Market Information Tuesday 18 February 2020

Market Information Tuesday 18 February 2020

The United States government considers new trade restrictions to prevent Chinese access to important computer technology. According to The Wall Street Journal, the US Commerce Department will draft amendments for the so-called foreign direct product rule, which restricts foreign companies’ use of US technology for military or national-security products. Chip factories outside the US will then require a license in order to use that technology.

The Chinese central bank lowered an important interest rate, which could signify the prelude of lower standard interest rates. The central bank announced that the interest rate on its medium-term lending facility will be reduced from 3.25% to 3.15%. The lower interest rate is an attempt to support the Chinese economy, which suffers from the coronavirus outbreak.

The production of the Japanese industry in December 2019 increased, but at a lower rate than initially expected. This was shown by final figures from the Japanese ministry of Commerce. The industrial production in Japan increased in December by 1.2% on a monthly base. Economists expected an increase of 1.3% on a monthly base.

The 6M Euribor is unchanged at -0.36% compared to previous business day. The 10Y Swap is unchanged at -0.05% 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 17 February 2020

Market Information Monday 17 February 2020

According to the European Statistical Office, Eurostat, the euro area economy increased by 0.1% in the fourth quarter compared to the previous quarter. Compared to a year earlier, the euro area economy increased by 0.9%. For the European Union, Eurostat reported a quarterly growth of 0.1% and 1.2% compared to a year earlier.

New figures provided by the Japanese authorities show that the Japanese economy contracted by 6.3% year-on-year in the fourth quarter of 2019. A tax hike caused a decline in business and consumer spending. The outlook for the economy is not very optimistic because of the outbreak of the coronavirus.

The United States is going to increase the import tax on European-built aircraft to 15% as of March 18th. At the moment, an import levy of 10% applies. The World Trade Organization (WTO) determined last year that Washington may impose USD 7.5 billion in punitive tariffs on European goods, because the EU continued to stop illegal subsidies according to the US Airbus.

The 6M Euribor is unchanged at -0.36% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.05% 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 13 February 2020

Market Information Thursday 13 February 2020

Based on provisional figures from Statistics Netherlands, the Dutch economy grew by 0.4% in the fourth quarter of 2019 compared to a quarter earlier and in line with the previous three quarters. Growth in the fourth quarter was attributed to domestic consumption, investment and the trade balance. The growth rate for the full year 2019 was 1.7%.

Statistics Netherlands reported that the Dutch retail trade revenues increased with 3.4% in 2019 compared to 2018. The sales volume in 2019 was approximately 2.5% higher than in 2018. A turnover increase was achieved both at food stores (1.3%) as non-food stores (2.9%). Online revenues were 17% higher 17% in 2019 than in 2018.

Destatis reported that inflation in Germany has risen from 1.5% on an annual basis in December 2019 to 1.7% on an annual basis in January 2020. This brought inflation to the highest level in nine months. Based on the European harmonized measurement method, inflation was 1.6% on an annual basis in January, compared to 1.5% in December.

The 6M Euribor is unchanged at -0.35% compared to previous business day. The 10Y Swap increased with 1 basis point to -0.02% 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 12 February 2020

Market Information Wednesday 12 February 2020

In the European Parliament the new ECB President Christine Lagarde announced yesterday that central banks should pay more attention to the effects and risks of climate change and the transition to a climate-neutral economy, in addition to the traditional task of monitoring price stability. Last month, the bank launched a large-scale review of its monetary policy, which should be completed by the end of this year.

The number of bankrupt companies in the Netherlands has increased according to Statistics Netherlands (CBS). Compared to December, 28 more companies were declared bankrupt in January. In total, 268 companies were declared bankrupt in January. With 59 companies trade had the highest number of bankruptcies of all industries.

New figures from Statistics Netherlands show that the average selling price of an existing owner-occupied house is EUR 200,000 or lower in only fourteen Dutch municipalities. In 2018, in thirty municipalities the average price of a house was less than EUR 200,000. Nationwide, the average price of a house in the Netherlands reached a historical record of EUR 308,000 in 2019.

The 6M Euribor decreased with 1 basis point to -0.35% compared to previous business day. The 10Y Swap increased with 2 basis points to -0.03% 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 11 Februari 2020

Market Information Tuesday 11 Februari 2020

Fear for the coronavirus at stock exchanges pushes the price of gold. Press bureau Bloomberg announced that the price of gold has increased yesterday for the fourth consecutive business day. The price of a troy ounce of gold (31.1 grams) reached the highest level since 2013 at USD 1,573. During turbulent times on stock markets, the precious metal is often regarded as a safe option. The prices of other precious metals such as palladium, platinum and silver have also increased.

Inflation in China in January increased as a result of the higher food prices. According to figures from the Chinese National Bureau of Statistics, the inflation increased from 4.5% on yearly base in December to 5.4% in January. This is the highest level in eight years. The higher food prices are the result of the Chinese New Year, the outbreak of the coronavirus and the outbreak of African swine fever which caused the increase of the price of pork.

According to press bureau Bloomberg, the Libyan economy is the main subject since Sunday at a conference of the United Nations in Cairo. The summit started three weeks after the blockades of the harbours and oil production installations started in Libya. The country possesses the largest oil reserves in Africa, but only produces 180,000 barrels of oil per day as a result of the blockades from militias that devastate the country. In the begin of January the daily production amounted up to 1.2 million barrels.

Following ING and ABN Amro, the Rabobank initiated negative interest towards wealthy clients. Both business and private clients with more than EUR 1 million on their account will pay 0.5% interest on their capital as of 1 May.

The 6M Euribor is unchanged at -0.34% compared to previous business day. The 10Y Swap decreased with 4 basis points to -0.05% 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.