Market Information Thursday 3 October 2019

The World Trade Organization (WTO) has determined that the US is permitted to impose tariffs on 7.5 billion US Dollar of EU exports. The tariffs serve as a retribution for the illegal European subsidies to aircraft constructor Airbus. These are the highest tariffs ever approved by the WTO. The tariffs may be imposed on European products such as alcohol, groceries, luxury goods and airplane parts.

British prime minister Boris Johnson has addressed a letter to President of the European Commission Jean-Claude Juncker concerning a compromise proposal with new agreements on Brexit. The proposal for the backstop, the guarantee of a none physical border between Ireland and North-Ireland, will be cancelled. However, Johnson prefers a zone for (North) Ireland in which the same rules apply to all goods.

Russian President Vladimir Putin has announced during an Energy Forum in Moscow that Russia will remain a responsible OPEC partner. Oil ministers from OPEC countries Iran and Saudi-Arabia attended the event. Russia is not a member of OPEC, but has signed an agreement with OPEC on decreasing the oil production in order to support oil prices.

The 6M Euribor is unchanged at -0.39% compared to previous business day. The 10Y Swap increased with 1 basis point to -0.14% 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.