The Dutch economy is performing slightly better than one month earlier. Statistics Netherlands reported this on Wednesday. According to the Economic Timetable of the CBS, 11 of the 13 indicators have now outperformed the long-term trend. In July, 9 indicators outperformed.
The Chinese services sector has seen growth slowing down, while the decline of the industrial sector decreased. This was revealed on Wednesday by figures from the Chinese government. The purchasing managers index for the service sector was 52.6 in August against 53.8 in July. The purchasing managers index for Chinese industry showed Wednesday an increase from 49.0 in July to 49.4 in August. The expectation of economists was 49.2. Markit Economics’ figures for Chinese manufacturing in August are scheduled for Thursday morning.
American consumer confidence has improved in August after three months of decline. This appeared Tuesday from figures of The Conference Board. The index for consumer confidence rose from 95.3 to 103.2. This was much better than the 97.4 predicted by economists. The sub-index for economic expectations for the next six months rose from 65.6 to 75.1. The partial index for the current situation went from 139.7 to 145.4 in August. Concerns about inflation remain high, but have eased somewhat, according to The Conference Board.
The 6M Euribor increased with 10 basis points to 1.08% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.40% 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.
Ukraine’s agriculture minister announced Monday that Ukrainian agricultural exports are expected to reach 6 million tonnes in October, double the exports of July. Ukraine is one of the largest exporters in grain and vegetable oil, but exports virtually came to a halt earlier this year following Russia’s invasion of Ukraine. In 2021, Ukraine’s agricultural exports set a record at 86 million tonnes, but they are not expected to exceed 50 million tonnes in 2022.
After rising by nearly 40% last week, the gas price for a megawatt-hour fell by more than 20% yesterday at the start of the day, to a price of EUR 270 on the Amsterdam stock exchange. This drop came as a result of Germany’s announcement that it is filling gas reserves faster than expected.
The confidence index among Dutch entrepreneurs in the manufacturing industry fell to 4.6 in August while in July the index stood at 8.4, according to figures published by Statistics Netherlands. The decline in producer confidence was visible in almost every sector in August, with the exception of the food and beverage industry.
The 6M Euribor is unchanged at 0.98% compared to previous business day. The 10Y Swap increased with 12 basis points to 2.42% 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 coming week, as the corporate results season dries up, investors will pay particular attention to new inflation figures, purchasing managers and a US jobs report. On Tuesday Statistics Netherlands will publish the latest producer confidence figures. Furthermore, inflation figures from Germany and Belgium will be published, followed a day later by France and the eurozone as a whole.
The average WOZ value of a house increased again. The average house in the Netherlands was worth EUR 315,000 on 1 January 2022, an increase of 8.6% compared to a year earlier, according to Statistics Netherlands. This is the highest value ever. Last year, the average WOZ value increased by 7,0%. The average WOZ value of a private house has been considerably higher for some time now. However, when calculating the WOZ value, rental homes and unsold properties are also included.
European central bankers are considering to increase the official interest rates to curb the high inflation rate, according to President Knot of the Dutch Central Bank in an interview with the Dutch public broadcasting company NOS. “The inflation problem in Europe is so persistent at the moment that I think our task is to raise the interest rate every six weeks until the inflation picture stabilises around 2%”, said Knot. Eurozone inflation averaged 9.8% in July, partly due to sharply higher energy prices.
The 6M Euribor increased with 3 basis points to 0.98% compared to previous business day. The 10Y Swap increased with 11 basis points to 2.30% 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 US economy contracted in the second quarter of this year, but less than initially estimated, as reported on on Thursday by a second estimate from the US Department of Commerce. Gross domestic product fell by 0.6% in the second quarter calculated on an annual basis. The first estimate was a contraction of 0.9%.
On Thursday, the gas price rose to above EUR 300 per megawatt hour. This means that gas is now more than 17 times as expensive as it was a year ago. Yesterday the price closed at EUR 292, the highest closing level ever.
The Swedish government has instructed its national planning office to check whether price increases in different economic sectors are not unduly high. The Swedes are struggling with 8% inflation, and Minister Damberg of Finance does not want companies to abuse that, he reported to Bloomberg news agency. The Konjunkturinstitutet noted earlier in the year that Swedish companies are more profitable this year than the average since the beginning of the century.
