Market Information Wednesday 1 December 2021

Data from Eurostat showed that Eurozone inflation soared to its highest rate on record this month on surging energy costs. The Eurozone consumer price inflation is expected to accelerate to 4.9% year-on-year in November, from 4.1% in the previous month. This would be the highest rate of inflation since July 1991.

Federal Reserve Chair Jerome Powell said the U.S. central bank likely will discuss speeding up tapering large-scale bond purchases at its next policy meeting, amid a strong economy and expectations that a surge in inflation will persist into the middle of next year. The Fed decided to cut its USD 120bn/month bond-buying stimulus programme by USD 15bn this month, and again in December. At that pace, the tapering would end in June.

India grew at the fastest pace of any major economy in the July-September quarter but economists said disruptions from the emerging Omicron coronavirus variant risked slowing the recovery, especially given India’s low vaccination rates. India’s economy grew 8.4% year-on-year in September, while manufacturing went up 5.5% in the previous quarter. Economists fear that the new COVID-19 variant and inflation pose new risks.

The 6M Euribor is unchanged at -0.54% compared to previous business day. The 10Y Swap decreased with 2 basis points to 0.14% 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.