KBC Market Research Desk
KBC Bank
European equity markets trade 0.5% to 1% higher with a German outperformance on the back of a stronger German ZEW‐indicator. US equity indices open modestly higher as well with the S&P 500 at a new all‐time high.
Shinzo Abe, Japan’s prime minister, has gambled his political future by calling a snap election as he seeks to push back a scheduled tax increase, arguing that recovery is “the only path” available to the world’s third‐largest economy.
The German government’s hopes that business would jolt the country’s stagnating economy out of its torpor looks set to be disappointed. A survey by the business‐funded IW economic institute showed a growing number of German companies were planning to tighten spending next year. The German ZEW investor confidence, on the other hand, rose for the first time in 11 months.
Car sales in the European Union gained pace for the second month in a row in October, shrugging off concerns that the recovery of Europe’s automotive markets was losing steam at the end of the year.
UK inflation accelerated to 1.3 per cent in October, narrowly ahead of analyst forecasts and just a week after the Bank of England warned the rate could fall below 1 per cent in the coming months.
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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