Friday, 28 October 2022 Dear reader, There will be no KBC Economics Markets reports on Monday October 31 and Tuesday November 01. Please click here to read the PDF version Markets • The ECB hiked its policy rates by another 75 bps yesterday, bringing the total effort to 200 bps Read more…
Sunset Thursday, October 27, 2022 Daily Market Overview Click here to read the PDF-version of this report. Markets • The ECB raised its key policy rates by the expected 75 bps for a second time straight. The deposit rate now stands at 1.5%. The statement contained some dovish twists compared to the Read more…
Thursday, 27 October 2022 Please click here to read the PDF version Markets • This week’s correction higher in core bonds continued yesterday. The Bank of Canada’s decision to “only” hike by 50 bps (see below) added to the case that the Fed could do the same from December against Read more…
Sunset Wednesday, October 26, 2022 Daily Market Overview Click here to read the PDF-version of this report. Markets • Last week’s Fed comments/press rumours suggesting that the Fed might debate a slowdown of its 75 bps rate hike pace from December were a good enough reason for markets to adjust positions after Read more…
Wednesday, 26 October 2022 Please click here to read the PDF version Markets • Q3 corporate earnings this week add to the market shift away from inflation worries to recession risks. The likes of Microsoft and Alphabet recorded slower sales growth/disappointing digital ad revenue as rising costs squeeze companies’ marketing Read more…
Sunset Tuesday, October 25, 2022 Daily Market Overview Click here to read the PDF-version of this report. Markets • The correction higher on core bond markets continues today. US yield drop 4.7 bps (2-yr) to 7.6 bps (7-yr) with the belly of the curve outperforming the wings. The German yield curve bull flattened Read more…
Tuesday, 25 October 2022 Please click here to read the PDF version Markets • UK Gilts hugely outperformed German Bunds and US Treasuries as it became clear that Rishi Sunak would become the next Prime Minister. The main move occurred at the start of trading after ex-PM Johnson dropped out Read more…
Sunset Monday, October 24, 2022 Daily Market Overview Click here to read the PDF-version of this report. Markets • Investor attention was focused on the release of PMI business confidence today. As one could have expected, they didn’t really paint a rosy picture on the European economy. They scream “stagflation” with the Read more…
Monday, 24 October 2022 Please click here to read the PDF version Markets • The US yield curve turned less inverse at the 2-10 part last Friday with yields dropping 0.9 bps (10-yr) to 13.7 bps (2-yr). The very long end underperformed, still adding 10 bps (30-yr). A doji-like pattern Read more…
Sunset Friday, October 21, 2022 Daily Market Overview Click here to read the PDF-version of this report. Markets • It’s rather unusual that US, German and UK yield curve all move in a different direction, yet this week it was the case. UK Gilts obviously outperformed US Treasuries and German Bunds. The UK Read more…