In the United States, the market interest rate on a ten -year state loan was rising as investors chewed the president Donald Trump Import duties for cars and macroeconomic data on the region’s economic growth.
The ten -year -olds were 1.7 at a rate of 4.371 %, while the two -year loan rate was 1.8 percentage decline at 3.998 %.
“Customs Deposits Breakdown,” Investment Bank Mischler Financial Groupin manager Tom are slow Comment on Bloomberg news agency.
Interest point means 0.01 percent. As market interest rates rise, their prices fall. As interest rates fall, prices will increase.
The interest rate decreases, the price rises
Market interest (current yield): Describe a yearly return. As the price of the loan paper decreases, the market rate rises, as the price rises the interest rate decreases.
Bond: An investor buys a $ 1,000 loan paper with a 2.0 % annual coupon rate. The market interest rate is (20/1000) 2.0 %.
The price rises, the interest rate drops: The investor sells the loan to another investor for EUR 1,100, ie the price rises. The new investor’s return is no longer 2.0 % because he bought the loan at a more expensive but receives the same coupon rate. The new market interest rate (20/1100) is approximately 1.8 %.
President Donald Trump announced that the United States will begin to charge a 25 % import duties on all vehicles imported from abroad and from foreign spare parts for cars, which has been interpreted as having had the moods of the market.
The customs will take effect on Wednesday, April 2, on Wednesday of next week, when Trump has come to tell about new duties.
Financial media According to Financial Times After the announcement, the authority confirmed that, in addition to entire cars, the duties affect parts of cars such as engines and electronic components.
The influence of customs on the US economy is interpreted as raising concerns in the market. On Tuesday, figures were reported that consumers’ confidence in the economy is at the lowest level of the year.
Today we also received positive financial data.
The economy grew more than expectations
In October -December last year, the US GDP increased by 2.4 per cent, while the median of economists’ forecasts expected 2.3 percent. In the former quarter, growth generated 3.1 %.
According to Bloomberg, the figures also included information on the profits of the companies. For example, profits after taxes increased by 5.9 percent in the fourth quarter, which is more than more than two years.
Bloomberg interprets the data that US companies may have the space not to transfer the possible rise in prices for Trump’s customs to their own products and services.
Economists are expecting more moderate growth this year as Trump’s policy causes uncertainty for consumers and companies.
For example, last week, the US Central Bank FED lowered its forecasts for economic growth. Inter alia Goldman Sachs and Morgan Stanley have also lowered their predictions.
1,000 new unemployment benefits were submitted last week than in the previous week and less than the economists expected.
In Europe, market interest rates fall
In Europe, market interest rates were mainly down. For example, the interest rate on a German ten -year government loan was 1.1 with a high interest rate of 2.782 % and the interest rate on France’s corresponding loan was 0.8 by interest rates by 3.478 %.
Germany’s two -year -olds were 4.1 percentage decline at 2.072 % and the French loan also had a 4.1 interest rate decline in 2.202 %.
During this year, market interest rates in Europe have risen more than the United States, which is reflected in the interest rate on a German ten -year loan, for example. At the end of last year, the market interest rate was approximately 2.35 %.
In Germany, federal days have decided to enable hundreds of billion euros in investing in defense and infrastructure. This is a significant change in the state, formerly known for its strict financial policy.
In the stock market, the news has been well received, especially in the weapon industry. In the interest rate market, on the other hand, investors are demanding a higher price for loan money as government debt increases.
At around 6:06 pm, $ 1.0795 received $ 1.0795, $ 163.06 in Japan, 0.83272 British pounds and 10,810 Swedish crowns.