Market Information Thursday 6 October 2022

The British pound weakened against the dollar on Wednesday, ending a six-day rally, but staying well off recent lows as British Prime Minister Liz Truss spoke at the Conservative party conference on Wednesday. Truss urged the Conservative party to stick together and help transform the economy and the country, as she fights to restore her dwindling authority after a chaotic first month in office.

Major central banks are determined to clamp down on inflation, with Australia and New Zealand delivering further interest rate hikes this week. A smaller-than-anticipated rate hike in Australia has fueled talk that global monetary tightening will slow as the growth outlook turns. Central banks in the 10 largest economies have raised rates by a combined 2,040 basis points in this cycle to date, with Japan lagging.

The World Trade Organization forecasts a slowdown of global trade growth next year as higher energy and food prices and rising interest rates curb demand.. The Geneva-based organisation said on Wednesday that merchandise trade would increase by 3.5% this year, up from its April estimate of 3.0%. However, for 2023, it sees trade growth of just 1.0%, compared with a previous forecast of 3.4%.

The 6M Euribor decreased with 2 basis points to 1.76% compared to previous business day. The 10Y Swap increased with 14 basis points to 2.96% 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.