Market Information Tuesday 27 October 2020

The recovery of the German economy from the corona crisis has been weakened by the increasing number of corona infections in the country and the renewed social restrictions imposed to counter the pandemic. The Bundesbank states this in its monthly report. According to the central bank, Germany’s economy clearly recovered in the third quarter from the heavy impact in the second quarter. At that time, Europe’s largest economy was still contracting at a record rate of 9.7% on a quarterly basis. For the fourth quarter, however, the Bundesbank is now expecting a weaker recovery than previously thought.

German business owners have lost some confidence in the economy this month. This was announced by the Ifo research institute. Ifo’s confidence index for October was 92.7, compared to a score of 93.4 in September. It is the first decrease in six months. In April, during the first wave of the corona crisis, the confidence index decreased to the lowest level ever measured.

The increasing number of corona infections in the world and the increasingly restrictive corona measures caused a decline on Europe’s stock exchanges on Monday. For example, the AEX index in Amsterdam ended 1.5% lower at 545.95 points. The stock market indexes in London and Paris fell by 1.2% and 1.9% respectively. The German DAX fell the most, by 3.7%.

The 6M Euribor is unchanged at -0.50% compared to previous business day. The 10Y Swap is unchanged at -0.25% 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.