Market Information Monday 3 October 2022

S&P Global Ratings reported Friday evening that the outlook of the United Kingdom (UK) has been lowered from stable to negative. This is in response to the budget plans that were recently announced. As a result, S&P’s expectations have been adjusted. For example, the budget deficit is now expected to increase by an average of 2.6 percent of GDP per year up to and including 2025. In addition, the government debt is now expected to rise in 2023, while it was previously expected to fall.

The Japanese industry is growing less rapidly in September, according to figures from S&P Global and Jibun Bank. The Purchasing Managers Index fell from 51.5 in August to 50.8 in September, where an index reading greater than 50 indicates industry growth, while less than 50 signifies contraction. The weak yen is not helping and is pushing up the inflation of imports.

The energy group ENI in Italy will no longer receive gas from the Russian Gazprom this Monday. ENI is the largest importer of Russian gas in Italy. Delivery is no longer possible according to Gazprom as the regulations in the transit country Austria would have changed. The Italian minister says he can get through the winter with the current stocks if no ‘catastrophic events’ take place.

The 6M Euribor decreased with 6 basis points to 1.80% compared to previous business day. The 10Y Swap decreased with 6 basis points to 3.08% 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.