Market Information Wednesday 12 August 2020

German investors’ prospective confidence increased sharply in August, according to the ZEW index published yesterday. Economists expected a reading of 58, but the index increased to a level of 71.5 from 59.3 in July. Investor confidence for the current situation is still negative with a reading of -81.3 compared to -80.9 a month earlier. According to the research institute expectations for the Euro-area economy as a whole also improved in August with the index increasing to 64 from 59.6 in July 2020.

Figures from the US Department of Labor show that producer prices in the United States increased by 0.6 percent in July 2020 compared to June 2020. In June producer prices fell by 0.2 percent compared to May 2020. Economists had anticipated an increase of 0.3 percent. On an annual basis, producer prices increased by 0.3 percent in July 2020 compared to July 2019.

According to the Office for National Statistics in the UK, employment fell by 220,000 in the second quarter, the strongest decrease since 2009. The unemployment rate for the second quarter is 3.9 percent. Unemployment in the UK is expected to rise rapidly as of the end of October as several government job protection programs will end.

The 6M Euribor is unchanged at -0.42% compared to previous business day. The 10Y Swap increased with 5 basis points to -0.20% 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.