Market Information Tuesday 24 March 2020

Figures published by Jibun Bank show that the Japanese services sector is impacted severely by the corona crisis. The purchasing managers index for the services sector fell from 46.8 in February 2020 to 32.7 in March 2020. This is the lowest level ever reported. For industry, the purchasing managers index fell from 47.8 in February to 44.8 in March 2020. The composite index of the services sector and industry was reported at 35.8.

In the US, Democratic senators have voted down a sizeable stimulus package for the US economy for the second time in a row. The plans, which are estimated to cost the US government approximately USD 2,000 billion, are said to focus too much on assisting businesses affected by the virus outbreak and too little on supporting families, hospitals and medical personnel. Tonight, a revised version of the support package will be scheduled for another vote.

International Monetary Fund chief Kristalina Georgieva said in a speech that the IMF fears that the corona crisis will cause a recession “at least as severe as the 2008 financial crisis, or worse.” According to the IMF, it is important that countries work together as much as possible to protect their populations and to minimize the economic damage caused by the virus outbreak. The IMF has pledged to arrange approximately USD 1,000 billion in loans to support countries in need.

The 6M Euribor increased with 4 basis points to -0.31% compared to previous business day. The 10Y Swap decreased with 4 basis points to 0.03% 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.