Interest rates on government bonds were in a downward trend on Monday. The markets discussed, among other things, the twists and turns of the US presidential election and future macroeconomic publications this week.
Yesterday, Sunday, the current president of the United States Joe Biden announced that he would withdraw from the election and give his support to Vice President Kamala Harris.
The readings of the purchasing managers’ indices for the euro area will be published on Wednesday of this week. The readings are expected to have developed in a slightly better direction since June’s readings.
Tomorrow, Tuesday, there will be consumer confidence figures for the euro area. A moderate recovery is also expected in terms of consumer confidence.
In the United States, the S&P purchasing managers’ index figures are expected on Wednesday, the figures describing the development of the gross domestic product on Thursday, and the PCE inflation figures on Friday.
“The consensus predicts that the US economy grew by 1.9 percent in April-June compared to the previous quarter on an annualized basis. This has been deemed to be just the right ‘gold rush pace’ – not so fast that you need to worry about inflation picking up again, but brisk enough that the US economy can be said to be doing quite well.” Nordic the morning review discussed the future inflation figures.
At the time of the review, the interest rates on the US ten-year government bond were down 1.4 percentage points at 4.225 percent. Interest rates on the two-year government bond rose by 1.0 percentage points to 4.521 percent.
In Germany, the interest rate on the ten-year loan was down 0.5 percentage points at 2.459 percent, and the interest rate on the two-year loan was up 1.7 percentage points at 2.788 percent.
In the currency market, the dollar weakened after Biden announced his withdrawal from the presidential race. Instead, the price of gold was rising.
At 2:58 p.m., the euro got 1.09 dollars, 170.65 yen, 0.84 pounds or 11.62 Swedish kronor. The dollar was 156.76 yen and the pound was 1.29 dollars.
Source: www.arvopaperi.fi
