Japan ran a current account deficit for the first time in five months in June as surging imports dominated exports, highlighting the strain that higher energy and raw material prices are having on the economy. The deficit is approximately 132.4 billion yen ($980 million). While yen weakness has inflated the cost of imports, its boost to the value of exports has not been as promising as it once was.
Chinese exports grew unexpectedly in July. Exports increased by 18% compared to the same month a year earlier, according to Chinese customs. That is slightly more than the 17.9% growth that occurred in June and well above the 15% analysts had expected. Domestic spending is under pressure due to strict covid measures and the real estate market is in a deep crisis.
Positive job data increases the likelihood that the US Federal Reserve will raise interest rates sharply in September. In July, 528,000 new jobs arised in the United States. Unemployment is back to pre-coronavirus levels. The strong job growth is expected to strengthen the central bank’s view that the US economy can take a beating and can also withstand additional interest rate hikes.
The 6M Euribor increased with 2 basis points to 0.69% compared to previous business day. The 10Y Swap increased with 17 basis points to 1.80% 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.
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