The 6M Euribor increased with 2 basis points to 0.95% compared to previous business day. The 10Y Swap decreased with 8 basis points to 2.19% 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 German economy grew in the second quarter, according to final figures from Destatis, the German statistical office. On a quarterly basis, growth was 0.1%. Initially zero growth was reported. On an annual basis, the gross domestic product increased by 1.7%.
The euro was relatively stable at around 0.9950 on Wednesday, after macroeconomic data in the United States disappointed, which held the increase of the US dollar. Demand for the US dollar remained strong due to the need for safety in the currency market. The Euro was also down 0.1% at 0.8417 GBP.
Crude oil stocks in the United States fell last week. This was shown on Wednesday by figures from the energy agency EIA. In the week ending 19 August, crude oil stocks decreased by 3.3 million barrels to 421.7 million. Gasoline stocks decreased fractionally to 215.6 million barrels. Fuel oil and diesel stocks decreased by 0.7 million barrels to 111.6 million. The capacity utilisation rate of refineries was 93.8%. This was 93.5% a week earlier.
The 6M Euribor increased with 2 basis points to 0.93% compared to previous business day. The 10Y Swap increased with 8 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 Eurozone economy contracted further in August, although the contraction was less severe than feared. This was revealed by preliminary figures from Markit on Tuesday. The purchasing managers index for the service sector was 50.2 in August against 51.2 in July. The expectation was 50.5. The purchasing managers index for industry appeared in the preliminary measurement decreased from 49.8 in July to 49.7 in August. Economists expected a decrease to 49.0. The composite index thus decreased from 49.9 to 49.2, the lowest reading in 18 months. Previously, an index of 49.0 was expected. An index reading greater than 50 indicates growth, while less than 50 means contraction.
The economic activity in the service sector in the United States shrank further in August, while industry grew less fast. This was evident from preliminary figures from S&P Global on Tuesday. The preliminary purchasing managers index for the service sector decreased from 47.3 to 44.1, and thus to the lowest level in 27 months. The purchasing managers index for industry deteriorated from 52.2 to 51.3, also the lowest level in over two years. The composite purchasing managers’ index came to 45.0, from 47.7 a month earlier, and this level was also last reached more than two years ago. With the exception of the corona period between March and May in 2020, economic output has not declined that much since S&P Global has been tracking this data, economist Chris Williamson said in a note.
Consumer confidence in the Eurozone improved in August. This appeared Tuesday from preliminary figures from the European Commission. The index, which reflects the confidence, increased from a historic low of -27.0 in July to 24.9 negative this month.
The 6M Euribor increased with 5 basis points to 0.91% compared to previous business day. The 10Y Swap increased with 3 basis points to 2.19% 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 price of oil continued to fall on Monday, ending at a price of USD 90.23 for a barrel of West Texas Intermediate. Ongoing concerns about a possible recession continue to put pressure on oil prices. At the same time, gas prices are rising and the European gas price has increased by over 9%. The increase in gas prices is largely explained by the announcement of maintenance on the Nord Stream 1 pipeline which is expected to shut down for three days.
The Moscow Exchange has announced that as of August 29th it will prohibit the use of the US Dollar as collateral. With this, Russia wants to reduce its dependency on currencies from countries that have imposed sanctions on Russia.
The rise in house prices in the Netherlands continued to level off in July. Research by Statistics Netherlands shows that in July, homes were 14.5% more expensive compared to a year earlier, while in June the price increase was 16.6% compared to a year earlier. The number of homes purchased is also declining. Since the beginning of 2022, almost 110,000 homes have been sold, which is more than 20% less than in the same period in 2021.
The 6M Euribor increased with 3 basis points to 0.86% compared to previous business day. The 10Y Swap increased with 12 basis points to 2.16% 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.
The Federal Reserve needs to keep raising borrowing costs to bring high inflation under control, according to U.S. central bank officials. St. Louis Fed President James Bullard, who was among the central bank’s earliest advocates last year of a stronger response to fast-building price pressures, said that given the strength of the economy he is currently leaning toward supporting a third straight 75-basis-point interest rate hike.
Purchasing power in the Netherlands declined substantially due to rising inflation, according to new figures published by the Central Planning Bureau (CPB). An average household loses 6.8% of purchasing power this year, the highest percentage in decades.
More than 1,900 workers at Britain’s biggest container port will strike this week. Their union and shipping companies warn that this could seriously affect trade and supply chains. The staff at Felixstowe are in a dispute over pay, as their union demands higher wages for members facing a cost-of-living crisis due to high inflation.
