Market Information Thursday 5 March 2020

Statistics Netherlands (CBS) has announced that consumer prices rose at a lower rate in February 2020 than the month before. The consumer price index increased by 1.6% on an annual basis in February, compared with 1.8% on an annual basis in January. The decrease was mainly caused by lower fuel prices. Based on the harmonized European measurement method, consumer prices rose 1.3% on an annual basis in February, compared to 1.7% on an annual basis in January. According to CBS, the price increase for the Eurozone in February was 1.2% on an annual basis.

The upcoming Governor of the Bank of England (BoE) Andrew Bailey has indicated that the central bank may need to act quickly in addressing the economic impact of the corona virus. Bailey will succeed current governor Mark Carney mid-March. According to Bailey, the virus can have an impact on the supply of companies, and companies must therefore receive support. In the financial markets, an interest rate cut by the BoE is increasingly being expected. The central banks of the United States, Canada and Australia have already lowered rates.

The services sector in China is suffering heavily from the effects of the corona virus. The purchasing managers’ index of research firms Caixin and Markit fell from 51.8 in January 2020 to 26.5 in February 2020. A position above 50 indicates growth. It is the first time since the start of the measurements in 2005 that the indicator has fallen below a level of 50. Because of the virus, public life is largely halted, which is heavily affecting the services sector.

The 6M Euribor decreased with 2 basis points to -0.42% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.22% 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.