KBC Market Research Desk
KBC Bank
European equities trade close to opening levels after recovering from initial weakness. Disappointing eco data pushed the Dax for a test of yesterday’s low, but a break didn’t occur. US equities open marginally higher. Stronger earnings (JP Morgan, Johnson & Johnson, Citigroup) seem to be able to (temporary?) stop the selling pressure.
The German 10‐year yield dropped to a new record low today following another batch of poor economic data from Europe and sharply lower than expected inflation data in the UK and Sweden.
The German Economy Ministry slashed its growth forecasts for this year to 1.2%, sharply down from 1.8% in April and also lowered growth expectations for next year to 1.3% (from 2%). The Ministry said that geopolitical crises increased uncertainty in Germany and moderate growth is weighing on the German economy.
Euro zone industrial production dropped more than expected in August, by 1.8% M/M, mainly due to awful German output, while also in other countries production remained sluggish. The German ZEW indicator for October showed a further worsening in investor morale, to the lowest level since end 2012.
The US earnings season came into full swing today with JP Morgan Chase and Citigroup the eye‐catchers. JP Morgan narrowly missed expectations for the third quarter, while Citigroup reported stronger profits, helped by better than expected trading results.
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
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
EUR/USD mired near 1.0730 after choppy Thursday market session
EUR/USD whipsawed somewhat on Thursday, and the pair is heading into Friday's early session near 1.0730 after a back-and-forth session and complicated US data that vexed rate cut hopes.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Ethereum could remain inside key range as Consensys sues SEC over ETH security status
Ethereum appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the US SEC and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.