Market Information Tuesday 2 November 2021

Research by the recruitment website Indeed shows only a small increase in the proportion of British workers who say they are urgently looking for a new job. Therefore, the end of Britain’s furlough programme has not led to a surge in new job-seekers. Data suggests that unemployment is unlikely to rise sharply and could bolster the case for a Bank of England interest rate hike.

The Institute for Supply Management (SIM) hinted that U.S. manufacturing activity slowed in October, with all industries reporting record-long lead times for raw materials. This indicates that stretched supply chains continued to constrain economic activity early in the fourth quarter. A measure of new orders dropped to a 16-month low. Still, demand remains strong as retail inventories continue to be depressed, which should keep manufacturing activity high.

The Commerce Department said that U.S. construction spending unexpectedly dropped 0.5% in September. Construction spending increased 7.8% on a year-on-year basis in September. Last week, a governmental report showed that GDP increased at a 2.0% annualized rate, lower than the robust 6.7% pace in April-June. The construction sector does not seem to benefit from this slow increase, as shortages and more expensive building materials are restricting homebuilding.

The 6M Euribor is unchanged at -0.53% compared to previous business day. The 10Y Swap is unchanged at 0.28% 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.