Market Information Monday 30 September 2019

Market researchers Markit and Caixin have published figures showing that activity in the Chinese industry grew more strongly in September 2019 than in the previous month. The Purchasing Managers Index (PMI) rose from 50.4 in August to 51.4 this month. Economists had expected on average a decrease to 50.2. Earlier, the Chinese government published figures, which showed that the PMI for the industry had fallen further to 49.8. The government figures mainly focus on state-owned companies, while Markit and Caixin mainly survey smaller private companies.

Final figures from the University of Michigan show that consumer confidence in the US increased in September 2019 compared to the previous month. The index that measures confidence rose from 89.8, the lowest level in 3 years, to 93.2. A figure of 92.0 was reported in an earlier estimate.

According to Michael Saunders, a policy maker of the Bank of England (BoE), the BoE will have to lower interest rates, even if the UK is able to prevent a no-deal Brexit. His statements are remarkable, since Saunders is known as a fierce opponent of monetary intervention. According to Saunders, uncertainties surrounding Brexit are putting pressure on economic growth, even if a deal will be concluded in the short term. He also points to the declining global economic growth. As a result of comments made last Friday, the British pound fell sharply against the euro.

The 6M Euribor is unchanged at -0.38% compared to previous business day. The 10Y Swap is unchanged at -0.16% 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.