Market Information Monday 20 May 2019

Eurostat reports that in April inflation in the Eurozone has increased to 1.7% annually, compared to 1.4% in March, in line with preliminary estimates. Core inflation, inflation without the influence of strong fluctuating prices for energy and groceries, increased in April to 1.3% annually. In March core inflation amounted 0.8% annually.

President Trump announced a delay in imposing tariffs on imported vehicles and parts from the European Union and Japan. Previously, Trump had threatened to increase tariffs with 25% as of May 18. The reason for the delay is that Trump wants to await the negotiations of the US International Trade Commission.

The Japanese government reports that the Japanese economy unexpectedly grew with 2.1% in the first quarter of 2019. In this period the exports decreased, however the economy was able to grow because imports fell faster than exports. Economists state that because of the decrease in exports, the economic growth is not a sign of a strong Japanese economy.

The following macro-economic figures will be published in the coming week:
• Gross Domestic Product (GDP) Germany
• Producer Price Index (PPI) Germany
• Producer Price Index (PPI) United Kingdom
• Consumer Price Index (CPI) United Kingdom

The 6M Euribor is unchanged at -0.24% compared to previous business day. The 10Y Swap decreased with 2 basis points to 0.42% 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.