Market information Friday June 19th 2015

US consumer prices increased 0.4% last month, compared to an increase of 0.1% in April. The increase in May was the largest since February 2013. Also, the number of applications for unemployment benefits was the lowest in 15 years. Due to improved economic conditions it is likely that the Fed will raise interest rates the coming months. In addition, the central bank reported on Wednesday that the economy is experiencing a moderate growth, and expressed confidence that inflation will increase gradually to the target rate of 2%.

Dutch consumer confidence increased by four points to the highest level in almost eight years. Consumer confidence has not been this high since the crisis in 2008. According to Statistics Netherlands, the increase is mainly due to consumer optimism about the economic climate. In addition, on Thursday Statistic Netherlands reported that the unemployment rate in May was 6.9%, compared to 7.1% three months earlier.

Next Monday, Eurozone leaders will hold an emergency summit in an attempt to prevent a Greek default. Last Thursday, the ministers of finance of the Eurozone failed to reach a breakthrough in Luxembourg, just 12 days before Greece has to make a crucial payment to the IMF. According to the ECB, it is not clear whether Greek will banks be open next Monday. A lack of progress in the negotiations caused a bank run in Greece. Between Monday and Wednesday, some EUR 2 billion in savings were withdrawn (1.5% of total savings).

The 6M Euribor remained unchanged at 0.05%. The 10Y Swap increased to 1.15%.

In the attachment below, 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.