Market information Tuesday November 3rd 2015

The British research firm, Markit, published that the European industrial activity in October grew faster than expected. The indicator for the Eurozone increased this month from 52 to 52.3, where previously analysts expected a decrease. A value above 50 indicates growth in the industry, a lower value indicates contraction. The increase is mainly a result of the strong growth of the Italian industry and the slight decrease of the German industrial sector, where a larger decrease was expected. The Dutch industry also performed well, here the indicator rose from 53.0 to 53.7.

Markets expect that due to positive figures on US employment, the Fed will carry out an interest rate increase next month. At the last interest rate meeting in October, the Fed already considered a rate hike in December. Due to the creation of 180,000 new jobs in October and an unemployment rate of 5.1%, markets conclude there is sufficient evidence that the US economy is ready for a rate hike.

Research by the US environmental regulator EPA shows that Volkswagen also rigged some of the heavy diesel engines. According to the EPA it concerns a minimum of 10.000 SUV cars of the model year 2014 which were sold in the US and an unknown number of vehicles of the model year 2016. With this new revelations, the Volkswagen scandal seems to be greater than the maximum of 11 million vehicles which were indicated in September.

The 6M Euribor remained unchanged at 0.01%. The 10Y Swap remained unchanged at 0.93%.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: update@zanders.eu.