Market information Tuesday June 9th 2015

The IMF positively adjusted its expectations for Spain’s economy. The IMF expects the Spanish economy to grow with 3.1% this year. Compared to April, the expectations were 2.5%. According to the IMF the growth is being pushed by domestic factors such as the labor market reforms as well as external influences such as the low oil price, weak Euro and aggressive ECB policy.

Three days ago, Prime Minister Alexis Tsipras told his parliament that the latest proposal from the EU and IMF was “absurd”. As German Chancellor Angela Merkel warned that time was running out for a reform-for-aid deal to keep Greece in the euro, Greece proclaimed today a new willingness to compromise with its international creditors. Furthermore, the Greek government said it is ready to negotiate a settlement acceptable to both sides by the end of this month – when Greece’s bailout program expires and it faces the prospect of default on its debts.

The stock markets of China are awaiting an immense change. Later today it will most likely be announced that the Shanghai and Shenzhen stock markets will be admitted to the MSCI Emerging Market Index, the most prominent emerging markets index. Analysts expect that European and US investors will buy several billions of Chinese stocks. This large inflow of money supposedly pushes the Chinese markets even further than the rally it is currently in.

The 6M Euribor remained unchanged at 0.05%. The 10Y Swap increased with 2 basis points to 1.19%.

In the attachment below, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: update@zanders.eu.