KBC Market Research Desk
KBC Bank
European shares dropped lower today as BES concerns weighed on sentiment together with Argentina’s default. Also US Equities opened significantly lower with the Nasdaq losing 1%.
The Czech central bank said today it will keep its regime of foreign exchange interventions longer in place, at least until early 2016. The central bank upgraded its growth forecasts, but expects inflation to stay low for longer. EUR/CZK edged up today.
The euro zone unemployment rate dropped unexpectedly in June, falling from 11.6% to 11.5% as the number of people unemployed dropped significantly in the euro area.
Shares in Banco Espirito Santo plummeted 50% intraday after the company reported a €3.49 billion net loss in the second quarter. Earlier, the Bank of Portugal said BES had sufficient capital, but they warned yesterday that a capital increase was necessary.
Contrary to most other business confidence indicators, the Chicago PMI dropped sharply in July, falling from 62.6 to 52.6, while a slight pick‐up was expected. The outcome increases uncertainty ahead of tomorrow’s ISM reading.
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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