KBC Market Research Desk
KBC Bank
Both German and US yields dropped sharply today. The US 10‐year yield did test the 2% level, while the German 10‐ year yield dropped to a new record low around 0.75%. The German 5‐year yield is hovering around 0.10%, a record low level too.
Poor economic data and deflation fears hit European stocks too with losses ranging between 2‐3%. US Equities opened lower too, currently trading with losses around 1%. Health care, technology and financials are hit the hardest.
Brent crude oil prices remain under pressure currently trading around $85/barrel. Gold futures edged up in the afternoon, to $1243 as risk‐off sentiment supported safe haven flows.
Political leaders in the US warned today that there could be more cases of Ebola in the coming days after a second health‐care worker at a Texas hospital tested positive for the virus.
This evening, the US Federal Reserve will publish its Beige Book, ECB’s Draghi is scheduled to speak, as well as ECB’s Nouy and BoE’s Weale.
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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