KBC Market Research Desk
KBC Bank
European shares rose for a second straight session, supported by a decent ECB bank lending survey and slightly stronger Belgian growth in Q3. US Equities opened mixed, awaiting this evening’s FOMC decisions.
The ECB Bank Lending Survey showed that banks eased their credit standards further in the third quarter, both for loans to households and non‐financials, while also demand for credit increased in Q3 and a further improvement in demand is expected in the final quarter of the year.
According to the preliminary estimate, the Belgian economy grew by 0.2% Q/Q in the third quarter, slightly stronger than the 0.1% Q/Q growth rate in Q2. The annual growth rate however slowed from 1.0% to 0.8% Y/Y.'
The German DIW economic institute said today it forecasted the German economy to have grown by 0.1% Q/Q in Q3, before a stagnation in the final quarter of the year, pointing to slowing foreign trade and a delay in investments because of the geopolitical crisis.
Today, the Federal Reserve will announce its interest rate decision. We believe the FOMC will end its QEprogramme, while keeping its forward guidance unchanged.
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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