Market Information Wednesday 6 May 2020

On Tuesday, the German Constitutional Court (BVG) raised questions about the future of the European Central Bank’s monetary policy. In addition, the authority of the Court of Justice of the EU is called into question. The ruling states that the ECB must establish ‘reasonableness’ for the asset-purchase program within three months. If no action is taken, the German Bundesbank is not allowed to participate in the purchase program. The ECB responded to the ruling by pledging to continue doing everything necessary to revive inflation.

The U.S. Census Bureau reported that the US trade deficit widened to $ 44.4 billion in March as both exports and imports declined due to the impact of the corona virus. In February, the trade deficit was $ 39.8 billion. The reported trade deficit is in line with market expectations of a $ 44 billion gap. Exports declined in April with 9.6 percent to $ 187.7 billion and imports declined with 6.2 percent to $ 232.2 billion.

The Institute of Supply Management (ISM) published the Non-Manufacturing PMI for the United States in April. Economic activity declined in April for the first time since December 2009. The index fell from 52.5 in March to 41.8 in April, a decline of 10.7 points. The decrease was mainly due to a decline in the indices for business activities, new orders and employment. The only two industries that reported growth in April were Public Administration and Finance & Insurance.

The 6M Euribor increased with 1 basis point to -0.16% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.15% 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.