Market Information Friday 29 November 2024

German inflation remained unchanged at 2.4% in November, below expectations, as moderating food costs offset energy effects. The data strengthen the case for the ECB to cut interest rates further, with a reduction in December seen as likely, though officials remain cautious about balancing lowering rates with persistent inflation in services. The Bundesbank anticipates temporary inflation pressures into early 2025 but expects a decline by spring.

Norway’s DNB Bank plans to expand its use of significant risk transfers (SRTs) to reduce credit risk, following its first SRT deal involving a $1.6 billion loan portfolio tied to green projects. SRTs free up capital by transferring loan default risks to investors, enabling banks to increase lending while boosting solvency ratios. DNB joins other European banks in adopting SRTs, which attract strong demand from institutional investors like hedge and pension funds.

Oil prices held steady during the US Thanksgiving holiday, with West Texas Intermediate trading below $69 and Brent above $73, as markets anticipate an OPEC+ meeting delayed to December 5 to discuss production cuts amid glut concerns. US crude inventories dropped by 1.8 million barrels last week, ending a three-week rise. Analysts expect muted price action barring geopolitical developments.

The 6M Euribor increased with 1 basis point to 2.69% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.20% 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.