Market Information Friday 6 October 2023

In the Netherlands, the prices of existing homes increased by 1.7% in the third quarter compared to the previous quarter, prices are still 1.7% lower on an annual basis. This marks the second consecutive quarterly increase. The sale of new homes continues to lag, primarily due to rising interest rates affecting borrowing capacity. Despite a slight increase in confidence and activity in the market, rising interest rates remain an obstacle for homebuyers, as emphasized by the Dutch Association of Realtors (NVM). It remains crucial to increase supply to meet demand.

The Italian parliament has given the green light for a revision of the controversial bank tax, despite opposition from investors. Under the leadership of Prime Minister Giorgia Meloni’s right-wing government, a plan to tax bank profits received support, with an announced 40% tax on excess profits resulting from ECB interest rate hikes in August. The revision means that banks will have the option to reduce taxation by setting aside additional capital reserves. The parliamentary approval marks the end of weeks of political negotiations and follows the announcement of the bank tax last summer, which led to significant market value losses for Italian banks. The amendment received support from Forza Italia.

In August, data from the French statistical agency Insee revealed that industrial production in France decreased by just 0.3 percent on a monthly basis, which was slightly less than economists’ expectations of a 0.5 percent decline. In July, production increased 0.5 percent, revised from an initially reported 0.8 percent growth. The manufacturing sector experienced a 0.4 percent decline in August, following a 0.4 percent growth in July, also revised down from an earlier reported 0.7 percent increase.The 6M Euribor is unchanged at 4.13% compared to previous business day. The 10Y Swap decreased with 5 basis points to 3.43% 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.