The 6M Euribor increased with 8 basis points to 0.83% compared to previous business day. The 10Y Swap increased with 13 basis points to 2.04% 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 Thursday, the Turkish central bank announced that it cuts its key rate by 100 basis points from 14% to 13%, despite rising inflation. The key rate was expected to remain unchanged. Inflation rose to 79.6% last month and is at its highest level since two decades, caused by abrupt and uncontrolled declines in the Turkish lira exchange rate, followed by sharp increases in natural gas and electricity prices and soaring commodity prices due to the war in Ukraine.
The Bank of England set out plans on Thursday to auction off around GBP 200 million (USD 241 million) of corporate bonds a week from next month, as it moves ahead with its plans to unwind its huge stimulus push of recent years. The BoE bought nearly GBP 20 billion of investment-grade bonds from non-financial companies under its quantitative easing programme to support the economy and stabilise financial markets after the 2016 Brexit referendum and in the COVID-19 pandemic. The bond-buying programme has made the BoE much more exposed to rises in interest rates.
Existing home sales in the United States fell in July, according to figures published on Thursday by real estate organization NAR. On a monthly basis sales declined 5.9% to 4.8 million homes, which was in line with expectations.
The 6M Euribor increased with 1 basis point to 0.75% compared to previous business day. The 10Y Swap increased with 2 basis points to 1.91% 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) said on Wednesday it would harmonise how banks offer cryptoassets, to ensure the bankss have enough capital and expertise in a sector some European Union lawmakers have described as the Wild West. Several crypto companies like Binance and Crypto.com have been authorised in EU countries such as Italy, France, Spain, Greece or Germany after complying with national safeguards to combat money laundering and terrorist financing.
China’s economic growth slowed slightly in the January-July period to 3.2% compared to the first six months of the year at 3.35, according to data reported by the finance ministry on Wednesday, as the economy was squeezed by the country’s zero-COVID policy and a property crisis.
Eurozone economic growth was slightly less robust in the second quarter than forecast but still strong, and employment rose again, revised data from the European statistics office showed on Wednesday. Eurostat said gross domestic product in the 19 countries using the euro rose 0.6% quarter-on-quarter in April-June for a 3.9% year-on-year rise. The office had previously estimated the quarterly growth at 0.7% and the year-on-year rise at 4.0%.
The 6M Euribor decreased with 1 basis point to 0.74% compared to previous business day. The 10Y Swap increased with 11 basis points to 1.89% 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 prices in the United Kingdom increased slightly more in July. This was shown on Wednesday by figures from the ONS statistical office. Prices increased by 10.1% year on year. A month earlier this was 9.4%. Economists expected an increase of 9.8% in July. On a monthly basis, prices increased by 0.6%, after an increase of 0.8% in June. The Bank of England still aims for an inflation rate of 2.0%.
Industrial production in the United States increased in July, thanks to strong production by the automotive industry, despite rising producer prices and supply chain disruptions. This was reported by the Federal Reserve on Tuesday. Industrial production, including the output of factories, mining and utilities, increased by 0.6% in July, compared with a month earlier. A growth rate of 0.3% had been expected beforehand, after a flat level in June. Earlier, a contraction of 0.2% had been reported for June. On an annual basis, growth was 3.9%. The automotive industry did relatively well. The production of motor vehicles and parts increased with 6.6%, after decreases in previous months. The rest of the manufacturing industry increased with 0.3%.
The Dutch labour market is historically tight. In the first quarter of 2021 there were still 56 vacancies per 100 unemployed. A year later it was 133 per 100 unemployed. In the second quarter, the pressure increased further. In April, May and June, 16,000 new vacancies were created and the average number of unemployed fell again, according to CBS figures. The record for vacancies and jobs was thus broken again. According to a third of the entrepreneurs, the shortage of personnel causes an increased work pressure among their employees. Especially in the sectors culture, sports and recreation, transport and storage, catering and trade, entrepreneurs experience extra work pressure, although this has an effect on all sectors.
The 6M Euribor decreased with 2 basis points to 0.75% compared to previous business day. The 10Y Swap increased with 5 basis points to 1.78% 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 ongoing drought in Europe has caused the price of gas for a megawatt-hour to rise past the EUR 215 price yesterday and seems to be continuing to rise. The price is even higher than the peak that took place in March after Russia’s invasion of Ukraine. The drought is causing, among other things, low water levels that make it impossible to supply the coal-fired power plants in Germany. In addition, the nuclear power plants in France have the problem that the warm water makes it difficult to cool their plants, so that they have to work at lower capacity.
