Market Information Friday 11 November 2022

Market Information Friday 11 November 2022

US consumer prices rose 7.7% year-on-year in October, lower than the 7.9% forecast and 8.2% in September. On a monthly basis, prices rose again by 0.4%, the same as a month earlier, while the forecast was for a 0.6% increase. The inflation news made Wall Street euphoric and sent the US stock market sharply higher on Thursday, marking its best day since April 2020.

Canada’s red-hot labor market can weather an economic slump without seeing a major surge in unemployment, the central bank said on Thursday, ahead of another expected interest rate increase. The Bank of Canada has lifted rates by 350 basis points since March, one of its fastest tightening cycles ever, and Governor Tiff Macklem has not ruled out another oversized hike at the next meeting on Dec. 7. Because of the tight labor market and an exceptionally high number of vacant jobs, the economy could decrease without causing a surge in unemployment.

The Bank of Mexico, Banxico, hiked its key interest rate by 75 basis points to a record 10.0% on Thursday, in line with forecasts and following in the footsteps of the U.S. Federal Reserve’s recent three-quarters of a percentage point increase. The bank has raised its target rate by 600 basis points since June 2021, as inflation has blown past Banxico’s target rate of 3%, plus or minus one percentage point. Although some inflation shocks show signs of subsiding, the balance of risks remains tilted to the upside, the central bank said.

The 6M Euribor increased with 1 basis point to 2.33% compared to previous business day. The 10Y Swap decreased with 13 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 Thursday 10 November 2022

Market Information Thursday 10 November 2022

Cryptocurrencies saw a second day of sharp declines on Wednesday, as crypto investors continued to fret about the stability of the sector and the financial health of major exchange FTX despite plans for a rescue by bigger rival Binance. Crypto giant Binance signed a nonbinding agreement on Tuesday to buy FTX’s non-U.S. unit to help cover a “liquidity crunch” at the rival exchange.

Brazil’s Economy Ministry predicted on Wednesday a GDP growth range in 2023 between 1.4% to 2.9%, arguing that the economy’s structural growth is now higher than seen in the recent past. The Ministry’s Economic Policy Secretariat stated in a report that the persistence of forecast errors for the Brazilian GDP in the last three years may indicate a change in the growth trend, drawing attention to the positive effects in the short term of a higher investment rate.

Euro zone interest rates slipped on Wednesday. Investors await key U.S. inflation data, published today, and the results of the U.S. midterm elections.

The 6M Euribor increased with 2 basis points to 2.32% compared to previous business day. The 10Y Swap decreased with 12 basis points to 2.94% 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 9 November 2022

Market Information Wednesday 9 November 2022

Confidence among small business owners in the United States fell in October. This was revealed on Tuesday by figures from the National Federation of Independent Business (NFIB). The confidence index decreased to 91.3 last month from 92.1 in September.

Retail sales in the eurozone increased slightly in September, according to figures published on Tuesday by European statistics agency Eurostat. On a volume basis, retail sales increased 0.4% month-on-month in September. In August, volumes were flat. On a year-on-year basis, retail sales in the eurozone were still down 0.6% in September.

Consumer prices in China increased at a slower pace in October. This was revealed on Wednesday by figures from the Chinese statistics bureau. On a year-on-year basis, prices increased by 2.1% after a 2.8% plus in September and 2.5% in August. For October, economists were counting on a 2.3% rise. On a monthly basis, consumer prices increased by 0.1% in October after a 0.3% plus in September.

The 6M Euribor increased with 2 basis points to 2.30% compared to previous business day. The 10Y Swap decreased with 9 basis points to 3.06% 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 8 November 2022

Market Information Tuesday 8 November 2022

Yesterday, the dollar decreased versus the euro, which caused the currency pair to come close to parity again. The euro went from 0.98 to near parity and Monday morning even reached parity very briefly. This morning the euro/dollar increased to 0.9994.

Consumer prices in the Netherlands rose slightly less in October than in September. Last month’s annual inflation rate was 14.3 percent, following a 14.5 percent price increase in September. Inflation was 12.0 percent in August and 10.3 percent in July. Prices have been rising since July 2021, when inflation was 1.4 percent.

France is demanding that the European Union responds quickly to U.S. President Joe Biden’s climate bill. The country is concerned about several provisions in the Inflation Reduction Act that give companies tax benefits if certain products are made in U.S. factories. This would discourage investment in the EU and favor U.S. companies.

The 6M Euribor increased with 5 basis points to 2.28% compared to previous business day. The 10Y Swap increased with 1 basis point to 3.15% 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.

Market Information Monday 7 November 2022

Market Information Monday 7 November 2022

German industrial production increased in September, according figures from Destatis, the Federal Statistical Office of Germany. Production, adjusted for seasonal influences and working days, was 0.6 percent higher in September than a month earlier. In August, production fell by 1.2 percent. Year-on-year, industrial production rose 2.6 percent in September, after rising 1.6 percent in August.

On 1 November, more than 2.3 million active companies were registered with the Chamber of Commerce in The Netherlands. That is a growth of 5.5% compared to a year earlier. There are still a lot more companies starting, despite the economically uncertain period.

The number of transactions on the Dutch real estate market is declining rapidly due to the rising interest rates. Investors are hesitant about buying office buildings and shops, for example, due to the uncertainty in the financial markets and concerns about a recession.

The 6M Euribor increased with 3 basis points to 2.23% compared to previous business day. The 10Y Swap increased with 3 basis points to 3.14% 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.