Market Information Wednesday 2 September 2020

Consumer prices in the eurozone decreased in August compared to a year earlier according to the European statistical office Eurostat. Inflation in the euro area is negative for the first time since 2016 with a level of -0.2 %. The negative inflation in the eurozone was unexpected, economists had anticipated an increase of 0.2 %. The core inflation, corrected for the strongly fluctuating prices for energy and food and beverages, amounted to 0.4 percent compared to 1.2 percent in July.

In addition, Eurostat reports that unemployment in the eurozone continued to rise in July. According to the statistics office, the unemployment rate was 7.9 % from an adjusted 7.7 % in June. Economists had expected an increase of 8 %. For the entire European Union, the unemployment rate was 7.2 % against 7.1 % in June.

Market researcher ISM reports that industry activity in the United States increased in August compared to a month earlier. The purchasing managers index (PMI) recorded a reading of 56 for August, against 54.2 in July. A level of 50 or more indicates growth. Economists had anticipated a reading of 54.8.

The 6M Euribor decreased with 1 basis point to -0.45% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.16% 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.