Market Information Friday 27 September 2024

Brazil’s central bank raised its 2024 GDP growth forecast to 3.2%, driven by strong household consumption and investment, though inflation risks persist. Policymakers began an open-ended cycle of interest rate hikes, with the Selic rate increased to 10.75%. Rising wages may prompt further rate hikes, with borrowing costs expected to reach 11.75% by 2025.

Oil prices dropped for the second day as Saudi Arabia plans to increase output and Libya moved to revive crude production. West Texas Intermediate fell about 3% to $67 a barrel, with Brent near $71, as Saudi Arabia shifted focus to regaining market share. Additionally, global oil markets are expected to be oversupplied next year, even with extra OPEC+ supply, due to surging production outside the group.

Copper surged above $10,000 a ton and iron ore topped $100 as China’s leaders intensified efforts to boost economic growth, including potential rate cuts and a $142 billion bank capital injection. The rally was fueled by optimism around China’s real estate market and U.S. economic resilience, boosting mining stocks. Despite the gains, policy risks from the U.S. and global growth concerns still cloud the metals’ outlook.

The 6M Euribor decreased with 4 basis points to 3.16% compared to previous business day. The 10Y Swap is unchanged at 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.