Market Information Thursday 28 October 2021

The growth of the German economy for 2021 has been revised downwards. The German economy is growing much less quickly than the government had predicted. The German government now predicts that the economic growth will be 2.6% this year, whereas it was previously predicted to be 3.5%. In particular, problems with the international supply chains and the increased energy prices have a strong negative effect on the German economy. The government expects a growth of 4.1% for 2022, which is 0.5% higher than previously forecast. For 2023 a growth of 1.6% is predicted.

In the United States, the number of orders for durable goods fell in September on a monthly basis, but less sharp than previously expected. The US government reports that orders fell by 0.4%, where economists expected a fall of 1.0%. In August, durable goods orders increased 1.3% month-on-month. Excluding transport equipment, such as cars, orders rose by 0.4%. Excluding new defence contracts, orders fell by 2.0%.

The European Commission (EC) wants new rules to come into force from 2025 onwards, which will ensure that banks have more money in cash to cope with any setbacks. The EC wants the new Basel-IV rules to come into force in 2025 rather than in 2023. From 2030 onwards, the buffers of European banks will have to increase by average of around 9%, according to the EC. The EU countries and the European Parliament will have to agree on these proposals by the EC.

The 6M Euribor is unchanged at -0.53% compared to previous business day. The 10Y Swap decreased with 7 basis points to 0.20% 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.