|

European equities gain around 0.5% today

  • European equities gain around 0.5% today with Spain underperforming as tomorrow's Puigdemont deadline looms. US stock markets opened with modest gains.

  • British pay growth has lagged behind inflation again, official data showed on Wednesday, adding to questions about how quickly the Bank of England will raise interest rates after an initial hike expected on Nov. 2. Britain's jobless rate between June and August held at a 42-year low of 4.3%.

  • A larger-than-forecast decline in US new home construction (-4.7% M/M) reflected the weakest pace of building in the South since October 2015, showing the fallout from hurricanes Harvey and Irma, according to government figures Wednesday. Building permits disappointed as well, declining by 4.5% M/M in September.

  • Easy monetary policy gives euro zone governments a window of opportunity to enact the reforms needed to boost growth once interest rates have to rise, ECB President Draghi said.

  • France's central bank governor Villeroy called for a reduction in the ECB's bond purchases towards "their possible end" in light of stronger inflation, while saying monetary policy should stay easy. ECB board member Lautenschlaeger called for a complete QE rollback in 2018.

  • Steven Mnuchin said that there is "no question that the rally in the stock market has baked into it reasonably high expectations of us getting tax cuts and tax reform done". He added that the spectre of regulatory relief has also been priced into stocks.

  • Germany's top court threw out a cease-and-desist request that could have halted the ECB's giant bond-buying program, offering some comfort to ECB policy makers as they prepare to extend the purchases into 2018.

  • Spanish Deputy Prime Minister Soraya Saenz de Santamaria says the Spanish government will take control of Catalonia unless the regional leader withdraws his claim to independence by 10 am tomorrow.

Author

KBC Market Research Desk

KBC's Market Research Desk publishes a number of short-term reports.

More from KBC Market Research Desk
Share:

Editor's Picks

AUD/USD bounces back toward 0.6950 on fresh USD supply

AUD/USD bounces back toward 0.6950 in the Asian session on Friday. The US Dollar retreats from 17-month highs as traders take profits off the table ahead of the all-important US Nonfarm Payrolls report. Meanwhile, the Australian Dollar draws support from reviving expectations of a November interest rate hike amid elevated global yields and inflation risks.


USD/JPY struggles near 158.00 as USD retreats ahead of NFP

USD/JPY is struggling for fresh impetus near 158.00, moving away from the top end of its weekly range in the Asian session on Friday, after hotter-than-expected Tokyo CPI and amid a broad US Dollar retreat. Traders reposition themselves ahead of US Nonfarm Payrolls.

Gold fades the earlier optimism; back below $4,200

Gold could not sustain the post-NFP bull run past the $4,200 mark per troy ounce, receding toward the $4,180 region at the end of the week. The precious metal’s inconclusive price action comes amid fresh selling pressure hurting the US Dollar as investors assess the latest NFP data.

Crypto Today: Bitcoin, Ethereum and XRP gains reinforce bullish outlook

Cryptocurrency prices are broadly recovering on Friday, led by Bitcoin moving above $86,000. Ethereum has reaffirmed its bullish outlook, rising above $2,700 while the immediate area at $2,800 caps upside. Meanwhile, Ripple hovers near $1.54.

Week ahead – Fed minutes in the spotlight amid bond market rout

Energy crisis and soaring bond yields to stay in driver’s seat in quiet week. Fed minutes eyed after drop in October rate hike bets. ISM services PMI and Treasury auctions to be watched too. Canadian employment, Japanese wages and ECB minutes also on tap.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.