Market Information Monday 6 December 2021

Friday’s transparency exercise by the European Banking Authority showed that the largest European banks have seen their liquidity, profitability and solvency rise. Of the 120 participating banks, the CET 1 ratio stood at 15.8 percent at the end of the second quarter. This is an increase of 0.8 percentage points compared to mid-2020. What was striking was that the return on equity of the participating banks had risen from 0.4 to 7.4 percent. The EBA advised the banks to exercise restraint when it comes to paying dividends.

On Friday, the oil price fell slightly with 0.4 percent at a settlement of $ 66.26 (WTI). The price of a barrel fell nearly 3 percent on a weekly basis, after losing more than 10 percent the week before. Many investors are concerned about the impact of the omicron variant on oil demand. OPEC+ decided to increase production by 400,000 barrels per day in January, despite new concerns about the new corona variant.

Analysts indicate that the jobs figures determine the further course of the trading day and there is a very good chance that the central bank will adjust its policy accordingly. It is expected that 550,000 new jobs will be created in the US in November. A month earlier, 531,000 jobs were added. Unemployment fell from 4.6 to 4.5 percent and hourly wages rose by 5 percent.

The 6M Euribor is unchanged at -0.54% compared to previous business day. The 10Y Swap decreased with 2 basis points to 0.10% 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.