Market Information Friday 13 September 2024

The European Central Bank (ECB) has reduced its deposit facility rate by 25 basis points to 3.50%, citing moderating inflation and labor cost pressures, while maintaining a cautious stance to ensure inflation returns to its 2% target. The ECB staff forecasts inflation to average 2.5% in 2024, gradually declining to 1.9% by 2026, with core inflation expected to ease as well. The ECB remains committed to a data-driven approach for future rate decisions and will maintain restrictive policies as long as necessary, while scaling back asset purchase programs and managing refinancing operations accordingly.

Oil prices rose nearly 2% due to disruptions from Hurricane Francine, affecting production capacity of 670,000 barrels a day in the Gulf of Mexico. However, crude remains lower this year as concerns about slowing demand, especially from China, persist. The IEA predicts a potential oil surplus in 2024, reinforcing market caution despite recent gains.

Moderna plans to launch ten new drugs over the next three years while reducing its research and development budget to $3.6-$3.8 billion by 2027, down from $4.8 billion. The company also revised its 2024 revenue forecast to $2.5-$3.5 billion, marking the second time this year it has lowered its outlook. Investors reacted negatively to the news, causing Moderna’s stock to fall by over 18%, reaching its lowest level of 2024.

The 6M Euribor decreased with 4 basis points to 3.31% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.40% 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.