Market information Wednesday January 27th

Japanese stock markets closed with a big gain today, the Nikkei rose 2.7%. Chinese stock markets, however, showed a very different picture. Chinese indices were headed for their biggest losses over two trading days since last summer, but gradually managed to limit their losses. The Shanghai Composite Index eventually ended -0.4%.

Figures published by market researcher Conference Board showed that consumer confidence in the US increased in January 2016 compared to December 2015. The index that reflects the confidence rose from 96.4 in December, to 98.1 in January. The market expected the index would remain unchanged for this month.

A severe financial crisis, with shares falling up to 45% and real estate up to 50%, would bring the average funding ratio of European pension funds back to 60%. This is the results of a stress test done by 200 pension funds in 17 European countries. Dutch funds start at higher ratios but decline more than average in different shock scenarios. Possible consequences for the Netherlands are also heavier than elsewhere in Europe because the Netherlands have large pension funds.

To strengthen their capital buffer (Additional Tier 1) Dutch banks and insurers have in total attracted more than more than EUR 25 billion in hybrid capital in the form of contingent convertible (Coco’s). The decision of Finance Minister Jeroen Dijselbloem to make the costs of that particular form of equity tax deductible, will save banks EUR 350 million in tax payments and insurance EUR 180 million. This followed from answers Dijselbloem has given to the European Commission. Earlier, the decision of Dijselbloem has led to a lot fuss when it appeared that ING Bank had contributed to the decision.

The 6M Euribor decreased 1 basispoint to -0.08%. The 10Y Swap remained unchanged at 0.76%.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: