Market Information Tuesday 28 May

The European Central Bank (ECB) is set to lower interest rates from a record high of 4% at its upcoming June 6 meeting. The ECB now looks almost certain to be one of the first major central banks to cut rates, after being one of the last to raise them after the biggest inflation surge for a generation. ECB’s chief economist Philip Lane told the FT in an interview: “Barring major surprises, at this point in time there is enough in what we see to remove the top level of restriction.” This move precedes anticipated rate cuts by the FED and the Bank of England later in the summer.

On Monday, European Union governments officially approved a new regulation aimed at guaranteeing that the EU generates 40% of its solar panels, wind turbines, heat pumps, and other sustainable technology equipment. This initiative is crafted to bolster European industries in competing with counterparts in the U.S. and China. The Net Zero Industry Act (NZIA) is set to be enacted next month or in early July.

Spot gold held its ground at $2,349.89 per ounce, as of 0600 GMT, after rising about 1% in the previous session. U.S. gold futures were up 0.7% at $2,350.70.

The 6M Euribor is unchanged at 3.78% compared to previous business day. The 10Y Swap decreased with 4 basis points to 2.80% 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.