Market Information Monday 12 August 2019

The British National Statistical Office has announced that the UK economy contracted by 0.2% in the second quarter of 2019. This is the first contraction of the British economy since 2012. The contraction was caused, among other factors, by substantially reduced inventories of companies. These inventories were built up in the run-up to the initial Brexit date in March 2019. Economists had expected a stagnation in the economy. In response to the news, the rate of the British pound fell with 1.0% to EUR/GBP 1,074 on Friday at close of the markets, the lowest level since 2009.

Statistics Netherlands (CBS) has published figures showing that the number of companies that declared bankruptcy in the Netherlands in July 2019 remained virtually the same as the previous month. According to the CBS, 311 companies and institutions were declared bankrupt in July, compared to 309 in June 2019. The number of bankruptcies was highest in the trade sector.

The Italian Deputy Prime Minister Matteo Salvini called for new elections on Friday. In a speech, Salvini, leader of the Lega, said he no longer has confidence in the coalition with the Five Star Movement of prime minister Di Maio. As a result, 10-year Italian government bond yields rose by 27 basis points to 1.804% on Friday at close of the markets, and share prices of Italian banks fell by 8%.

The 6M Euribor is unchanged at -0.39% compared to previous business day. The 10Y Swap decreased with 2 basis points to -0.13% 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.