KBC Market Research Desk
KBC Bank
European shares swung between gains and losses today ahead of tomorrow’s ECB meeting. In the US, Equities opened lower and can’t profit from a better non‐manufacturing ISM.
Non‐manufacturing ISM improved from 56.7 to 56.9 (56.5 expected). The services sector thus expanded at a faster pace, encouraging companies that make up the biggest part of the US economy to take on more workers.
The Polish central bank cut its main interest rate by 50 basis points today to a new record low of 1.50%, responding to persistent declines of consumer prices despite healthy growth. The market was looking for a more limited 25 basis points cut. The zloty weakened slightly following the decision.
Britain won today a legal battle over the place of London in Europe’s single market, forcing the ECB to scrap a policy which required big clearing houses to decamp to the euro zone.
The Bank of Canada kept its policy rate unchanged at 0.75%.
Later today, the Fed will publish its Beige Book and Fed’s George and Fisher are scheduled to speak.
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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