Market Information Friday 27 November 2020

Market Information Friday 27 November 2020

The European Central Bank (ECB) is concerned about the deteriorating outlook for funding in the eurozone. ECB chief economist Philip Lane said on Thursday that the ECB will recalibrate its instruments as needed to ensure funding conditions continue to support the economic recovery. Analysts are expecting the ECB to further increase the EUR 1,350 billion buy-back program in December 2020.

The Central Planning Bureau (CPB) expects the Dutch economy to contract by 4.2 percent in 2020. For 2021, CPB is expecting growth of 2.8 percent for 2021. This estimate takes into account the availability of potential vaccines. In August 2020, the CPB expected a decline of 5.0 percent for 2020 and a growth of 3.0 percent for 2021.

New figures from Statistics Netherlands on Friday show that the index for producer confidence increased in November 2020 to a level of 3.8 negative, from 5.8 negative in October 2020. In November 2020, producers were less gloomy about the order book and the expected activity. On the other hand, producers were slightly less positive about the stock of finished products.

The 6M Euribor is unchanged at -0.51% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.25% 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 26 November 2020

Market Information Thursday 26 November 2020

The British economy is expected to shrink by 11.3% this year due to the corona crisis, according to the British Treasury Secretary. This would be the UK’s biggest contraction in more than three centuries. Looking to the future, it is predicted that unemployment will peak at 7.5% in the second quarter of 2021, which equates to 2.6 million unemployed people. In order to withstand the crisis, the British government plans to borrow EUR 422 billion this fiscal year.

Worldwide, 2.1% more goods were traded in September than in the previous month. This is less strong growth compared to July and August, which, according to the Central Planning Bureau (CPB), is weakening the recovery from the corona crisis. Emerging economies, such as China and Latin American countries, imported significantly more in September. In contrast, exports from these countries increased only slightly. In advanced economies, these developments are exactly the other way around.

On December 9, the European Commission will present legislative proposals for the digital sector. The Digital Services Act and the Digital Market Act must prepare Europe for the digital age. These Acts must ensure that European values such as democracy, freedom of expression and fair competition remain protected. Ultimately, this boils down to limiting the scope for action for big tech companies. It concerns, for example, how to deal with “illegal content”.

The 6M Euribor is unchanged at -0.51% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.24% 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 25 November 2020

Market Information Wednesday 25 November 2020

The German economy grew 8.5 % in the third quarter. The German statistical office reports this based on final estimates. Preliminary calculations had previously reported a growth of 8.2 %. Higher consumer spending contributed to the growth being higher than previously calculated. In the second quarter, the German economy shrank by nearly 10 % due to the pressure of the first corona lockdown. The recovery in the third quarter was not so strong that the economy grew above the level of a year earlier. The gross domestic product (GDP) was 4 % less than in the third quarter of 2019.

Research institute Ifo has announced that German business leaders’ confidence in the economy has decreased. The index reached a level of 90.7 in November against 92.5 in October. It is the second month in a row that confidence decreases. Economists had anticipated a decrease to a level of 90.1. The sub-index for expectations for the next six months also decreased to a level of 91.5 from 94.7 a month earlier.

The Dow Jones index closed above 30,000 for the first time ever on Tuesday. The index gained 1.5 % to a level of 30,0046.24. The record follows news that US President Donald Trump will agree to a transfer of power to his successor Joe Biden. In addition, the expectations of the speedy arrival of vaccines against the corona virus created optimism. The S&P 500 won 1.6 % and also closed at a record high of 3,635.41. Tech exchange Nasdaq gained 1.3 % and ended at a level of 12,036.79.

The 6M Euribor is unchanged at -0.51% compared to previous business day. The 10Y Swap increased with 2 basis points 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 Tuesday 24 November 2020

Market Information Tuesday 24 November 2020

Listed companies need to be more explicit in their business updates about the impact of the corona crisis on their companies. The Netherlands Authority for the Financial Markets (AFM) reports in a report that this is of importance for investors. A research carried out by the AFM among 26 listed companies suffering negative effects from the corona crisis, shows that a small group does not provide any explanation. According to the AFM, a quarter of the companies examined gave a sufficient explanation.

Activity in the American industry grew faster in November than in October. This is reported by market researcher Markit on the basis of preliminary figures. Markit’s purchasing managers’ index for the industry in the US for this month noted a level of 56.7 compared to 53.4 in October. A level of 50 or more indicates growth, below 50 indicates a contraction. Economists expected a level of 53 for November.

The preliminary figures from Markit concerning the euro area, however, show a decline in industrial growth in November compared to October. For the euro area, Markit’s purchasing managers index stood at 53.6 this month, compared to 54.8 in October. The index for the euro area services sector shows a more significant contraction in November compared to last month. It stands at 41.3 in November compared to 46.9 in October.

The 6M Euribor is unchanged at -0.51% compared to previous business day. The 10Y Swap increased with 1 basis point to -0.25% 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 Friday 20 November 2020

Market Information Friday 20 November 2020

The Leading Economic Indicators (LEI) index for the US economy increased by 0.7 percent in October 2020 to 108.2. In September 2020, the index also increased by 0.7 percent. The LEI index is a business cycle indicator that shows the development of the economy in the coming six months.

Figures from the US Department of Labor show that 742,000 Americans filed for social assistance benefits in the week ending November 14, 2020. This is an increase compared to the week before, when 711,000 applications were submitted. Economists had expected 710,000 new unemployed.

Consumer confidence in the Netherlands increased slightly in November 2020 compared to October 2020, according to Statistics Netherlands. The index representing confidence increased to negative 26 in November 2020 from negative 30 in October 2020. An index of negative 26 was still well below the average of 7 negative over the past 20 years.

The 6M Euribor is unchanged at -0.51% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.24% 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.