Market Information Thursday 30 June 2022

The US economy shrank more in the first quarter of this year than initially thought. This became apparent on Wednesday from the third and final estimates by the US Department of Commerce. The gross domestic product (GDP) did not decline in the first quarter by 1.5% on an annual basis, but by 1.6%. In the fourth quarter last year, the growth rate was still 6.9%, which means that the US economy grew by 5.7% in the whole of 2021. The PCE price index rose 7.1% in Q1, up from 6.4% a quarter earlier. The previous estimate for the first quarter stood at 7.0%. The core price index, i.e. excluding food and energy, rose 5.2%, 0.1% point higher than in the previous estimate. It was 5.0% in the fourth quarter.

Consumer confidence in the eurozone deteriorated further in June. This was shown Wednesday by figures from the European Commission. The index which reflects the confidence decreased from -21.2 in May to -23.6 in June. This was in line with expectations. In the business sector, sentiment actually improved somewhat. Confidence in manufacturing improved from 6.5 to 7.4 positive. Confidence in the services sector went from 14.1 to 14.8. Economic sentiment in the eurozone deteriorated slightly, with the index falling from 105.0 to 104.0. Here, however, a decline to 103.0 was anticipated.

Consumer prices in Germany rose less rapidly in June than in the previous month and than expected. This was shown Wednesday by preliminary figures from the German statistical office Destatis. The inflation rate was 7.6% in June on an annual basis against 7.9% in May. Economists consulted in advance had expected 8.0% inflation in June. In June, energy prices in Germany increased by 38.0%, slightly less than the increase in May, and food prices rose by 12.7%. On a monthly basis, prices rose by 0.1% in June, compared to the forecast of 0.5%.

The 6M Euribor increased with 1 basis point to 0.23% compared to previous business day. The 10Y Swap decreased with 6 basis points to 2.35% 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.