KBC Market Research Desk
KBC Bank
After opening sideways, European shares advanced during the session supported by an unexpected drop in the German unemployment rate. US stocks are closed in observance of Thanksgiving.
The OPEC decided today to keep its production target unchanged. The Brent oil price dropped sharply after the decision to around $75/barrel.
The German 10‐year yield dropped to a new record low of 0.70% today as German inflation eased to a new 3.5‐year low, keeping expectations on further ECB action alive. Also in Spain, Italy, Belgium… yields dropped to new record lows.
The European Commission will inform France, Italy and Belgium tomorrow that their 2015 budgets are breaking EU rules, Reuters reports, adding that they will receive three more months to adjust policy before the EU must decide whether to fine the countries.
Growth in euro zone M3 money supply stabilized at 2.5% Y/Y in October, while a slight increase was expected. Lending data remained sluggish as a slight increase in lending to households was offset by continued weakness in lending to non‐financials.
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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