KBC Market Research Desk
KBC Bank
European shares held up reasonably well, until the ECB press conference when they slid sharply lower, maybe on disappointment that Draghi didn’t suggest QE is around the corner and thus growth may remain morose. US equities opened with minor losses.
The ECB revealed details on its bond buying programmes. Overall, he remained vague on the exact size of the economy, but the pool of possible ‘targets’ amounts €1 trillion. Furthermore he kept the option for more unconventional measures, if needed, open.
Oil prices sank further with Brent hitting its lowest level in more than two years, at $92/barrel. The latest sell off came after state‐owned Saudi Aramco lowered its official selling prices for November loading cargoes to all regions
The number of Americans filing applications for unemployment benefits fell last week, a sign that the job market is sustaining progress. Jobless claims dropped by 8 000 to 287 000 in the week ending Sept.27
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
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Week ahead – US GDP and BoJ decision on top of next week’s agenda
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