US existing home sales dropped twice as much as expected in February

  • European shares opened lower and tried to reverse their losses early in the session, but attempts failed around noon, when stocks dropped again. Currently, most European indices trade 0.5% lower. US Equities trade slightly lower too, but losses are more limited.

  • ECB’s Liikanen reiterated that policy rates are expected to remain at present or lower levels for the an extended period of time. Bank of France governor Villeroy defended the use of negative rates but also warned it has limits.

  • The German economy started 2016 in good shape thanks to industrial production gaining traction and domestic demand providing support, the German Finance Ministry said today. The Bundesbank however warned that order data point to slowing growth momentum in the second quarter.

  • After reaching its second‐highest level since 2007 in January, US existing home sales dropped twice as much as expected in February. Existing home sales fell by 7.1% M/M to a total of 5.08 million, inventories however picked up sharply, boding well for future activity.

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.