Market Information Wednesday 31 July 2019

Based on preliminary statistics from the German Federal Statistical Office inflation in Germany in July 2019 increased to 1.7 percent on an annual basis compared to 1.6 percent on an annual basis in June 2019. Economists generally expected an inflation rate of 1.5 percent.

The European Commission (EC) reported that eurozone consumer confidence fell in July 2019 compared to previous month. The indicator decreased from 103.3 in June to 102.7 in July, the lowest level in more than three years. According to the EC, the reduction in confidence was caused by developments in the industrial and construction sectors.

The Federal Reserve is expected to reduce its policy interest rate today for the first time in more than ten years. Analysts expect the policy committee to decide on a decrease of 25 basis point to a bandwidth of 2.00 and 2.25 percent. Although the American economy has been performing well for years, there are concerns about several risks. The main risks are the continuing trade war with China and tensions with other trading partners, such as the European Union and Mexico.

The 6M Euribor increased with 1 basis point to -0.35% compared to previous business day. The 10Y Swap is unchanged at 0.05% 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.