European shares dropped lower today as BES concerns weighed on sentiment together with Argentina’s default. Also US Equities opened significantly lower with the Nasdaq losing 1%.
The Czech central bank said today it will keep its regime of foreign exchange interventions longer in place, at least until early 2016. The central bank upgraded its growth forecasts, but expects inflation to stay low for longer. EUR/CZK edged up today.
The euro zone unemployment rate dropped unexpectedly in June, falling from 11.6% to 11.5% as the number of people unemployed dropped significantly in the euro area.
Shares in Banco Espirito Santo plummeted 50% intraday after the company reported a €3.49 billion net loss in the second quarter. Earlier, the Bank of Portugal said BES had sufficient capital, but they warned yesterday that a capital increase was necessary.
Contrary to most other business confidence indicators, the Chicago PMI dropped sharply in July, falling from 62.6 to 52.6, while a slight pick‐up was expected. The outcome increases uncertainty ahead of tomorrow’s ISM reading.
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.
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.