Market Information Thursday 25 June 2020

The United States is considering imposing additional import tariffs of a further USD 3.1 billion on goods from European countries in retribution for ‘illegal’ European state aid to aircraft manufacturer Airbus. This is revealed in a notice from the United States Trade Representative (USTR), an institution acting on behalf of the US president. It concerns products from France, Germany, Spain and the United Kingdom. Last year, the World Trade Organization (WTO) ruled in the Americans’ favour in the dispute with the EU and authorised the imposition of tariffs of USD 7.5 billion on European exports.

The International Monetary Fund (IMF) believes that the global economic damage caused by the corona crisis will total more than USD 12,000 billion in 2020 and 2021. This is what IMF chief economist Gita Gopinath writes in a report on the consequences of what she calls the ‘Great Lockdown’. According to Gopinath, the virus outbreak and global lockdown measures against the virus caused the deepest recession since the Great Depression of the 1930s, with an expected global contraction of 4.9% this year. Next year, the global economy is predicted to recover by 5.4%.

The Dutch economy is contracting even more than the IMF foresaw two months ago, but is recovering more robustly thereafter. According to the organization, the Dutch gross domestic product will decrease by 7.7% this year. In April, the IMF expected a contraction of 7.5%. Next year however, the Dutch economy will grow again by 5%. For 2021, the IMF had previously forecasted a growth of 3%.

The 6M Euribor decreased with 1 basis point to -0.27% compared to previous business day. The 10Y Swap decreased with 2 basis points to -0.16% 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.