KBC Market Research Desk
KBC Bank
-
European equities started the day on a strong footing, supported by constructive earnings and dipped only temporarily during the ECB press conference. Daily gains of the Euro Stoxx 50 hover around 0.50%. American markets also opened in positive territory but gains are more limited than in Europe.
-
Unsurprisingly, the ECB left its policy rate unchanged and maintains the pace of bond purchases. ECB present Draghi maintained a soft assessment. He acknowledged that the euro's strength "received some attention" and said a sudden change in financing conditions would be "the last thing the governing council wants". He also said "financing conditions remain broadly supportive to secure a sustained return of inflation rates towards our inflation aim".
-
UK June Retail Sales June surprised to the upside, helped by warm weather conditions and early timing of the Muslim festival of Eid. Retail sales excluding auto fuel rose 0.9% M/M (3.0% Y/Y) while only a 0.5% rise was expected (2.5%). In the previous month, retail sales had declined by 1.5%.
-
The weekly initial jobless claims in the US came in better than expected at 233K while 245k was expected, confirming healthy labour market conditions.
-
The Philadelphia Fed's headline General Business Activity index declined more than 8 points from 27.6 in June to 19.5 in July. Consensus expected a smaller decline to 23. The number however still points to solid expansion. The survey also showed that price pressures moderated but price expectations for the six months to come rose.
-
EU and UK negotiators ended their four-day round of talks today with little common ground found on the role of the European Court of Justice, the divorce bill or the Irish soft border. The clock is ticking on Brexit but talks on the free-trade agreement have to wait until "sufficient progress" has been made on the above mentioned issues.
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
USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected
USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
FBI cautions against non-KYC Bitcoin and crypto money transmitting services as SEC goes after MetaMask
US FBI has issued a caution to Bitcoiners and cryptocurrency market enthusiasts, coming on the same day as when the US Securities and Exchange Commission is on the receiving end of a lawsuit, with a new player adding to the list of parties calling for the regulator to restrain its hand.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.