Market Information Friday 18 November 2022

Market Information Friday 18 November 2022

Russia and Ukraine prolong the grain deal. The deal ensures Ukraine can safely export agricultural products through Black Sea ports. Wheat prices fell after news of the deal being extended. At the Chicago Board of Trade -where the main contract for wheat is traded – the price fell 1.6% per bushel.

Consumer prices in the eurozone rose 10.6% in October, according to final figures published by Eurostat on Thursday. In September, the price increase was 9.9%. Core inflation, a key indicator for the ECB, was 5.0% year-on-year in October versus 4.8% in September.

The federal funds rate needs to rise to at least 5% and maybe as much as 7% to bring down inflation in the United States, St. Louis Fed president James Bullard said Thursday. According to Bullard, interest rates have not yet reached the level that can be considered “sufficiently restrictive”. The Federal Reserve has been rapidly raising interest rates this year, from zero to a current range of 3.75 to 4.00%.

The 6M Euribor increased with 1 basis point to 2.31% compared to previous business day. The 10Y Swap increased with 4 basis points to 2.76% 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.

Market Information Thursday 17 November 2022

Market Information Thursday 17 November 2022

U.S. retail sales increased more than expected in October as households stepped up purchases of motor vehicles and a range of other goods, suggesting consumer spending picked up early in the fourth quarter, which could help to support the economy. The solid retail sales reported by the Commerce Department on Wednesday and signs of a slowdown in inflation raised cautious optimism the economy could avoid an anticipated recession next year or just experience a mild downturn.

Portugal expects economic growth of at least 6.7% this year, beating its 6.5% forecast on the back of domestic demand and tourism, helping the country further slash one of Europe’s heaviest public debt burdens, its finance minister told Reuters. Despite a negative outlook for European economies, he expected Portugal to avoid a contraction in the fourth quarter, thanks to an extra 2.4 billion euros ($2.5 billion) in aid for families since October to tackle inflation.

Grayscale Bitcoin Trust, the world’s largest bitcoin fund, fell almost 7% on Wednesday, as investors dumped more digital assets after last week’s high-profile unraveling of crypto exchange FTX. Crypto investment bank Genesis Global Trading said in a tweet it was suspending redemptions and new loan originations in the wake of FTX’s collapse, which has given cryptocurrencies another hammering this year.

The 6M Euribor decreased with 4 basis points to 2.30% compared to previous business day. The 10Y Swap decreased with 9 basis points to 2.72% 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.

Market Information Wednesday 16 November 2022

Market Information Wednesday 16 November 2022

The Dutch economy contracted slightly by 0.2 percent in the third quarter compared to the second quarter. Investment fell 1.7 percent quarter-on-quarter in the third quarter. Furthermore, government consumption fell fractionally, while households spent 0.1 percent more than in the second quarter of 2022. Exports and imports of goods and services rose 0.9 and 1.0 percent, respectively.

The euro continues to rise against the dollar. The Euro traded around $1.04 on Tuesday, after the currency benefited not only from a beneficial U.S. inflation figure that came out as early as Thursday, but also from diminishing risks surrounding the war in Ukraine, the corona crisis, container prices and China.

Trading in the Japanese bond market, one of the largest in the world, has come to a halt several times in the past month. The Bank of Japan (BoJ) has been conducting interventions in the 10-year market for some time to keep interest rates from rising above 0.25%. These interventions should stimulate the economy, which unexpectedly contracted in the third quarter. Because of these large-scale interventions, interest rates do not reflect real interest rates.

The 6M Euribor increased with 5 basis points to 2.34% compared to previous business day. The 10Y Swap decreased with 6 basis points to 2.81% 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.

Market Information Tuesday 15 November 2022

Market Information Tuesday 15 November 2022

Eurozone industry produced more in September than a month earlier. Production rose 0.9 percent in September compared to August. On an annual basis,  production in the Eurozone rose 4.9 percent in September.

The Netherlands is importing more and more goods from China. Last year, €48 billion worth of goods entered our country, compared to nearly €40 billion in 2020. Over two third of the total imported goods were immediately re-exported to other countries. In the first eight months of 2022, already €40 billion worth of goods was imported from China. In recent years, the Chinese share of imported goods has grown to about 10%, which roughly corresponds to the share of imported goods from Belgium every year.

While interest rates are rising in the United States and Europe, and many emerging countries are feeling the effects, Indonesia seems to be an exception. Last quarter, the economy grew 5.7% compared to the same period in 2021, and the forecast for the current year is 5.5%. That is a lot higher than the forecast for surrounding countries such as Thailand (3.2%), Japan (1.6%) and Singapore (3.6%). Inflation in Indonesia is relatively low and is expected to reach 4.7% for all of 2022.

The 6M Euribor decreased with 3 basis points to 2.29% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.87% 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.

Market Information Monday 14 November 2022

Market Information Monday 14 November 2022

Democrats have retained their majority in the US Senate. Republicans do have a majority in the House of Representatives. In both cases the differences are very small. In the Senate, the Democrats will receive at least 50 seats and the Republicans 49. One seat has yet to be determined in a so-called “run off” vote in the state of Georgia. But even if it goes to the Republicans and the split becomes 50 to 50, the Democrats with Vice President Kamala Harris as the deciding vote in an equal outcome, still have the majority.

The euro traded well above $1.02 on Friday after the release of, better than expected, inflation figures in the United States on Thursday afternoon.

The ailing crypto exchange FTX has filed for bankruptcy via a so-called ‘Chapter 11’ in the United States and CEO Sam Bankman-Fried is stepping down. This was announced Friday afternoon. FTX filed for bankruptcy in Delaware court.

The 6M Euribor decreased with 1 basis point to 2.32% compared to previous business day. The 10Y Swap increased with 8 basis points to 2.89% 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.