Market information Monday September 7th 2015

Last week, the sentiment on the stock markets was mainly driven by macro-economic news. Investors are still concerned about the equity price in China, although these concerns ebbed away at the end of the week since the Chinese stock markets were closed on Thursday and Friday. Another factor that influenced last week is the possible rate hike of the FED in the short term.

The German Statistical office reported today that the industrial production in the Germany increased by 0.7 percent in July compared to the previous month. The growth was less than expected. According to the forecasts of economists the production of the German industry would increase with 1.1%. Compared to previous year, industrial production of the German industry has increased by 0.5 percent.

The competition for traditional banks in the mortgage market continues to increase as more and more alternative investors enter the market. The market share of ‘shadow banks’, including pension funds and investment companies, is currently about 10% and is expected to rise further in the coming years. The increased competition will probably lead to lower mortgage rates for consumers. Where the ABN Amro, ING, and Rabobank had 70% market share in 2011, currently they have less than 60%. This is due to the more stringent capital requirements that banks must meet.

The 6M Euribor remained unchanged at 0.04%. The 10Y Swap decreased with 5 bp to 0.99%.

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: