Market Information Friday 30 October 2026

The Federal Reserve kept its policy rate unchanged at 3.75% to 4.00%, despite two policymakers supporting an immediate increase. Persistent inflation and resilient economic activity kept the outlook restrictive, with markets pricing an approximately 80% probability of a December rate hike and expecting further tightening in 2027. The decision pushed the 10-year Treasury yield to around 5.02%, maintaining pressure on borrowing costs and financial markets.

The European Central Bank kept its deposit rate unchanged at 2.5%, balancing persistent inflationary pressures against weaker economic growth. Eurozone inflation reached 3.8%, its highest level since September 2023, while rising sovereign borrowing costs have added pressure across European markets. Investors currently assign a roughly 67% probability to another ECB rate increase in December.

US technology stocks came under sharp pressure as investors questioned whether rapidly increasing AI investment can generate sufficient returns, contributing to a 1.5% decline in the Nasdaq. Alphabet lost around $500 billion in market value in a single session after quarterly AI-related capital expenditure exceeded $50 billion and free cash flow turned negative. The sell-off reflects increasing investor scrutiny of the balance between AI-driven growth, rising financing requirements and cash generation.

The 6M Euribor decreased with 3 basis points to 2.96% compared to previous business day. The 10Y Swap decreased with 1 basis point to 3.46% 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.