Market Information Tuesday 19 November 2024

A study by the San Francisco Fed shows that the tight U.S. labor market’s contribution to inflation has eased since 2022-2023 but still adds 0.3-0.4% to inflation as of September 2024. While decline in excess demand dropped inflation by nearly 0.75% in two years, the labor market remains a factor. Fed policymakers are debating future rate adjustments, with inflation at 2.3% in October, above the 2% target.

The IMF has warned that escalating “tit-for-tat” tariffs, including planned U.S. tariffs on Chinese imports, could undermine Asia’s economic prospects by raising costs and disrupting supply chains. Despite Asia’s stronger growth outlook compared to global projections, trade tensions risk longer supply chains, inflation pressures, and financial instability as global monetary policy shifts.

China has cemented its influence in Latin America with the $3.5 billion Chancay megaport in Peru, enabling faster trade routes to Asia. This project, a sign of China’s growing assertiveness, will handle goods from across South America while cutting shipping times. Experts warn the U.S. is losing its grip on the region as China’s economic presence expands.

The 6M Euribor decreased with 2 basis points to 2.75% compared to previous business day. The 10Y Swap increased with 3 basis points to 2.32% 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.