Market Information Thursday 12 May 2022

European Central Bank (ECB) President Christine Lagarde hinted at a first interest rate increase in the summer in a speech in Slovenia on Wednesday. Lagarde reiterated that the first interest rate hike will come after “some time”, after the buyback programme is over. Although the exact timing is yet to be determined, Lagarde said that “I have been very clear that this could mean a period of just a few weeks”. After the first increase, a gradual process will follow, Lagarde said. At the end of April, Vice-President Luis de Guindos also said an interest rate increase in July was possible. The ECB meets on 9 June and then on 21 July and 8 September.

The consumer prices in the United States rose faster than expected in April. This was shown Wednesday by figures from the U.S. Department of Labor. Consumer prices increased last month by 0.3% on a monthly basis and on an annual basis prices increased by 8.3%, compared to 8.5% in March. Core inflation, i.e. adjusted for food and energy prices, was 0.6% on a monthly basis in April, up from 0.3% in March. On an annual basis, core inflation was 6.2% compared to 6.5% a month earlier. The outlook for inflation was 8.1% year-on-year and 0.2% month-on-month. Core inflation was expected to be 6.0% year-on-year and 0.4% month-on-month.

Crude oil stocks in the United States rose sharply last week. This was revealed on Wednesday by figures from the American energy agency EIA. In the week to 6 May, crude oil stocks rose by 8.5 million barrels to 424.2 million. Gasoline stocks decreased by 3.6 million barrels to 225.0 million barrels. Fuel oil and diesel stocks decreased by 0.9 million barrels to 104.0 million. Refinery capacity utilisation was 90.0%, compared to 88.4% a week earlier.

The 6M Euribor decreased with 2 basis points to -0.20% compared to previous business day. The 10Y Swap decreased with 7 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.