KBC Market Research Desk
KBC Bank
European shares rebounded today after the Fed maintained its promise to keep rates low for some time. US Equities opened higher too with the Dow at record highs, while also the S&P is nearing its all‐time highs.
The ECB announced today that banks borrowed €82.6 billion through its first targeted LTRO, which was well below market expectations, looking for a take‐up of around €150 billion. Banks will get a second chance to apply for cash in December. ,
The Norges Bank decided today to keep rates unchanged at 1.50%, in line with expectations. The Norwegian crown rose sharply today as the central bank skipped its downside risks for the policy rate, but signalled that the first rate hike would come later than earlier projected.
The Swiss National Bank held rates unchanged at zero this morning and said it stood ready to take more steps “immediately” if needed to defend the cap against the euro at 1.20. The Swiss franc strengthened after the announcement as some had expected the central bank to cut rates into negative territory.
Irish growth remained surprisingly strong in the second quarter, increasing by 1.5% Q/Q, while the annual growth rate picked up to 7.7% Y/Y. The data may exaggerate the improvement in conditions but confirm that the recovery is strengthening and broadening.
This non-exhaustive information is based on short-term forecasts for expected developments on the financial markets. KBC Bank cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct or consequential loss arising from any use of this document or its content. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. Although information has been obtained from and is based upon sources KBC believes to be reliable, KBC does not guarantee the accuracy of this information, which may be incomplete or condensed. All opinions and estimates constitute a KBC judgment as of the data of the report and are subject to change without notice.
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