Figures published by the National Association of Home Builders show that confidence among American home builders in the United States fell even further in August. This is because sales conditions are considered negative. The housing index in the United States reached its lowest point in more than 2 years in August.
The oil price for a barrel of WTI fell 3% on Monday to a price of USD 89.41. In addition to disappointing economic data from the United States and continued weak data from China, the expectation is that the Iranian nuclear deal is going to bring more oil to the market. As we move towards the end of the summer, the demand for oil will continue to increase and the pressure on the Iranian nuclear deal will increase further to meet demand.
The 6M Euribor increased with 1 basis point to 0.77% compared to previous business day. The 10Y Swap decreased with 9 basis points to 1.73% 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 Japanese economy grew 2.2% in the second quarter of this year compared to the same period a year earlier, according to figures published by the Japanese government. The gross domestic product was also 0.5% higher than the first quarter. In that quarter, the economy grew by 0.1% according to a revised figure. This means that the Japanese economy has now grown for three quarters in a row.
In July, American import prices decreased more than expected, according to figures published by the U.S. Department of Labor last Friday. Import prices fell 1.4% on monthly basis, after an increase of 0.3% in June. A decrease of 1.0% was expected. Import prices of fuel fell 7.5% in July, after a 6.2% increase in the previous month. Export prices fell 3.3% month-on-month in July, after rising 0.7% the previous month. On an annual basis, import prices were 8.8% higher and export prices 13.1% higher in July.
China’s central bank on Monday cut its interbank rate, known as the Loan Prime Rate (LPR), to support the Chinese economy. The LPR was lowered by 10 basis points to 2.75% for some banks. China is struggling with the economic consequences of lockdowns, rising commodity prices and a property crisis. A forthcoming re-election of leader Xi Jinping may also have played a role in the decision making, according to market followers. This morning, figures showed that China’s industrial production and retail sales still showed growth in July, but that is not enough to curb unemployment, among other things.
The 6M Euribor decreased with 1 basis point to 0.76% compared to previous business day. The 10Y Swap decreased with 1 basis point to 1.82% 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 key measure of US producer prices unexpectedly fell in July for the first time in more than two years, largely reflecting a drop in energy costs and representing a welcome moderation in inflationary pressures. The producer price index decreased 0.5% from a month earlier, Labor Department data showed Thursday.
Mortgage rates in the United States climbed above 5% again, after dipping below that threshold for the first time in months a week earlier. While the volatility in mortgage rates remains, the housing market is starting to stabilize.
Crude oil prices are on the rise again as rising European gas prices are shifting consumption patterns to cheaper alternatives. A looming gas crisis in Europe is already driving substantial gas-to-oil replacement demand, the IEA said on Thursday.
The 6M Euribor increased with 3 basis points to 0.77% compared to previous business day. The 10Y Swap increased with 7 basis points to 1.83% 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.
British consumer energy debt is already at an all-time high, a survey showed on Wednesday, with six million households owing cash to providers even before bills leap in October and again in January. Britain is bracing for already high energy bills to more than triple this year, with charities warning that millions of people could be forced into poverty if the government does not launch a multi-billion pound support package to soften the blow.
U.S. consumer prices were unchanged in July due to a sharp drop in the cost of gasoline, delivering the first notable sign of relief for weary Americans who have watched inflation climb over the past two years. The Consumer Price Index (CPI) was flat last month after advancing 1.3% in June, the Labor Department said on Wednesday in a closely watched report that could allow the Federal Reserve to dial down the size of interest rate hikes in September.
China’s producer inflation eased in July to a 17-month low, defying global cost pressures as slower domestic construction weighed on raw material demand, although consumer price increases hit a two-year high as pork supplies tightened. The producer price index (PPI) rose 4.2% year-on-year, the National Bureau of Statistics (NBS) said on Wednesday, versus an uptick of 6.1% in June and analysts’ median forecast of 4.8%.
The 6M Euribor increased with 1 basis point to 0.74% compared to previous business day. The 10Y Swap decreased with 3 basis points to 1.76% 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 prices in China increased slightly in July, according to figures from the Chinese statistical office published today. On an annual basis, prices rose by 2.7%, after a plus of 2.5% in June and 2.1% in May and April. For July, economists expected an increase of 2.9%. On a monthly basis, consumer prices increased 0.5% in July, after a pause in June.
