Market information Tuesday 17th of May, 2016

The price of Brent crude and WTI crude oil both increased over 3% yesterday. The price increase follows a relatively optimistic report from Goldman Sachs. According to the investment bank, the market went from an oil surplus to a deficit. Temporary factors, such as forest fires in Canada, attacks on the oil industry in Nigeria and a larger than expected demand from China, are the main drivers for this sudden deficit.

Figures published by the German Federal Statistics Office showed that the German economy grew by 0.7% in the first quarter of 2016 compared to the last quarter of 2015. Analysts expected a growth of 0.6% for the first quarter of 2016. In the last quarter of 2015 the German economy grew with 0.3%. The growth of the German economy is mainly driven by low unemployment, which consequently has a positive effect on domestic spending.

The Russian economy shrank at a lower rate in the first quarter of 2016 compared to the last quarter of 2015. In the first quarter of 2016 the Russian economy shrank by 1.2%, where a decline of 1.4% was expected by the Russian government. In the last quarter of 2015 the Russian economy still showed a decline of 3.8%. The lower negative growth rate is partly the result of the Russian industry and retail sector performing better in 2016 compared to 2015.

The 6M Euribor remained unchanged at -0.14%. The 10Y Swap increased with 2 basispoints at 0.54%.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: update@zanders.eu.