KBC Market Research Desk
KBC Bank
Despite strong gains on Wall Street yesterday, European shares failed to profit, trading broadly unchanged. US Equities opened slightly lower, reversing part of yesterday’s gains.
After nearly 4 years of absence, Greece made today a successful return to the bond market. Athens sold €3 billion of five year bonds and offered a yield of 4.95%. Interest was huge with books above €20 billion.
The Bank of England decided today to keep its monetary policy unchanged, as was widely expected. The Bank Rate remains at its record low level of 0.5% and the stock of asset purchases was maintained at £375B. No statement was published.
German economic institutes confirmed growth expectations of 1.9% for this year and 2.0% for next, even though they warned that the planned minimum wage would weigh on the economy. Inflation is expected at 1.3% this year, before picking up to 1.8% 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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