KBC Market Research Desk
KBC Bank
European stocks opened higher this morning, supported by a moderately positive outcome of the ECB’s health check of the banking sector, but optimism faded soon. Most European indices lose up to 0.50% with financials underperforming. US Equities opened lower too, but soon managed to reverse most of their losses.
The ECB announced today that it settled €1.704 billion in purchases under the new covered bond programme last week. The ECB started buying covered bonds last week and will announce each Monday the amount of purchases.
Shares in Banca Monte dei Paschi di Siena tumbled more than 20% after the ECB’s stress tests showed it had the biggest capital shortfall among European banks. The regulator banned short selling in the stock.
The re‐election of President Rousseff dashed investors’ hope on a meaningful change in policy in Brazil over the coming years, weighing on Brazilian financial markets today. Brazilian stocks lose up to 4% and the Brazilian real is trading significantly lower too.
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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