KBC Market Research Desk
KBC Bank
Following substantial gains in the previous days European shares dropped lower today as profit‐taking kicked in ahead of the weekend. US Equities opened lower too after mixed eco data and poor sentiment in Europe.
Contrary to yesterday’s PMI’s, the German IFO business climate indicator weakened further in July, falling from 109.7 to 108, below the consensus estimate of 109.4. The IFO said that geopolitical tensions probably weighed on sentiment.
The Russian central bank unexpectedly raised interest rates today, by 50 basis points to 8%, saying the rate hike was governed by concerns about high inflation and geopolitical tensions. The Russian ruble strengthened slightly today.
EU ambassadors reached a preliminary deal on stepped‐up sanctions against Russia, targeting its access to European capital markets and trade in the defence sector, dual‐use goods and sensitive technologies. Officials will meet again on Tuesday.
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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