European main equity markets show negligible gains

  • European main equity markets show negligible gains at the closure of our report. An early dip was fast undone and followed by sideways trading just above opening levels. We expect a nearly unchanged opening in the US, as traders await the press conference of Donald Trump.

  • UK November industrial production increased by more than expected in November (2.1% m/m) following an upwardly revised 1.1% m/m decline in October. UK trade data painted a less bright picture with a huge deterioration of the trade deficit (from £9.89B to £12.16B).

  • Poland has kept its key interest unchanged at its record low level (1.5%) in January in the face of a slowing economy and a worsening in its public finances.

  • Berlin's chief economist has firmly rebuffed suggestions that Europe's largest nation should spend more in an attempt to lift growth across the continent, accusing some of the world's foremost economic institutions of being "short sighted". In 2016, Germany managed to post a €5‐7B budget surplus, according to sources.

  • A potential assembly election in Northern Ireland will not disrupt the UK government's plans to invoke Article 50 to begin the process of leaving the EU by the end of March, UK prime minister May has said.

  • Italy's constitutional court has rejected a bid by the country's top union to hold a referendum on a key provision of the 2015 labour market reform which makes it easier for companies to fire workers, handing a victory to Matteo Renzi, the former prime minister who engineered the overhaul. However, it approved a plebiscite on two other less important measures.

  • U.S. President‐elect Donald Trump said that Russia had never tried to use leverage with him and blamed intelligence agencies for news reports that Moscow had compiled compromising information on him. Later today, the US president‐elect holds his first formal press conference since the November elections.

  • The head of the euro zone banking watchdog said she had no concerns about how EU bank failure rules had been applied in the public rescue of Italy's Banca Monte dei Paschi di Siena. Rome used a clause on banking liquidation to reduce losses on BMPS creditors.

 

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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.