Market Information Monday 25 August 2025

Germany’s economy shrank by 0.3% in the second quarter, a sharper decline than initially estimated, mainly due to weak manufacturing and investment. Economists warn that a substantial recovery is unlikely before 2026, though upcoming fiscal expansion and lower ECB interest rates may bring modest support. The government stresses the need for deep structural reforms to boost growth.

Private equity funds are struggling to raise new capital, collecting just $592 million in the year to June, which is the lowest level in seven years. Despite offering fee discounts and favourable terms, investor appetite has weakened, partly because funds are locked in existing investments and returns are delayed. European-focused funds are holding up better than those targeting the US, where inflows have fallen sharply.

Starting September 1, Canada will remove billions of dollars in tariffs on US goods in an effort to ease trade tensions with Washington. Prime Minister Mark Carney said that over 85% of Canada-US trade will be tariff-free, though duties on steel and aluminium will remain in place. The decision comes after months of trade frictions sparked by Trump’s import measures, with both sides expressing willingness to continue talks.

The 6M Euribor decreased with 1 basis point to 2.08% compared to previous business day. The 10Y Swap decreased with 4 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.