Market Information Tuesday 19 July 2022

U.S. bank executives are optimistic on loan growth as demand for borrowing from retail and business customers increased in the second quarter from the lows of the pandemic, but warned demand could weaken later this year if the worsening economic outlook starts to weaken the consumer confidence. Analysts and investors have been keeping an eye on loan growth, which is a core driver of bank income, after extraordinary government stimulus during the COVID-19 pandemic dampened companies’ and consumers’ appetite for bank borrowing.

U.S. home builder sentiment has fallen in July to its lowest level since the early months of the coronavirus pandemic, as high inflation and the steepest borrowing costs in more than a decade reduced transaction volume. The National Association of Home Builders/Wells Fargo Housing Market Index fell for a seventh straight month to 55, the lowest level since May 2020.

The markets will focus at the ECB interest rate decision on Thursday. Gas from Russia will also be a major focus as maintenance on the Nord Stream pipeline ends on Thursday. The EU is expected to specify its energy contingency plans in case Russia does not resume supply via the pipeline.

The 6M Euribor increased with 8 basis points to 0.53% compared to previous business day. The 10Y Swap increased with 6 basis points to 2.02% 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.