflation figure. Japan’s Nikkei 225 opened this morning at 32,726.19 the Shanghai Stock Exchange opened at 3,049.72 and the Hong Kong Stock Exchange opened at 17,400.11, this corresponds to an increase of 0.4%, an increase of 0.1% and a decrease of 0.15, respectively.
Oil prices rose again yesterday. The price of a barrel of West Texas Intermediate increased 1.4% at $78.26. The increase was caused by OPEC revising its expectations for global oil demand this year. Oil demand is expected to increase by 2.5 million barrels per day. The 2024 demand forecast remained unchanged at an increase of 2.2 million barrels per day.
The 6M Euribor increased with 1 basis point to 4.07% compared to previous business day. The 10Y Swap decreased with 1 basis point to 3.18% 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 of this year, both the economy and production in the United Kingdom remained unchanged compared to the previous quarter. Economists had anticipated a contraction of 0.1% for the overall economy. Additionally, production figures were revised slightly upward because of revised data for the month of October.
In September, according to the UK Office for National Statistics (ONS), British goods exports and imports declined. The export value decreased by 2.9% on a monthly basis, while imports decreased by 6.2%. As a result, the trade deficit for the three-month period ending in September decreased from £7.1 billion to £6.0 billion.
Moody’s has changed the outlook for the credit rating of the United States from stable to negative due to rising interest rates and doubts about the ability of the U.S. government to implement effective fiscal policies. A negative outlook implies a possible downgrade of the credit rating for ths U.S. Currently, the United States holds a ‘Triple A’ status with Moody’s, Fitch Ratings downgraded the U.S. credit rating from AAA to AA+ in August. S&P downgraded the AAA rating in 2011 following an earlier budgetary discussion and has since maintained an AA+ rating.
The 6M Euribor decreased with 1 basis point to 4.06% compared to previous business day. The 10Y Swap increased with 5 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.
Oil prices rose slightly on Thursday, although the big gains from the middle of the day were largely lost towards the end of the trading day. Ultimately, a barrel of West Texas Intermediate increased in price by about 0.5% on Thursday. On a weekly basis, the oil price is under pressure with a significant loss after both Brent and WTI recorded their lowest points since July on Wednesday. Weak trade prices from China in the beginning of this week put further pressure on oil prices as the data fueled concerns about a drop in demand in one of the world’s largest economies.
Figures published on Friday by Statistics Netherlands showed that the Dutch industry produced significantly less in September on both an annual and monthly basis. Average daily production in September was 10.3% lower on an annual basis, while there was a monthly decrease of 0.9%. Meanwhile, industrial production has been declining for 9 months in a row. Most sectors produced less in September than in the same month a year earlier. Of the major industries, the machinery industry recorded the largest decline in production. The repair and installation of machines saw the largest increase in production.
The number of new applications for unemployment benefits in the United States fell again last week, according to figures published by the US Department of Labor. The number of new applications fell by 3,000 to a total of 217,000. Economists expected 220,000 applications. However, the four-week average rose by 1,500 to 212,150.
The 6M Euribor is unchanged at 4.07% compared to previous business day. The 10Y Swap increased with 3 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.
In October 2023, the inflation rate in Germany, measured as the year-on-year change in the consumer price index (CPI), stood at 3.8%. In September 2023, the inflation rate was 4.5%. The inflation rate continued to decrease and reached its lowest level since August 2021 (also 3.8%). The Federal Statistical Office (Destatis) also reported that consumer prices remained unchanged from September 2023 in October 2023.
The interest rate on the most common U.S. residential mortgage type fell significantly last week, marking the largest drop in almost 16 months. The Mortgage Bankers Association reported that the average rate for a 30-year fixed-rate mortgage decreased by a quarter percentage point to 7.61% in the week ending November 3, the lowest in about a month. This was the most substantial weekly decline since late July 2022. The drop in rates was influenced by the U.S. Treasury’s issuance update, a dovish tone from the Federal Reserve in their November FOMC statement, and signs of a slower job market.
In September, U.S. wholesale inventories showed an upward trend, with a monthly increase of 0.2% following a previous drop of 0.1% in August. However, on an annual basis, inventories displayed a decrease of 1.2%. At the same time, wholesale sales in September exhibited a monthly rise of 2.2% and grew by 0.9% on a yearly basis.
The 6M Euribor is unchanged at 4.07% compared to previous business day. The 10Y Swap decreased with 5 basis points to 3.11% 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.
According to data provided by Eurostat, the European statistics agency, producer prices in the Eurozone showed a monthly increase of 0.5% in September, compared to a rise of 0.7% in August. However, on an annual basis, producer prices still saw a decline of 12.4% in September. This represented a deterioration compared to the annual decrease of 11.5% reported a month earlier.
In September, the United States witnessed an increase in both their exports and imports, as reported by the U.S. government. Exports rose by 2.2% to a value of $261.1 billion, while imports increased by 2.7% to $322.7 billion. These developments resulted in a 4.9% increase in the U.S. trade deficit, reaching a total of $61.5 billion. These figures exceeded expectations at $59.8 billion. Specifically, the deficit with the European Union amounted to $16.8 billion, compared to a deficit with China of $24.1 billion .
On Tuesday, the oil price showed a significant decline, reaching its lowest level in over three months. The drop is attributed to concerns about reduced demand, driven by weak export figures from China. The December future for a barrel of West Texas Intermediate crude oil closed 4.3% lower at $77.37 per barrel on the New York Mercantile Exchange, marking the lowest closing price since July 21st.
The 6M Euribor increased with 1 basis point to 4.07% compared to previous business day. The 10Y Swap decreased with 7 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.
Chinese exports fell more than expected. This was revealed this morning by Chinese government figures. On an annual basis, exports declined by 6.4% in dollar terms, while a decline of 3.5% had been expected. In September, export figures were also down 6.2%. Chinese imports did rise 3% year-on-year, where a 4.8% decline was expected. China’s trade surplus fell nearly $20 billion, from $77.71 billion to $56.53 billion.
Australia’s central bank raised interest rates by 25 basis points. This was reflected in the Reserve Bank of Australia’s interest rate decision earlier today. This brought the key interest rate to 4.35%. Australia’s policy interest rate has been raised by 4 percentage points since May 2022. In a statement, the bank indicated that Australia has peaked, but inflation is still too high. The Australian dollar exchange rate recorded 0.6436 U.S. dollars, down 0.8%.
South Korea’s stock market experienced its biggest one-day rise since March 2020 yesterday. The surge is caused by the announcement of the stock market regulator Financial Services Commission (FSC) that short-selling will be banned until mid-2024. The measure was introduced to restore confidence in equity markets. As a result, the Kospi, the country’s main stock index, rose 5.7%.
The 6M Euribor decreased with 1 basis point to 4.06% compared to previous business day. The 10Y Swap increased with 8 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.
