Market Information Tuesday 6 August 2024

Global stock markets plunged, driven by tech share losses. Nasdaq 100 Index futures decreased with more than 4.0%, and Japanese equities reached their largest decline in a decade. Concerns about a United States (US) economic slowdown increased, prompting speculation of an emergency interest rate decrease of the Federal Reserve (Fed). The dollar weakened, the 10-year Treasury yield hit a yearly low, and the CBOE Volatility Index surged to its highest since 2020. Japanese markets saw intensified selling, causing a increase of JPY by 3.0% and a 12.4% decrease in the Topix stock index, marking the steepest single-day drop recorded since 1987.

Oil prices decreased to a seven-month low amid broader financial market selloffs. Brent futures approached USD 75 a barrel, their lowest since January, and WTI dropped below USD 72. Concerns about the global economic outlook, particularly in China, have impacted the oil market. Fears of a US recession are central. Meanwhile, Saudi Arabia raised its crude oil price to Asia, and the market is on alert for potential attacks by Iran and militias on Israel. The US has sent defensive reinforcements to the region.

Australia’s central bank maintained interest rates at a 12-year high of 4.35%, continuing this approach for the sixth consecutive meeting. The Reserve Bank of Australia (RBA) is awaiting a reduction in persistent inflation before considering any alignment with global trends towards monetary easing. The bank prioritizes reducing consumer prices while preserving employment gains achieved since the pandemic. Core inflation remains elevated at 3.9%, mainly due to essential expenditures like insurance, education, and housing rent.

The 6M Euribor decreased with 1 basis point to 3.55% compared to previous business day. The 10Y Swap increased with 2 basis points to 2.52% 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.