Market Information Tuesday 17 March 2020

The price of a barrel of Brent oil fell sharply yesterday, from USD 33.85 on Friday to USD 30.05 on Monday as the market closed. This is the lowest level since January 2016. The sharp drop was caused by lower demands from airlines. In addition, the financial director of the Saudi state oil company Saudi Aramco indicated that he is satisfied with an oil price around USD 30.

State planners of the Chinese government stated at a press conference that growth in the Chinese economy is expected to pick up to “normal levels” in the second quarter of 2020. Officials say the Chinese government has enough policy tools to boost economic activity again.

US Treasury Secretary Steven Mnuchin is preparing a major support package to help the US economy get through the corona crisis. He said that after a meeting with the Republican party. The aid package is in addition to the emergency law with corona measures that is already pending Senate approval. According to Republican Marco Rubio, the new measures will mainly support airlines and small businesses.

The 6M Euribor increased with 5 basis points to -0.40% compared to previous business day. The 10Y Swap increased with 2 basis points to -0.07% 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.