Market Information Tuesday 25 January 2022

U.S. stock markets ended in the green yesterday after taking a substantial dive that day. The S&P500 eventually rose 0.3% and ended at 4,410.13 points. The Nasdaq managed to rise 0.6% to a high of 13,855.13 points, the Dow Jones rose 0.3% to close at 34,364.50. With this, the volatile day still ended on a profit, after previously heavy losses, where for example the Dow Jones index was down about 1,100 points. This market sentiment is driven by expectations of the Federal Reserve’s interest rate decision Wednesday, and the release of corporate figures from major tech companies.

U.S. economic activity in the manufacturing and services sectors declined in January. The manufacturing index fell to 55.0 in the following month from 57.7 in December. For the services sector, the decline was even more severe: from 57.6 to 50.9. Both current index positions are the lowest points in about a year and a half.

Due to the high inflation in the UK in December, the British central bank is preparing to implement an interest rate increase. The UK consumer price index came in at 5.4% year-on-year. Wage increases may ease the pain of inflation somewhat in the coming months, but may also ensure a longer period of inflation. Hence, there is an expectation to raise interest rates to counter inflation.

The 6M Euribor is unchanged at -0.52% compared to previous business day. The 10Y Swap decreased with 3 basis points to 0.35% 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.