Market information Monday November 2nd 2015

China’s manufacturing industry has shrunk in October for the third consecutive month, according to Reuters. The service sector, usually a luminary in the Chinese economy, also shows signs of deceleration. This indicates further slowdown in the Chinese economy despite the government stimulus.

The inflation rate in the Eurozone in October was 0% compared with the same month last year, according to Eurostat. The reason is the low energy prices. Core inflation amounted to 1.1%. On December 3 the ECB will publish the new inflation forecast for 2016 and if the forecast has worsened they possibly expand the asset purchase program.

Last Friday, the Bank of Japan left monetary policy unchanged. Despite lower growth and inflation prospects, the asset purchase program started in 2013 will not be expanded. The central bank still has confidence that the program will get inflation towards the target of 2% even though consumer prices in September declined by 0.1% compared with the same period last year.

The 6M Euribor decreased with 1 bp to 0.00%. The 10Y Swap decreased with 1 bp to 0.91%.

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: update@zanders.eu.