Market Information Monday 05 October 2026

Trade tensions between China and the EU are escalating ahead of high-level negotiations, with China launching an antidumping investigation into European chemical imports after claiming prices fell by a cumulative 60% between 2022 and 2025. The dispute reflects wider concerns over Chinese industrial overcapacity and growing use of trade defence measures on both sides. Attention is also focused on the EU’s €103bn trade deficit with China in the second quarter of 2026 and the prospect of tougher European trade actions.

Asian equities advanced after weaker US labour market data reinforced expectations of a more accommodative monetary policy stance. The euro weakened against the dollar amid pressure in European bond markets, offsetting part of the benefit from lower oil prices. Attention now turns to third quarter earnings, while technology stocks continued to outperform, helping major indices remain near record highs.

Rising US Treasury yields are fuelling concerns over fiscal sustainability, with the 10 year yield above 5% and net interest costs reaching roughly $1.05tn in the first 11 months of fiscal 2026. However, economists argue a fiscal crisis is not imminent, as nominal GDP growth of 8.5% still exceeds the average interest rate on government debt of around 3.4%. Higher yields appear to reflect both strong economic activity and debt concerns, with markets watching for signs that elevated borrowing costs begin to slow growth or pressure risk assets.

The 6M Euribor decreased with 3 basis points to 3.04% compared to previous business day. The 10Y Swap decreased with 3 basis points to 3.58% 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.