KBC Market Research Desk
KBC Bank
European shares rose for a second straight session, supported by a decent ECB bank lending survey and slightly stronger Belgian growth in Q3. US Equities opened mixed, awaiting this evening’s FOMC decisions.
The ECB Bank Lending Survey showed that banks eased their credit standards further in the third quarter, both for loans to households and non‐financials, while also demand for credit increased in Q3 and a further improvement in demand is expected in the final quarter of the year.
According to the preliminary estimate, the Belgian economy grew by 0.2% Q/Q in the third quarter, slightly stronger than the 0.1% Q/Q growth rate in Q2. The annual growth rate however slowed from 1.0% to 0.8% Y/Y.'
The German DIW economic institute said today it forecasted the German economy to have grown by 0.1% Q/Q in Q3, before a stagnation in the final quarter of the year, pointing to slowing foreign trade and a delay in investments because of the geopolitical crisis.
Today, the Federal Reserve will announce its interest rate decision. We believe the FOMC will end its QEprogramme, while keeping its forward guidance unchanged.
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
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.