KBC Market Research Desk
KBC Bank
Risk sentiment on equity markets was strong today despite a new cycle low for the oil price. European indices gain up to 2%, while US equities add 1‐1.5%. The latter are also supported by a very strong NFIB Small Business Optimism.
The United Arab Emirates’ oil minister said that OPEC will stand firm on its decision to keep output unchanged, keeping the oil price under pressure. The Brent oil price is hovering close to $45/barrel. The Russian ruble came under renewed pressure, losing more than 4% against the euro.
US NIFB small business confidence improved further in December, rising above 100 for the first time in more than 8 years. Improving expectations for sales and hiring supported the headline reading.
The Portuguese treasury launched a new 30‐yr benchmark bond via syndication. It’s the first time since the EU/IMF rescue and only the second time in the country’s history. Additionally, Portugal launched a new 10‐yr benchmark deal as well.
Sweden’s CPI inflation dropped less than expected in December, falling from ‐0.2% Y/Y to ‐0.3% Y/Y. Also core inflation eased less than expected, easing pressure on the Riksbank to keep its policy extremely easy for longer. EUR/SEK dropped from 9.57 to 9.46 currently.
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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