European shares rally, gaining between 1.5%‐2%, spurred by rumours that the ECB might start buying corporate bonds. US Equities opened higher too.
According to Reuters sources, the ECB is considering buying corporate bonds on the secondary market and may decide on the matter as soon as December with a view to start buying early next year.
Existing home sales rose slightly more than expected in September to an annual 5.17 million, up 2.4% from August 5.05 million rate. The data confirm an ongoing modest recovery of the housing market.
Coca Cola announced today a decline in its quarterly profit by 14% and added that it expects to miss its earnings growth target this year. Mc Donalds reported a 30% drop in its quarterly profit due to a food scandal in China and strong competition in the US, which might continue to weigh on earnings this quarter.
The European Commission fined JP Morgan, UBS and Credit Suisse for a total of €94 million for taking part in cartels in the financial sector. RBS was not penalised, as it alerted the European Commission to the cartels.
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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