Market Information Monday 27 June 2022

The annual ECB forum takes place in Portugal from Monday to Wednesday. This could potentially provide information about ECB monetary policy and economic developments. On Tuesday, German, French and American consumer confidence are scheduled. Japanese consumer confidence is scheduled for Wednesday as well as Dutch business confidence. On Friday, we will finish the week with Japan’s Tankan index and manufacturing purchasing managers’ indices in Japan, China, Europe and the Americas.

The United States will join other countries in blocking Russian gold imports in order to scale up sanctions against Moscow over its invasion of Ukraine. This was reported by a US government official to the Wall Street Journal this weekend. Earlier, the Reuters news agency reported that Washington wants to impose a price cap on Russian oil, in order to further limit Putin’s profits. That proposal will also be discussed during the G7 summit.

The Bank for International Payments indicates that the world’s central banks should raise interest rates sharply, even if this significantly harms growth. There is a risk of an inflation spiral like in the 1970s, if interest rates do not rise sharply. Even if central banks do raise interest rates sharply, the global economy could still face a toxic combination of low or negative growth and high inflation.

The 6M Euribor decreased with 2 basis points to 0.27% compared to previous business day. The 10Y Swap increased with 2 basis points to 2.23% 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.