Market Information Thursday 26 September 2024

The Swedish Riksbank lowered interest rates by 25 basis points to 3.25% and indicated further cuts could occur in the last two meetings of 2024 and possibly one or two more in early 2025. This decision reflects a stronger economy and inflation nearing the target level. The central bank noted that the pace of rate cuts is faster than previously communicated.

Commerzbank, a key lender to Germany’s Mittelstand companies, is resisting UniCredit’s attempt to increase its stake to 21%, despite support from some German SME leaders who believe a merger could improve competitiveness. While political leaders and unions oppose the move, arguing it threatens local jobs and control, business groups highlight the potential benefits of scale and profitability in a cross-border merger. The debate underscores broader concerns about Europe’s competitiveness against global rivals.

Iron ore rallied for a second day, rising nearly 6% on expectations that China’s new stimulus package would boost demand, particularly in the real estate sector. Despite this short-term surge, iron ore remains down over 20% since May due to China’s economic slowdown and ample supply from Brazil and Australia.

The 6M Euribor decreased with 1 basis point to 3.20% compared to previous business day. The 10Y Swap increased with 2 basis points to 2.42% 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.