Sep 19, 2018
LGT Navigator: Investors react calmly to renewed escalation
The reaction from Beijing regarding the renewed escalation of the trade dispute between the USA and China was not long in coming. China will take retaliatory measures at the same time as the new US tariffs. However, investors now seem familiar with the risk and the trade conflict, at least the one between the US and China seems to be priced in to a certain extent.
The ECB's cautious bias toward an interest rate turnaround, despite the announcement to end its billion-dollar bond purchase program probably at the end of this year, weakened the euro significantly. The ECB maintained its key interest rate at a record low and remained extremely cautious in its communication. At the same time, the Bank of Japan also left its key interest rates unchanged and even lowered its inflation expectations.
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Sep 18, 2018
LGT Navigator: Trump increases pressure on China
Investors' appetite for risk remained low at the beginning of the trading week against the backdrop of the ongoing trade dispute between the US and China. US President Trump remains firm in his stance and has announced that he will effectively enforce the threatened 10% punitive tariffs on USD 200bn of Chinese products. In addition, the US government has announced that the levy will more than double next year. Given the escalation, China is now likely to cancel the scheduled trade talks with the US.
The ECB's cautious bias toward an interest rate turnaround, despite the announcement to end its billion-dollar bond purchase program probably at the end of this year, weakened the euro significantly. The ECB maintained its key interest rate at a record low and remained extremely cautious in its communication. At the same time, the Bank of Japan also left its key interest rates unchanged and even lowered its inflation expectations.
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Sep 17, 2018
LGT Navigator: Trade conflict continues to smoulder
Initially disappointed hopes of a rapprochement in the trade dispute be-tween the US and China led to renewed selling pressure on Asian stock markets at the beginning of this week. Although both sides had signaled willingness to negotiate, US President Trump holds to his tough stance, and continues to threaten tariffs on Chinese goods.
The ECB's cautious bias toward an interest rate turnaround, despite the announcement to end its billion-dollar bond purchase program probably at the end of this year, weakened the euro significantly. The ECB maintained its key interest rate at a record low and remained extremely cautious in its communication. At the same time, the Bank of Japan also left its key interest rates unchanged and even lowered its inflation expectations.
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Sep 14, 2018
LGT Navigator: ECB communicates faster end to bond purchases
As expected, the European Central Bank (ECB) left its key interest rates unchanged. However, central bank president Mario Draghi announced that the ECB will reduce the pace of its multi-billion bond purchases to EUR 15bn (instead of EUR 30bn) per month as early as October. The end of the purchasing program is still planned for December 2018 and a turn towards higher interest rates is not expected until autumn 2019 at the earliest.
The ECB's cautious bias toward an interest rate turnaround, despite the announcement to end its billion-dollar bond purchase program probably at the end of this year, weakened the euro significantly. The ECB maintained its key interest rate at a record low and remained extremely cautious in its communication. At the same time, the Bank of Japan also left its key interest rates unchanged and even lowered its inflation expectations.
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Sep 13, 2018
LGT Navigator: Washington signals Beijing readiness to talk
The US has invited China to new talks to settle the trade dispute, which should provide some relief on the stock markets. In Asia, some indices rose strongly. Furthermore, monetary policy announcements of the ECB and Bank of England will be in investors' focus.
The ECB's cautious bias toward an interest rate turnaround, despite the announcement to end its billion-dollar bond purchase program probably at the end of this year, weakened the euro significantly. The ECB maintained its key interest rate at a record low and remained extremely cautious in its communication. At the same time, the Bank of Japan also left its key interest rates unchanged and even lowered its inflation expectations.
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