KBC Market Research Desk
KBC Bank
European shares opened higher, but political uncertainty in Greece pushed stocks lower. Currently, European indices trade mixed. In the US, Equities opened higher ahead of the FOMC decision later today.
Greece’s new Prime Minister Tsipras said his government would refuse to give in to international pressure over its bailout package, but tried to reassure markets by saying he would not seek a mutually destructive clash with creditors. Greek stocks trade sharply lower today, losing almost 10%. Greek yields rose sharply today with the curve inverting further.
The EU prepared a draft statement for the foreign ministers of its 28 members to agree to extend sanctions against Russia by six months, add new people to the sanctions list and prepare new measures. Foreign ministers will meet tomorrow in an extraordinary meeting after a new advance by pro‐Russian rebels.
China plans to cut is growth target to 7% this year, the lowest goal in 11 years, Reuters reports quoting an influential government advisor. The lower growth target should allow the government to pursue reforms intended to make the economy more driven by market forces.
The KOF Swiss Economic Institute slashed its growth forecasts for this year to ‐0.5% from 1.9% in December as the franc’s surge will weigh on exports and lower crude oil prices hit oil trading activity. Inflation is expected fall to ‐1.5% Y/Y in 2015.
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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