Market Information Monday 11 April 2022

This week, three central banks will announce their plans for local interest rates. In New Zealand, an increase of 0.25 percentage point is expected. An increase of 0.5 percentage points is expected in Canada, bringing the rate there to 1 percent. Thursday, the ECB will convene to discuss monetary policy. Analysts say further weakening of the euro is imminent, not only against the Canadian and New Zealand dollars, but also against the US dollar. A peace deal between Russia and Ukraine could spark a rebound in the euro.

The earnings season starts this week in the US. The banks will be the first to present the quarterly figures. Several smaller funds are also opening the books in the Netherlands. On Monday, the market will focus on UK industrial production and Chinese inflation. On Tuesday, the focus will be on consumer prices in the US and Germany. In the middle of the week, UK inflation and US producer prices will follow.

According to credit rating agencies, Russia will no longer be able to pay its foreign debts in the short term. The last time the country failed to pay its foreign creditors was at the start of the Russian Revolution in 1917. Over the past week, Russia has paid some dollar loans in rubles. The country intends to continue to do so as long as it does not have access to foreign exchange reserves. Russia can no longer access those reserves thanks to sanctions imposed by other countries since its invasion of Ukraine.

The 6M Euribor is unchanged at -0.36% compared to previous business day. The 10Y Swap increased with 6 basis points to 1.40% 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.