The average daily output of Dutch manufacturing industry increased again in June, but less than in May, according to figures from the Central Bureau of Statistics published today. Production increased in June by 6.2% on annual basis, lower than in previous months. In May, the production increased by 9.9% and in April even by 13.8%.
Dutch listed companies and businesses fear a decrease in consumer spending due to high energy and food prices taking a substantial bite out of their disposable income. As a result, many companies are postponing investments and introducing cheaper products.
The 6M Euribor increased with 5 basis points to 0.73% compared to previous business day. The 10Y Swap increased with 3 basis points to 1.79% 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 Ukrainian Embassy in Lebanon announced on Monday that the first cargo ship carrying corn from Ukraine was refused by the buyer in Lebanon due to a 5-month delay in the delivery. It was the first cargo ship to be able to depart from Ukraine via the Black Sea since Russia’s invasion. The ship is carrying over 26500 tons of corn and is currently looking for a new destination. A smaller cargo ship carrying corn was able to reach its final destination in Turkey on Monday, making it the first cargo ship to complete its journey from Ukraine in a long time.
As a result of the drought in the Nordic countries this spring, the Minister of Energy of Norway has announced that the energy exports from Norway will be limited. Replenishing reservoirs is the priority over energy production. The country is one of the largest exporters of energy in Europe, exporting almost 20% of the energy they produce.
After falling 10% last week, the price of oil rebounded on Monday to a price of USD 90.76 for a barrel of WTI. Despite the rise, negative sentiment remains due to ongoing concerns of a global recession and weak oil demand. If a deal follows from the resumed talks on a possible nuclear deal with Iran, the oil price will come under even more pressure.
The 6M Euribor decreased with 1 basis point to 0.68% compared to previous business day. The 10Y Swap decreased with 4 basis points to 1.76% 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.
Japan ran a current account deficit for the first time in five months in June as surging imports dominated exports, highlighting the strain that higher energy and raw material prices are having on the economy. The deficit is approximately 132.4 billion yen ($980 million). While yen weakness has inflated the cost of imports, its boost to the value of exports has not been as promising as it once was.
Chinese exports grew unexpectedly in July. Exports increased by 18% compared to the same month a year earlier, according to Chinese customs. That is slightly more than the 17.9% growth that occurred in June and well above the 15% analysts had expected. Domestic spending is under pressure due to strict covid measures and the real estate market is in a deep crisis.
Positive job data increases the likelihood that the US Federal Reserve will raise interest rates sharply in September. In July, 528,000 new jobs arised in the United States. Unemployment is back to pre-coronavirus levels. The strong job growth is expected to strengthen the central bank’s view that the US economy can take a beating and can also withstand additional interest rate hikes.
The 6M Euribor increased with 2 basis points to 0.69% compared to previous business day. The 10Y Swap increased with 17 basis points to 1.80% 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 Bank of England (BoE) raised its policy rate again yesterday. The central bank raised the interest rate by 50 basis points from 1.25% to 1.75%. This is the BoE’s 6th interest rate increase since December 2021, but so far it has always raised rates by 0.25%. With the 50 basis point increase, the central bank is taking the biggest step in more than 25 years. The central bank is trying to send the signal that it is trying to fight inflation further.
The inflation rate in the Netherlands in July was 10.3%. This was shown Thursday by figures from Statistics Netherlands. The inflation rate is higher than in previous months. In June and May the annual inflation rate was 8.6% and 8.8% respectively. Due to a sharp rise in energy prices, there was an increase in inflation last month. On an annual basis, energy prices were 108% higher in July, compared to a price increase of 84% in June. As of July 1, 2022, VAT on energy has been temporarily reduced from 21 percent to 9 percent. This reduction will last until December 31, 2022.
The price of oil has fallen again. The closing price of a barrel of West Texas Intermediate (WTI) was 2.0% lower at the end of the day on Thursday than at the beginning of the day. The price of a barrel of WTI is now USD 88.54, the lowest price is 6 months. Analysts attribute the decline to monetary tightening by central banks worldwide. In addition, demand for gasoline has plummeted worldwide. In July 2022, it was lower than every other month of July in the past 25 years (except July 2020).
The 6M Euribor increased with 2 basis points to 0.67% compared to previous business day. The 10Y Swap decreased with 6 basis points to 1.63% 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.
