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Sep 17, 2014 7:39 AM       Weekly Market Comment  EN | DE

LGT Beacon: Tactical Asset Allocation for Q4/2014

The prospect of Scottish independence and the latest ECB decisions prompted us to close a long GBP position and short the EUR. Beyond that, we trimmed our exposure to stock markets in Europe and the US, mostly in favor of Asian equities and Emerging Markets bonds. As a result, our overall equity overweight has declined slightly, but remains consistent with a constructive global economic outlook, including an improved assessment of the emerging economies.

From: LGT Beacon Abo

Sep 17, 2014 6:49 AM       Daily Market News   EN | DE

Disappointing ZEW data

Today, we expect the FOMC decisions on rates and pace of the current quantitative easing program not to bring any material changes. However, a less dovish stance by Janet Yellen could send longer maturity yields in USD higher, which would find further support if CPI data (ex food and energy expected at 1.9% YoY) were to surprise to the upside. While CPI data for the Eurozone will also be reported today, markets had to digest the slump in ZEW survey results (index values range from +100 to -100) released yesterday. The reading on the assessment of the current situation for Germany was 25.4 (vs 40.0 expected), while equivalent data for the Eurozone came in at 14.2 (vs 23.7 previous). Hence, European credit spreads continued in their moderate widening mode and equity markets moved further south. US markets showed a mixed picture in both credit and equity markets, but volatility of volatility increased further and remains in a sustained uptrend during Q3 2014, essentially indicating increased uncertainty.

From: LGT Navigator Abo

Sep 16, 2014 8:42 AM       Daily Market News   EN | DE

Weaker than expected US production data

The recent rise in longer dated US Treasury bond yields ended yesterday upon weaker than expected US production data. Both Capacity Utilization (78.8% vs 79.3% expected) and Industrial Production (MoM, -0.1% vs 0.3% expected) came in below consensus expectations. Core European yields declined in sympathy with Germany taking the lead again. Given the negative economic headlines from the US and increasing uncertainties surrounding the Scotland referendum credit spreads widened. High beta segments like high yield, subordinated financials and emerging markets increased by 5-8 basis points. Unsurprisingly, equity markets showed a negatively biased, albeit patchy picture with most European markets and especially the US Nasdaq in the red. Today, a weaker than expected ZEW survey reading for the Eurozone could put sustained weight on these markets.

From: LGT Navigator Abo

Sep 15, 2014 9:15 AM       Daily Market News   EN | DE

Surprise interest rate cut by ECB

Contrary to the initial market reaction following the surprise rate cut by the ECB, risky assets weakened somewhat last week. While major 10-year benchmark yields rose, stock markets weakened slightly and credit spreads widened. Again, geopolitics took center stage with expanded sanctions against Russian companies and the recent polls on the Scottish independence vote. On this background and with some important data releases during the week (i.e. US and Eurozone CPI, US Fed meeting), we would expect somewhat elevated volatility in the following days. This seems tho be confirmed with the negative opening of the asian markets into the week.

From: LGT Navigator Abo

Sep 11, 2014 8:16 AM       Daily Market News   EN | DE

Is Apple's iWatch a turning point for Swatch?

Shares of Swiss watch maker Swatch fell as much as 2.6% in Zurich trading, closing 1.75% lower. This after Apple introduced its long-awaited iWatch. While the mulit-functional Apple timepiece might eventually impact the whole USD 60bn Swiss watch industry, the lower-end of the market will probably feel the pressure first. The threat is biggest for small, independent watch makers, but also Swatch, which gets about a fifth of all sales from namesake plastic watches and the Tissot brand. The Apple Watch will have a starting price of USD 349 while other models, including one sporting a gold band may cost more. Swatch?s Tissot T-Touch Expert Solar has a compass, tells the altitude and runs on solar power, but costs about USD 1,250.

From: LGT Navigator Abo