Market Information Thursday 13 February 2025

US inflation rose unexpectedly to 3% in January, prompting the Federal Reserve to adopt a cautious approach to interest rate cuts. The increase exceeded economists’ predictions and altered market expectations for future Fed actions. The data has heightened concerns about economic overheating, with broad tax cuts and tariffs intensifying worries about further inflation.

The EU plans to shorten the settlement time for stock, bond, and fund trades to a single day starting in October 2027. This transition to T+1 settlement seeks to reduce margin requirements and costs, while boosting the attractiveness of EU capital markets for domestic and international investors. The shift reflects a broader global trend toward shorter settlement times, with some countries considering even faster, same-day settlements.

Chinese technology stocks have surged into a bull market, with the Hang Seng Tech index rising over 20% in the past month, driven by renewed investor interest following DeepSeek’s AI breakthrough. The AI model prompted a global reassessment of Chinese tech companies, boosting stocks of major tech firms. This positive sentiment contrasts with challenges faced by China’s broader markets and reflects a shift in perception toward Chinese innovation and tech adoption.

The 6M Euribor increased with 1 basis point to 2.48% compared to previous business day. The 10Y Swap increased with 4 basis points to 2.41% 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.