Market Information Friday 6 January 2023

Spain is enjoying a record surge in tax revenue that is unmatched by its European peers. The country’s net tax revenues from January to November last year hit their highest level since records began, jumping 15.9% from the same period in 2021 and delivering an extra EUR 33bn to the treasury. The expanded tax haul is especially welcome for Spain given its substantial public debt.

The eurozone’s construction sector is suffering its worst decline since the pandemic brought the economy to a near-standstill in 2020, according to the on Thursday published S&P Global eurozone construction purchasing managers’ index. The index of December showed a total activity index of 42.6, down from 43.6 in November, figures below 50 indicate declining activity. The gloomy findings underline how rising borrowing costs, sharply higher raw material prices and worries that a recession could accelerate a fall in property prices are all weighing in on the European construction industry.

Oil prices closed higher on Thursday, after two days of sharp declines. February futures for a barrel of West Texas Intermediate crude oil closed 1.1% higher at USD 73.67 per barrel on Thursday. The price rise was partly attributed to a stronger-than-expected slowdown in US refinery activity in recent weeks, as extremely cold weather forced some sites in Texas to close. Despite Thursday’s recovery move, oil prices fell more than 8% this week, or nearly USD 7.

The 6M Euribor increased with 2 basis points to 2.76% compared to previous business day. The 10Y Swap increased with 5 basis points to 2.94% 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.