Market information November 16th 2015

According to European Central Bank (ECB), four out of nine tested banks has a shortfall in capital as a result of a stress test. The stress test indicates that Novo Banco, one of the most important banks in Portugal, has a capital shortfall of EUR 1.4 billion. The Portugean government saved the bank during the credit crisis and is now trying to sell the bank, however unsuccessfully until now.

IMF representatives have told China that the yuan is likely to be included in the basket of reserve currencies, according to Bloomberg. It is expected that the board of IMF will agree to this measure later this month. The group of currencies that IMF keep track of determine the value of the so called Special Drawing Rights (SDR).

Last Friday, credit rating agency Fitch has affirmed that the highest possible credit rating for long term government obligations, namely triple A, continues to apply for the Netherlands. The Dutch economy is rich and diverse and has shown a strong recovering from the crisis, according to Fitch. They expect that the Dutch economy will grow with 1.9 % this year and will stabilize at 1.7% growth pace in 2016 and 2017.

The France financial markets will be open today in despite of the terroristic attacks in Paris last Friday. According to Bloomberg, especially firms in the insurance market and travel industry can expect a decrease in turnover as a result of the attacks. According to financial analysts, Dutch export will also be effected by French border controls.
The 6M Euribor remained unchanged at -0.01%. The 10Y Swap decreased with 3 basis points to 0.91%.

In the attachment, 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.