The European economy is expected to enter a deeper recession than the European Commission expected two months ago. According to a new forecast from the European Commission, a contraction of 8.7% is expected in the eurozone. In May, the economy was expected to contract by 7.7%. This difference is mainly caused by the significant downward revision of the figures of the severely affected southern EU Member States. Vice-President Valdis Dombrovskis stated that the economic impact of the lockdown was more severe than initially estimated.
According to figures from Destatis, the German statistical office, German industrial production increased by 7.8% in May compared to the previous month. In April there was an unprecedented contraction of 17.5% which, as a result of corona measures, led to factory closures. On average, economists had expected a stronger recovery of 11.1% on a monthly basis.
Dutch minister of finance Wopke Hoekstra is preparing a bill to oblige auditors to audit the annual financial statements of companies listed on the stock exchange. Auditors are now allowed to refuse them as clients, and this threatens to bring a number of small stock exchange funds into financial trouble, Dutch newspaper Financieele Dagblad reports. Preparations for a bill will start after the summer.
The 6M Euribor is unchanged at -0.31% compared to previous business day. The 10Y Swap is unchanged at -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.
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