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Markets looking for new clues in data-heavy week

Investors on stock markets seem to have regained some confidence at the end of a turbulent last week. Their fears of high interest rates receded somewhat into the background for the time being, following the latest data on consumer inflation expectations. Today, a data-heavy week started on a positive note in Asia. 

Shane Strowmatt, LGT
Reading time
5 minutes
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Looking at the week ahead, the bulk of macroeconomic data will be released in its second half, with Germany’s Consumer Price Index due out Wednesday. On Thursday, gross domestic product figures are set to be announced from the US and Switzerland. To finish the week, traders will sort through Friday’s consumer inflation data out of the euro area and US personal consumption expenditures for any clues as to when price increases could slow to the point that the Federal Reserve and European Central Bank begin cutting rates.

Falling inflation expectations by consumers weren’t enough to save US equity markets late last week. Consumers in the US now expect prices to increase 3.3% annually, down from a previous 3.5% expectation. The University of Michigan survey also yielded a final value for the Consumer Sentiment Index of 69.1, down 8.1 points from the previous month. Market participants however didn’t seem confident that the weakening consumer sentiment would be enough to convince the Federal Reserve that lower rates are needed. The Dow Jones Industrial closed at 39,069.59 points nearly flat compared to the last close. The S&P 500 gained 0.7% on Friday, closing at 5304.72 points, while the Nasdaq indices rose almost 1%.

In the Asia-Pacific region, stock markets rose on Monday after official data showed China's industrial profits grew in the first four months of the year. The People's Republic's industrial profits increased 4.3% year-on-year in the January-April period. Mainland China's benchmark CSI 300 index rose 0.2%, while the Hang Seng index in Hong Kong gained 0.4%. In Tokio, the Nikkei 225 rose 0.2% and the broader Topix was up 0.3%, recovering from Friday's losses. South Korea's Kospi traded up around 0.5%. Australia's S&P/ASX 200 gained 0.8%, snapping a four-day losing streak. Australia will release its inflation data for April on Wednesday.

The final estimate for German gross domestic product (GDP) came in at 0.2% growth in the first quarter. While this growth is moderate, it is a leap from the previous quarter’s contraction of 0.5% and has helped Europe’s largest economy avoid recession. Particularly construction and trade helped bolster economic growth to start the year.

Elsewhere in Europe the macroeconomic data was less rosy to end the week, with UK retail sales dropping at the fastest pace so far in 2024. Retail volumes fell 2.3% in April, a much larger decrease than economists’ expectations.

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: Germany’s ifo Business Climate Index.


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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.

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