Market information Monday September 14th 2015

Yesterday, Germany has announced the immediate introduction of border controls in order to control the influx of refugees. Likewise, the rail traffic between Germany and Austria is temporarily suspended. The Czech Republic has also introduced border controls at the border with Austria. According to the German Minister of Internal Affairs Thomas de Maizière, the controls are in line with the Schengen Agreement as has been confirmed by the European Commission. The temporary measures may last for 30 days and thus put pressure on the negotiations for a better distribution of refugees across Europe.

The Japanese industrial output in July decreased faster than previously anticipated as reported by the Japanese government this morning. The seasonally adjusted industrial output, on a monthly basis, decreased by 0.8% where a contraction of 0.6% was predicted.

The BIS, Bank for International Settlements, says in its quarterly report, published yesterday, that the debt levels of emerging countries have risen worryingly high. Countries such as Brazil, Russia, Indonesia, Turkey, and China can face a shock that can cause serious damage to the economy. The fact that the outstanding dollar loans outside the US has increased by 50% to USD 9600 billion since 2009 can exacerbate the problem when the FED decides to raise interest rates.

In the Netherlands, mortgage rates for a five-year fixed rate period have reached the lowest point in 50 years. The interest rate is currently 2.12% while the average mortgage rate over the past 50 years is 7%. Mortgage rates have been very low due to the low interest rates on the capital market for a long time.

The 6M Euribor remained unchanged at 0.04%. The 10Y Swap decreased with 1 bp to 1.00%.

Kind regards,
Mark-Paul Westerouen van Meeteren

In the attachment below, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: update@zanders.eu.