Market Information Thursday 13 October 2022

The average interest rate on the most popular U.S. mortgage loan rose to its highest level since 2006. This is shown by data from the Mortgage Bankers Association (MBA) on Wednesday. Mortgage rates have more than doubled since the beginning of the year as the Federal Reserve pursues an aggressive path of interest rate hikes to bring down high inflation.

The S&P 500 and the Nasdaq increased on Wednesday after a five-day decline, but inflation and rate hike worries capped the gains after a higher-than-expected rise in September producer prices. The Labor Department’s producer prices index rose 8.5% in the 12 months through September, slightly higher than an estimated 8.4% rise. The reading was still lower than the 8.7% increase in August. Persistent inflation has increased concerns about the Fed’s aggressive monetary action tipping the United States into a recession.

Canada’s main stock index extended losses to a fifth straight session on Wednesday, mostly due to declining energy stocks. The energy sector dropped 1.4%. This due to declining oil prices struck by a gloomy economic outlook and a strong dollar that outweighed supply concerns stemming from OPEC+ cutting its production target.

The 6M Euribor increased with 4 basis points to 2.00% compared to previous business day. The 10Y Swap decreased with 1 basis point to 3.30% 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.