European shares rebounded today on signs of cooperation from Ukraine’s pro‐Russian separatists over the downed plane. In Europe, gains exceed 1%, while US Equities opened with more limited gains.
US Secretary of State Kerry held talks with Israel today and U.N. Secretary General Ban Ki‐moon is due to arrive in Israel later today in an attempt to halt fighting which has already claimed more than 500 lives. Israel however pounded targets across the Gaza strip today, saying no ceasefire was near.
EU Foreign Ministers threatened Russia with further sanctions over Ukraine, being under pressure from the US and Britain to step up sanctions after the downing of the Malaysian Airline plane last week. Finding a consensus remains however difficult with several countries concerned about Russian energy supplies and business ties with Moscow.
The Hungarian central bank cut today its main interest rate by a bigger than expected 20 basis points to 2.10%, but added that its rate cut cycle is now over as the base rate has reached a level which assures the achievement of the CPI target, while supporting the economy. The Hungarian forint rose significantly, below EUR/HUF 308.
After the NY and Philly Fed index, also the US Richmond Fed index surprised on the upside of expectations in July, rising from 3 to 7, providing further evidence that business sentiment is improving further this month.
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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