KBC Market Research Desk
KBC Bank
European shares dropped lower today as tensions between Russia and Ukraine flared up again. The Dax underperforms, losing about 1.4%. US Equities opened down too with the S&P again below the 2 000 level.
Russia has well over 1 000 troops operating inside East Ukraine, the Nato warned today, saying Putin is trying to prevent a defeat of separatists and wants to hold on to this area.
After months of consolidation, European Commission’s economic confidence weakened substantially in August due to a broad‐based deterioration in sentiment across sectors.
The Polish zloty is under pressure today, due to tensions between Russia and Ukraine, with EUR/PLN nearing the recent highs around 4.20. Polish central bank Governor Belka said the Russia‐Ukraine crisis will shave off 0.2‐0.3% of Poland’s growth.
Gold futures edged up today nearing again the $1300/ounce level as tensions between Russia and Ukraine increased again, weighing on sentiment today.
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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GBP/USD declines toward 1.2500 on renewed USD strength
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Gold extends daily slide toward $2,300 after US data
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Eurozone headline inflation remains stable at 2.4%. With higher energy prices and improving domestic demand, questions about the direction of inflation become louder.