Market Information Monday 1 March 2021

Worldwide interest rates are on the rise, impacting the stock markets. The imminent reopening of economies is expected to lead to a significant recovery in economic growth, this is agreed upon by economists worldwide. When growth would increase consumers will spend more saved during the crisis, which could lead to higher inflation, and therefore higher interest rates. Especially in the US, investors expect the recovery of the economy to be stronger causing inflation to rise.

Global demand for oil is expected to increase following the expected recovery of the world economy. Global inventories are said to be decreasing at the steepest rate in two decades. Prices have rallied to pre-coronavirus levels, while U.S. production has taken a hit from freezing storms. Though demand for aviation fuels remains low, purchases of products that cater to working and consuming at home, have boomed.

The UK will launch its first sovereign green savings bonds this week, offering retail investors the chance to invest in sustainable projects such as renewable energy schemes. A savings bond will be offered this year through National Savings & Investments, the government-backed savings scheme.

The 6M Euribor is unchanged at -0.52% compared to previous business day. The 10Y Swap decreased with 7 basis points to 0.03% 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.