KBC Market Research Desk
KBC Bank
- European shares opened sharply lower this morning after a combination of hawkish FOMC Minutes, another disappointing Chinese PMI and poor French data, but recovered part of their losses. US equities trade little changed, ignoring the poor Philly Fed index.
- According to a draft ministerial statement, the European Union is preparing to impose sanctions on those responsible for deadly violence in Ukraine as well as impose an arms embargo on the country, Reuters reports. Today, fresh fights broke out in Ukraine, shattering the truce declared by Ukrainian President Yanukovich.
- British finance minister Osborne warned today he would deal with “hard truths” about Britain’s unbalanced recovery in his annual budget next month, emphasizing the need for more manufacturing exports. Osborne added that the economy was too reliant on consumer spending and the finance industry.
- The European Commission said today that Portugal’s bailout programme remains “broadly” on track and the baseline outlook implies its economic recovery is becoming more entrenched, although they warned that risks, mainly legal, remain significant.
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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EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
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