Market Information Thursday 30 January 2020

Yesterday the Federal Open Market Committee (FOMC) of the Federal Reserve unanimously decided to maintain its benchmark policy rate at a bandwidth of 1.50% – 1.75%. The interest rate on bank reserves was slightly increased. In an explanation, chairman Jerome Powell indicated that this is only a technical adjustment to properly pass monetary policy on to the economy. Furthermore, Powell indicated that he does not expect the FOMC to further raise interest rates in 2020, because the current policy is appropriate for sustaining economic expansion.

Boeing has published its annual report for 2019. The figures show that the American group incurred a loss of approximately USD 636 million last year, the first loss since 1997. However, the loss was lower than expected by analysts. The loss was largely caused by two aircraft crashes with its type 737 Max. In addition to the fact that aircrafts of this type are not expected to fly again until mid-2020 (which resulted in a cost of approximately USD 14 billion in 2019), it also led to reputational damage for Boeing. For example, the number of airplanes delivered by Boeing fell from 806 in 2018 to 380 in 2019.

Statistics Netherlands (CBS) has published figures showing that producers’ confidence in the industry fell in January 2020 compared to a month earlier. The index that measures confidence fell from 2.9 in December to 2.5 in January. Producers were especially less positive about the order position.

The 6M Euribor decreased with 1 basis point to -0.34% compared to previous business day. The 10Y Swap decreased with 2 basis points to 0.00% 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.