Market Information Wednesday 29 July 2020

Consumer confidence in the US economy declined sharply in July compared to a month earlier, according to the Conference Board’s report on Tuesday. The index reflecting confidence reported a reading of 92.6 in July 2020, from an adjusted 98.3 in June 2020. This is the strongest decline since March 2020. Economists had expected a reading of 94.5.

The European Central Bank (ECB) announced that the advice to banks to refrain from paying dividends or share buy backs will be extended until January 2021. Banks are also expected to moderate variable remuneration in order to maximize available capital. The supervisor further encourages banks to continue using their capital and liquidity buffers for lending and loss absorption. Recovery of those buffers is expected from mid-2022 onwards.

The Federal Reserve has decided to extend most of its emergency lending programs created to mitigate the economic impact of the corona virus by three months. Initially, the programs would expire on September 30. The extension is in line with expectations as Fed-officials previously indicated that facilities would be maintained for as long as necessary.

The 6M Euribor decreased with 1 basis point to -0.38% compared to previous business day. The 10Y Swap decreased with 2 basis points to -0.24% 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.