KBC Market Research Desk
KBC Bank
European shares opened lower this morning, copying the correction in US Equities late yesterday. The further drop in the oil price kept shares under pressure. Most European indices trade 1.5% lower. In the US, stocks opened lower too with the S&P shedding 0.4%.
The International Energy Agency lowered today its outlook for global demand growth in 2015 and warned that if OPEC maintained production levels, the oversupply would reach 2 million barrels per day, keeping the price under further downward pressure. The Brent oil price dropped to new 5‐year lows, trading currently at $62.5/barrel.
Banks stepped up their repayments of old LTRO loans, as the ECB said banks will repay almost €40 billion of emergency loans, adding to pressure on the ECB to take further action to meet its balance sheet target.
US PPI inflation slowed from 1.5% Y/Y to 1.4% Y/Y in November, in line with expectations. Core PPI excluding food & energy stabilized at 1.8% Y/Y as downward price pressures were mainly based in energy.
University of Michigan consumer confidence was much better than expected. In December, the indicator rose from 88.8 to 93.8 (89.5 expected), further confirming strength in consumer sentiment after yesterday’s strong retail sales.
Consumers appear to be drawing confidence from the lower oil price.
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.
Recommended Content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.