Jul 20, 2018
LGT Navigator: Trade war keeps markets on tenterhooks
The smoldering trade conflict with the USA continues to cause capital market investors headaches. According to a report in the Wall Street Journal, resistance to the special tariffs on car imports announced by President Trump is expected to increase in the USA. There was a contradiction both in industry and in Congress. Yesterday, the EU announced that it would take retaliatory action if the US government imposed higher import duties
on European cars.
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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Jul 19, 2018
LGT Navigator: Investors assessing mixed earnings picture
Investors' focus remains on corporate earnings results, while quarterly results are mixed so far. The EU Commission caused a stir in the market when it fined Google a record EUR 4.3bn for illegal practices on the Android mobile phone operating system.
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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Jul 18, 2018
LGT Navigator: Fed on course, despite trade war risks
US Federal Reserve Chairman Jerome Powell's statements in his semiannual monetary policy report to the US Senate's Banking Committee pointed to an unchanged Fed course of further gradual interest rate hikes. Despite the risks of the trade conflict, Powell continues to see the US economy on the upswing. With the right monetary policy, the labor market will remain strong in the coming years and inflation will remain close to two percent, Powell said.
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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Jul 17, 2018
LGT Beacon: The "trade war" favors a counter-cyclical trading approach
The escalating trade disputes could – eventually – result in more open global markets, at least among strategically allied nations with similar interests. In the meantime, however, the U.S. approach to strong-arm its trade partners into making big concessions is likely to keep disrupting markets. We thus remain inclined to trim equities during rallies.
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Jul 17, 2018
LGT Navigator: Investors remain cautious before Powell speech
Before the eagerly awaited congressional hearing of Fed President Jerome Powell, stock market trading is likely to be restraint. Asian indices were mixed today after disappointing Netflix subscriber numbers dampened Wall Street's enthusiasm for the reporting season. In Tokyo, the Nikkei 225 gained after a holiday on Monday and thanks to a weaker yen.
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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