Market information Thursday 26th of May, 2016

For the first time since November 2015, a barrel of Brent Oil USD 50. The oil price almost doubled since it reached its lowest point of USD 27 in January this year. This is due to lower stocks in the US, a decline in world production, decreased production due to fires in Canada and militant attacks in Nigeria.

The interest rate on 10-year Greek government bonds fell by 12 basis points to 6.9% after a new deal with Europe was closed on Tuesday night. It is the first time since November 2015 that the rate has dipped below 7%. Early this year rates of over 10% were reached.

According to Jeffrey Immelt, CEO of General Electric (GE), world trade will not recover in the short run and therefore, GE will bring its activities more towards their homeland. Globalization is under pressure due to increased protectionism and free trade is not the solution for all market problems. This is currently also the main idea in the US, according to Immelt. In the US election campaign, almost all candidates taking a stand for protectionist measures. This threatens the free trade agreement with many countries in Asia (TTP) and without TTP, the trade agreement between Europe and the US (TTIP) will also not been closed. In addition, many Britons think to be better off outside the EU and Latin American, Asian and African directors are increasingly trying to protect their own markets.

The 6M Euribor remained unchanged at -0.14%. The 10Y Swap decreased with 2 basispoints to 0.55%.

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.