Market information Friday March 11th 2016

The president of the European Central Bank (ECB) Mario Draghi announced Thursday in Frankfurt the new package of bond repurchases and interest rate policy. The interest rate which banks pay to borrow in Frankfurt will be lowered from 0.05% to 0%. Further lowering of the interest rate is not necessary according to Draghi. Bond repurchases will be increased, with 20 billion euro on a monthly basis. Besides government bonds also corporate bonds will be eligible. With the stimulus package the ECB tries to boost the economy and the inflation. The effect on the European and American exchanges was an extreme increase in volatility. The value of the euro closed on the European market at 1,1185 USD.

Based on the Political Risk Map, doing business in emerging markets is getting safer, for the first time in 3 years. The measures which the Chinese government took against corruption helped as well as the international sanctions against Iran which were lifted. As a result, doing business in the Arabic region is considered to be safer.

Peking opened its government bond market up to international investors. Doubts about the prospects of the Chinese economy are cause in a low appetite of investors, for now.

The 6M Euribor remained unchanged at -0.14%. The 10Y Swap increased with 4 basispoints to 0.64%.

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: