Market Information Friday 25 July 2025

At the 25th EU-China summit, European Commission President von der Leyen urged for a more balanced trade relationship with China, highlighting the EU’s growing trade deficit and concerns over subsidized Chinese overcapacity flooding European markets. She stressed that fair competition, improved market access, and eased export controls on rare earths are essential to maintain Europe’s openness. Despite describing the talks as “constructive,” von der Leyen warned that without real progress, trade tensions—already heightened by tariffs on Chinese EVs and Beijing’s retaliatory probes—could escalate further. Chinese President Xi Jinping, meanwhile, emphasized deepening cooperation amid global geopolitical strains. With China’s goods-trade surplus with the EU up 21% year-on-year, the summit underscored both sides’ diverging priorities as Brussels pushes to “de-risk” while Beijing seeks to roll back EU restrictions.

Private credit is rapidly gaining momentum in Asia-Pacific, fuelled by widening funding gaps as traditional bank lending retreats and investors search for higher yields outside the saturated U.S. and European markets. Assets under management in the region surged to $62.3 billion in early 2024, up from $34.3 billion in 2017, as global players like Apollo and Hillhouse ramp up activity across Singapore, India, Japan, and Southeast Asia. With Asia driving over half of global GDP growth but lacking deep public debt markets, private credit funds are stepping in to provide bespoke financing—particularly to mid-market firms struggling to access bank loans. Analysts see long-term growth potential of up to $700 billion, especially in infrastructure, tech, and renewables, though investors must navigate fragmented regulations, currency risks, and transparency challenges.

India’s Commerce Minister Piyush Goyal signalled confidence that New Delhi will secure “preferential” tariffs in its ongoing trade talks with the U.S., aiming for terms better than those enjoyed by rivals like Japan and Vietnam. The negotiations, described as progressing “extremely well,” are part of a push to reach a $500 billion bilateral trade target by 2030. Goyal stressed that India is negotiating from a position of strength, highlighting its strategy of partnering with developed nations to complement its growth story. While sensitive issues—particularly in agriculture—remain, business leaders echoed optimism that both countries are motivated to strike a robust deal. The comments came as India and the U.K. formally signed a free trade agreement granting tariff-free access for 99% of Indian imports into Britain, marking a major milestone in India’s global trade expansion.

The 6M Euribor is unchanged at 2.03% compared to previous business day. The 10Y Swap increased with 2 basis points to 2.67% 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.