Market Information Monday 22 June 2020

Christine Lagarde, the president of the European Central Bank (ECB), warned European leaders on Friday that there may be risks to the financial markets if aid packages for economic recovery will not come. The current calm stock market sentiment could change if no agreement is reached, according to Lagarde. The ECB aims to link a recovery fund of EUR 750 billion for the worst-affected Member States to the Multiannual Financial Framework. Moreover, this framework will be increased to EUR 1100 billion, from the current framework (the years 2014 – 2020) of approximately EUR 1000 billion. This makes a total fund of € 1870 billion.

UK retail sales recovered sharply in May, with the first loosening of the corona virus lockdown measures. According to figures from the UK’s national statistics agency, sales increased 12 percent compared to last month. In April, when the severe lockdown was still in place, retail sales declined by more than 18 percent from March.

The British budget deficit is widening as a result of the corona crisis, in particular due to London’s urges to resolve the crisis. For the first time since 1963, public debt exceeds 100 percent of gross domestic product (GDP). Since the beginning of the year, the British state has borrowed £ 103.7 billion, according to the British statistics bureau.

The 6M Euribor decreased with 1 basis point to -0.23% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.15% 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.