Market Information Wednesday 27 January 2021

The global economy is likely to recover from the corona crisis faster, according to the International Monetary Fund (IMF). The fund’s new forecasts are still very uncertain. The Washington organization believes that the global economy can grow by 5.5% in 2021, after a 3.5% contraction in 2020. The IMF forecast is substantially more positive than the previous estimate in October. At that time, the IMF expected a 4.4% contraction in 2020, followed by a 5.2% recovery in 2021. IMF chief economist Gita Gopinath also points out that the pace of the recovery differs between countries.

The European Central Bank (ECB) will keep a close eye on credit risks at banks in the coming period. News agency Bloomberg reports this based on information from insiders. The regulator is trying to find out whether banks can withstand a possible wave of defaults due to the corona crisis. The banks have already set aside significant amounts for loans that may not be repaid. The ECB is nevertheless concerned whether banks account for these credit risks sufficiently. If government support measures were to be phased out, the banks would face unforeseen circumstances.

US consumer confidence in the economy slightly increased in January compared to a month earlier according to the announcement of market researcher Conference Board. The indicator recorded a level of 89,3 in January against a revised level of 87.1 in December. Economists had anticipated a reading of 89.

The 6M Euribor increased with 1 basis point to -0.52% compared to previous business day. The 10Y Swap increased with 2 basis points to -0.21% 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.