Major developed and emerging market central banks around the globe delivered nearly 1,200 basis points in interest rate hikes in July alone, ramping up their fight against high inflation with Canada surprising markets with an outsized move of 1%. Central banks overseeing five of the 10 most heavily traded currencies delivered 325 basis points of rate hikes last month. This brings the total volume of rate hikes since the start of the year across G10 central banks to 1,100 basis points.
The U.S. services industry unexpectedly picked up in July amid strong order growth, while supply bottlenecks and price pressures eased, supporting views that the economy is not in recession despite output slumping in the first half of the year. The Institute for Supply Management said its non-manufacturing PMI rebounded to a reading of 56.7 last month from 55.3 in June. The increase ended three straight monthly declines.
Business activity in the eurozone contracted slightly in July for the first time since early last year as consumers reined in spending amid increasing cost of living, according to a survey which suggested the outlook for the economy was gloomy. S&P Global’s final composite Purchasing Managers’ Index (PMI), seen as a good gauge of economic health, fell to a 17-month low of 49.9 in July from June’s 52.0, albeit ahead of a preliminary 49.4 estimate.The 6M Euribor is unchanged at 0.65% compared to previous business day. The 10Y Swap increased with 3 basis points to 1.69% 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 number of job vacancies in the United States fell in June, according to figures published by the American Department of Labour on Tuesday. In June, the number of vacancies was around 10.7 million. In May, vacancies were about 11.3 million and in April about 11.7 million. In June 2021, 9.8 million vacancies were reported.
Markets are assuming that the Bank of England will raise interest rates by 50 basis points on Thursday. This would follow the footsteps of the Federal Reserve and the ECB. It would be the first time since the central bank became independent – in 1997 – that such a large increase is made. More details also will be disclosed on plans to actively sell the £ 895bn portfolio of bonds, accumulated during the bond purchase programme.
Growth in the Chinese services sector accelerated in July, according to figures published by Markit today. The purchasing managers index for the services sector came in July to 55.5, against 54.5 in June. However, the purchasing managers index for the Chinese industry decreased on Monday from 51.7 in June to 50.4 in July. The composite index fell from 55.3 to 54.0.
The 6M Euribor is unchanged at 0.65% compared to previous business day. The 10Y Swap increased with 3 basis points to 1.66% 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 EU was 6.0% in June 2022, unchanged versus May 2022. Compared to last year June, the unemployment rate did fall. At that time, an unemployment rate of 7.2% was measured. The unemployment rate in the Eurozone was slightly higher at 6.6% in June 2022.
Yesterday Markit published its figures on industrial activity. It shows that the industry of the Eurozone contracted slightly in July. The purchasing managers index fell from 52.1 in June to 49.8 in July, the lowest reading in 25 months.
For the fourth month in a row, the Australian central bank has raised its policy rate. This morning the bank published the decision to raise interest rates by 50 basis points to 1.85%. The central bank is raising at a rapid pace. Since May, interest rates have been raised by a total of 1.75%. The central bank’s president, Philip Lowe, has previously indicated his intention to raise interest rates to 2.5%.
The 6M Euribor decreased with 1 basis point to 0.65% compared to previous business day. The 10Y Swap decreased with 2 basis points to 1.63% 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 week starts with several purchasing managers’ indices for the industry. On Tuesday, Australia’s central bank will make an interest rate decision and Eurozone producer prices will be presented. On Wednesday, in addition to the purchasing managers’ indices for the services sector, inflation data from Turkey, the German trade balance, retail sales in the eurozone and from America, factory orders are scheduled. Thursday starts with Dutch inflation figures and German factory orders. In the afternoon, the Bank of England is scheduled, and the weekly support requests and a trade balance will come from the US. The week ends with a jobs report from the US.
US consumer confidence in the economy rose in July, after hitting a low in June. This was announced by the University of Michigan. The consumer confidence index improved to 51.5, versus 50.0 in June. The expected figure for July previously indicated a position of 51.1.
In the US young consumers and low-income consumers are beginning to feel the financial pressure. Generation Z consumers and those with low credit scores are starting to fall behind on credit card and auto loan bills and building up credit card debt at a pace not seen since before the pandemic. Credit card balances for people ages 25 and younger rose by 30% in the second quarter from a year earlier, compared with an increase of just 11% among the larger population. This was found during a random sampling of 12.5 million U.S. credit files compiled by credit score company VantageScore.
The 6M Euribor increased with 3 basis points to 0.66% compared to previous business day. The 10Y Swap decreased with 1 basis point to 1.65% 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.
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