Market Information Tuesday 5 January 2021

The United States has intensified its sanctions against companies and investors involved in the construction of the Nord Stream 2 gas pipeline, which runs from Russia to Germany. The US opposes the pipeline as it would give Russia more influence in Western Europe, according to the US. The US sanctions include fines for companies providing technical certificates and insurance for the gas pipeline.

Iraq increased its oil production in December. The country, which is a leading member of oil cartel OPEC, may have violated agreements on production restrictions to support prices together with other OPEC countries such as Saudi Arabia and allies including Russia (OPEC+). According to tanker data and port reports analyzed by press bureau Bloomberg, Iraq would have produced 4% more oil last month. This indicates that Iraq has failed to comply with agreements on production restrictions.

Industrial activity in the euro area reached its highest level in December since May 2018, showing further recovery from the corona crisis. This was reported by UK market researcher Markit on the basis of its purchasing managers index reflecting activity. According to Markit, the indicator came out at a final level of 55.2, compated to 53.8 in November.

The 6M Euribor decreased with 1 basis point to -0.53% compared to previous business day. The 10Y Swap decreased with 3 basis points to -0.29% 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.