Market Information Monday 2 December 2019

According to figures from the Chinese statistics bureau, the Chinese industry increased in November 2019 after seven months of contraction. The purchasing managers index (PMI) was 50.2 in November, compared to 49.3 in October. The growth of the industry was mainly caused by increased domestic demand. The Chinese consumers spent more than expected in November caused by, among other things, incentives provided by the Chinese government. Foreign demand is still suffering from the trade war with the United States.

Unemployment in the euro area decreased to 7.5% in October, compared to 7.6% in September. According to figures published by Eurostat. This is the lowest level of unemployment since July 2008. 12.3 million people were unemployed in October.

The Federal Reserve (Fed) became the largest party in the repo market. According to Bloomberg news agency, the total amount of repurchase agreements (repo) that are issued on a daily basis has increased to an average of USD 140 billion. The cash injections are the result of a large increase of the repo interest rate to 10.0% in September, caused by the scarcity of cash and a surplus of government bonds. Since then, the FED limits have been increased and the Fed is allowed to invest USD 120 billion in repurchase transactions every day.

The 6M Euribor decreased with 1 basis point to -0.35% compared to previous business day. The 10Y Swap is unchanged at 0.05% 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.