Consumer prices in the eurozone decreased by 0.2 percent in August 2020 compared to August 2019. On a monthly basis, prices decreased by 0.4 percent in August 2020 compared to July 2020, according to figures published by Eurostat on Thursday.

The European Central Bank (ECB) has decided on Thursday to loosen capital requirements for banks due to the corona crisis. Large banks in the eurozone no longer need to include certain assets they deposit with the ECB to determine their unweighted capital buffer. As a result, the average leverage ratio of these banks would increase by approximately 0.3 percentage point from the current average of 5.36 percent.

In Germany, producer prices decreased by 1.2 percent in August 2020 compared to August 2019. On a monthly basis, the price level remained the same. This follows from figures published by Destatis, the German statistical office, on Friday. In July 2020, producer prices decreased by 1.7 percent compared to June 2019. From June 2020, there was a slight increase in prices of 0.2 percent in July 2020.

The 6M Euribor is unchanged at -0.46% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.23% 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.

Market Information Thursday 17 September 2020

Market Information Thursday 17 September 2020

Unemployment in the Netherlands increased further in August 2020. According to figures of Statistics Netherlands (CBS), 426,000 people were unemployed last month, which is equivalent to 4.6% of the labor force. In July 2020 this was still 4.5%.

The Dutch state is expected to borrow less this year than previously forecast. Because the contraction of the Dutch economy is lower in the new estimates, the predicted deficit for the government will also be lower. In addition, the support measures against the corona crisis have a lower impact on the budget than previously thought. According to the General Treasury Agency of the Ministry of Finance (DSTA), the Netherlands will issue a total of EUR 110.7 billion this year on the money and capital markets, compared to EUR 138.8 billion expected at the end of June.

The European Commission has not approved the Dutch plans to subsidize environmentally friendly hydrogen production. Eric Wiebes, Minister of Economic Affairs and Climate, announced this to the Lower House on Monday. This marks the end of the government’s plans to use hydrogen to reduce greenhouse gas emissions. For heavy industry, hydrogen can serve as a replacement for oil, natural gas and coal. However, the European Commission states that a lot of sustainable electricity is needed to make hydrogen green. In the Netherlands a lot of electricity is still generated by natural gas and coal, and the production of hydrogen will only increase CO2 emissions.

The 6M Euribor is unchanged at -0.46% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.22% 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.

Market Information Wednesday 16 September 2020

Market Information Wednesday 16 September 2020

Industrial production in China increased more than expected in August. According to China’s National Statistics Office, production increased with 5.6 % year-on-year compared to 4.8 % a month earlier. Economists had anticipated an increase of 5.1 %. Retail sales were up 0.5 % year-on-year, from a decline of 1.1 % a month earlier. The retail sector has been severely affected by the lockdown and sales were expected to remain the same.

German investors’ confidence in the future unexpectedly increased in September, according to the ZEW index released yesterday. Economists expected the index to decrease to a reading of 69.5 but the index increased to 77.4 from 71.5 a month earlier. The index that measures confidence in the current situation was still negative at 66.2 from minus 81.3 in August. According to the research institute, expectations for the Eurozone economy also improved in August, increasing to a reading of 73.9 from 64 in August.

According to the Federal Reserve, industrial production in the United States increased with 0.4 % in August from an adjusted 3.5 % a month earlier. Economists had anticipated an increase of 1 % on a monthly basis. The occupancy rate in the United States was reported at 71.4 % in August from a revised 71.1 % in July.

The 6M Euribor is unchanged at -0.46% compared to previous business day. The 10Y Swap is unchanged at -0.21% 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.

Market Information Tuesday 15 September 2020

Market Information Tuesday 15 September 2020

According to a monthly report from the Organization of Petroleum Exporting Countries (OPEC), global demand for oil is dropping more than previously predicted. In addition, due to the corona pandemic, next year’s demand is recovering less quickly than expected. Oil demand is expected to fall by 9.46 million barrels a day this year, while OPEC predicted a fall of 9.06 million barrels a day a month ago. The use of oil in 2021 is expected to increase by 6.62 million barrels per day, 370,000 barrels less per day than previously expected.

More flexible EU rules for take-off and landing rights will probably apply for airlines throughout the winter. As a result, they will not lose their so-called slots because of insufficient usage due to the corona crisis. The European Commission has already accepted the flexible rules since last March and accepts an extension until March 27, 2021.

After the increase in May and June, production in the eurozone industry continued to increase in July. Further easing of lockdown measures boosted the industry. According to European statistics office Eurostat, production increased by 4.1% compared to June. However, production was still significantly lower than in July 2019, down 7.7% year-on-year.

The 6M Euribor is unchanged at -0.46% compared to previous business day. The 10Y Swap is unchanged at -0.21% 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.

Market Information Monday 14 September 2020

Market Information Monday 14 September 2020

Inflation in the United States rose to 1.3 percent on an annual basis in August, compared to 1 percent in July, as announced by the US government. The rise in the average price level was slightly stronger than economists expected. They expected on average an inflation rate of 1.2 percent.

Due to the corona crisis, Dutch exports still contract, according to the Statistics Netherlands (CBS). Exports fell by 0.6 percent on an annual basis in July. However, exports have shown some recovery in comparison to the previous months.

Iraq is lowering selling prices for its crude oil to customers in Asia and the United States, following price cuts by Saudi Arabia and other producers in the Gulf region. The oil deliveries are scheduled for October. The price cuts by the oil-producing countries may indicate that oil demand is recovering less than expected from the effects of the corona crisis.

The 6M Euribor is unchanged at -0.46% compared to previous business day. The 10Y Swap decreased with 4 basis points to -0.21% 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.