KBC Market Research Desk
KBC Bank
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European shares had a strong run on strong earnings of companies like LVMH, PSA Airbus and Air France. US equities opened with gains too. Especially the NASDAQ did well after encouraging Apple results and guidance.
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Italy's Banca Monte dei Paschi di Siena has presented to the European Central Bank a plan to shed about €10 billion ($11 billion) in nonperforming loans and raise up to €5 billion in fresh capital, in a bid to stave off a bailout by the Italian government and draw a line under its longstanding problems.
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A core measure of US spending on durable goods fell the most since August 2014 last month, raising concerns about the pace of business spending in the world's largest economy. Headline orders for durable goods fell 4% Y/Y (vs ‐1.4% Y/Y expected) in June, following a 2.8% decline in the previous month.
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Britain's economy much grew faster than expected in the three months leading up to, and including, the EU membership referendum, according to official estimates. GDP grew by 0.6% between the beginning of April and the end of June compared to 0.4% growth in the first quarter of the year.
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Spain and Portugal avoided a landmark penalty from EU authorities for persistently missing their budget targets with officials in Brussels opting for leniency amid rising populism and public discontent against austerity. The EC decided not to impose sanctions because of the challenging economic environment both countries face.
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The European Commission took a step toward suspending Poland's voting rights in the bloc, saying the government in Warsaw hasn't done enough to restore rule‐of‐law norms that it warns are under threat from an overhaul of the country's Constitutional Tribunal.
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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