Market Information Tuesday 26 July 2022

Russia said it will cut gas supplies to Europe from Wednesday, aiming at the countries that have backed Ukraine, while missile attacks in Black Sea coastal regions raised doubts about whether Russia stick to a deal to let Ukraine export grain. The first ships from Ukraine could set sail in days under a deal agreed on Friday, the United Nations said, despite a Russian missile attack on the Ukrainian port. Moscow indicates it is not interested in a complete stoppage of gas supplies to Europe.

U.S. Treasury officials indicated on Monday overall income and jobs figures suggested the economy was in good shape and not in a recession, even if data due this week shows gross domestic product (GDP) declining for a second consecutive quarter. The U.S. Commerce Department is planned to report second quarter GDP on Thursday, and economists predict a gain of just 0.5%. After a 1.6% annualized drop in first-quarter GDP, a negative second quarter result would likely turn critics of President Joe Biden to declare a United States recession.

The dollar held just below multi-decade peaks on Tuesday as traders awaited a rate hike from the U.S. Federal Reserve but wondered whether hints of a slowing economy may cause a shift away from its focus on inflation. The euro rose 0.21% to USD1.0240. The yen stabilized at USD 136.43 . Traders have been pessimistic on expectations as markets try to figure out if or when policymakers might pause inflation-fighting efforts amid signs the economy is starting to slow.

The 6M Euribor increased with 8 basis points to 0.71% compared to previous business day. The 10Y Swap decreased with 3 basis points to 1.83% 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.