KBC Market Research Desk
KBC Bank
European shares post strong gains today, reversing yesterday’s losses. Most indices gain more than 1%, despite mixed corporate earnings. US Equities opened higher too supported by mostly stronger economic data.
The Swedish Riksbank decided to cut its main interest rate to zero, from 0.25%, in an attempt to boost inflation which continued to surprise on the downside. The cut was larger than expected and the central bank added that it does not expect to raise interest rates until the middle of 2016. The Swedish crown weakened sharply.
The risk of price deflation in the euro zone is limited, ECB Chief Economist Praet said in a newspaper, adding that ECB figures suggest a much lower probability than those suggested by the IMF, which see deflation risks at 30%.
The Richmond Fed manufacturing index improved unexpectedly in October, jumping to its highest level since December 2010, boosted by strong improvements in new orders and shipments.
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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