Market Information Wednesday 3 July 2024

Euro area inflation eased slightly to 2.5% in June, but services costs remained high at 4.1%, raising concerns among policymakers about persistent price pressures. Despite moderating energy and food costs, core inflation held steady at 2.9%, prompting debate over the timing of future interest rate cuts.

South Korea’s consumer inflation dropped to an 11-month low of 2.4% in June, below market expectations, as supply pressures eased. The decline provides relief for policymakers and raises expectations that the central bank may start cutting interest rates later this year.

UK shop price inflation slowed to 0.2% in June, the lowest since October 2021, as promotions on non-food goods and a 14th consecutive month of slowing food inflation helped ease price pressures. The cooling inflation provides some relief for shoppers and raises questions about potential interest rate cuts by the central bank.

The 6M Euribor is unchanged at 3.68% 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.