Market Information Wednesday 8 July 2020

Market Information Wednesday 8 July 2020

The European economy is expected to enter a deeper recession than the European Commission expected two months ago. According to a new forecast from the European Commission, a contraction of 8.7% is expected in the eurozone. In May, the economy was expected to contract by 7.7%. This difference is mainly caused by the significant downward revision of the figures of the severely affected southern EU Member States. Vice-President Valdis Dombrovskis stated that the economic impact of the lockdown was more severe than initially estimated.

According to figures from Destatis, the German statistical office, German industrial production increased by 7.8% in May compared to the previous month. In April there was an unprecedented contraction of 17.5% which, as a result of corona measures, led to factory closures. On average, economists had expected a stronger recovery of 11.1% on a monthly basis.

Dutch minister of finance Wopke Hoekstra is preparing a bill to oblige auditors to audit the annual financial statements of companies listed on the stock exchange. Auditors are now allowed to refuse them as clients, and this threatens to bring a number of small stock exchange funds into financial trouble, Dutch newspaper Financieele Dagblad reports. Preparations for a bill will start after the summer.

The 6M Euribor is unchanged at -0.31% compared to previous business day. The 10Y Swap is unchanged at -0.16% 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 7 July 2020

Market Information Tuesday 7 July 2020

Activity levels in the services sectors in the United States increased significantly in June 2020 from a month earlier, according to the Institute for Supply Management (ISM). Its non-manufacturing index surged to a level of 57.1 against 45.4 in May. Readings above 50 indicate growth. The increase was larger than expected by economists (50.2).

New figures from Eurostat show that the volume of retail sales in the eurozone increased by 17.8 % in May 2020 compared to April 2020. For the whole EU, the increase is 16.4 %. On an annual basis, retail sales decreased 5.1 % in May 2020 compared to May 2019 for the eurozone and 4.2 % for the whole EU.

Statistics Netherlands (CBS) has announced that consumer prices were higher in June 2020 than last year. Inflation was 1.6 percent in June, up from 1.2 percent in May. The rise in inflation is mainly the result of price developments of fuels, tobacco and clothing.

The 6M Euribor decreased with 1 basis point to -0.31% compared to previous business day. The 10Y Swap is unchanged at -0.16% 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 6 July 2020

Market Information Monday 6 July 2020

According to Klaas Knot, president of De Nederlandsche Bank (DNB), it is possible that the European Central Bank will not use the full 1350 billion euros in the purchase program to fight the corona crisis. In addition, there are risks associated with relying too long on certain crisis measures by the central bank for the euro area. Knot argued at an online event of Bloomberg for a good mix of support measures, not just looking at central banks for help with purchase programs or interest rate cuts. According to the DNB president, this did happen during the recovery after the financial crisis. One of the drawbacks was the cheap money policy that encouraged higher debts.

Consumer confidence in the Netherlands improved again in the second half of June, but the increase was extremely limited. The indicator of the Dutch Central Bureau of Statistics (CBS) for consumer confidence was -26 in the second half of June against -27 in the first half of June. According to the CBS, the willingness to buy among households improved from -11 to -8. The opinion on the economic climate remained at -52.

The British researcher company Markit reports that the services sector of several European countries picked up again in June after a strong dip in April and a cautious recovery in May. A score of 48.3 was measured for the entire eurozone. The service sector includes, amongst others, tourism, retail, hospitality and aviation, which were deeply affected by measures to fight the spread of the corona virus.

The 6M Euribor is unchanged at -0.30% compared to previous business day. The 10Y Swap is unchanged at -0.16% 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 3 July 2020

Market Information Friday 3 July 2020

According to the European statistics agency Eurostat, unemployment in the Eurozone increased further in May to 7.4 percent from 7.3 percent in April. Eurostat reports more than 12 million people unemployed in the euro area of 19 countries. Unemployment was measured at 6.7 percent for the entire European Union. That amounts to over 14 million unemployed.

The United States Department of Commerce announced that factory orders in the United States were up 8 percent in May compared to April. In the previous months, orders fell sharply due to the corona crisis. Economists expected an increase of 8.7 percent. Factory orders declined by a revised 13.5 percent in April. Orders declined sharply in March.

A majority of the German parliament supports the European Central Bank (ECB) bond purchase program that started five years ago. The stimulus policy threatened to stall because of a ruling by the German Constitutional Court, but the threat has passed due to political support. In addition to the coalition parties, the Greens and the liberal FDP are also satisfied with the ECB’s explanation of the bond purchase program.

The 6M Euribor increased with 1 basis point to -0.30% compared to previous business day. The 10Y Swap decreased with 2 basis points to -0.16% 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 2 July 2020

Market Information Thursday 2 July 2020

The Institute for Supply Management (ISM) reports that manufacturing in the United States increased in June from a month earlier. The Purchasing Managers’ Index (PMI) showed a reading of 53.6 compared to 43.1 in May. Economists had anticipated a reading of 49.8.

Employment in the United States increased again in June. According to the ADP Research Institute businesses’ payrolls increased by 2.37 million in June compared to a month earlier. The increase was less significant than economists projected. They had expected an increase of 2.9 million. The May figure was revised to an increase of 3.07 million.

IHS Markit released the June final figures for the industry of the eurozone on Wednesday. The Purchasing Managers’ Index (PMI) rose to a level of 47.4 in June from 39.4 in May. That level is higher than the preliminary reading of 46.9 published last week. According to HIS Markit’s chief economist Chris Williamson the numbers indicate a strong recovery after easing of the lockdowns.

The 6M Euribor decreased with 2 basis points to -0.31% compared to previous business day. The 10Y Swap increased with 4 basis points to -0.14% 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.