The background to the recovery was that the US government slightly relaxed its spell against the Chinese technology giant Huawei. The Washington Department of Commerce has approved a 90-day license for US exports to Huawei and several of its affiliates. As a result, tech stocks, which were still under strong pressure at the beginning of the week, rose and the technology sector index rose by around +1.7%, making up around half of the previous day's loss. On Europe's stock exchanges, the correction in technology stocks resulted in daily gains for the indices. On Monday, sanctions against the Chinese network equipment supplier and smartphone manufacturer had put a noticeable strain on the tech industry and above all on the prices of chip manufacturers.
Japan's exports fell for the fifth consecutive month in April. Exports fell by -2.4% year-on-year. Analysts had expected an average decline of -1.8%. This seems to indicate that Japan will feel the direct effects of the trade conflict between the US and China.
In its economic outlook published yesterday, the Organization for Economic Co-operation and Development (OECD) emphasized the dangers to the world economy posed by increasing trade conflicts. The prospects are still bleak, OECD chief economist Laurence Boone summed up. For the current year, the organization is forecasting slightly lower global economic growth of +3.2% (previously +3.3%, 2018: +3.5%). The trade dispute between the US and China alone could affect global growth by more than 0.6 percent over two to three years. However, the OECD is more positive with regard to the US economy and is forecasting GDP growth of +2.8% this year (previously +2.6%) and +2.3% in 2020 (previously +2.2%). Further risks are an expansion of the trade conflict from the US to Europe, the continuing uncertainty regarding Brexit, as well as dangers from excessive indebtedness and deteriorating credit quality.
Britain's Prime Minister Theresa May has promised a vote by the London Parliament on a possible second Brexit referendum. The prerequisite is that MEPs wave through the draft law on an agreement for Britain's withdrawal from the EU in a second reading. Actually, the British should have left the EU on March 29. The deadline for leaving the EU has now been extended to October 31.
The outcome of the planned takeover of the American telecommunications company Sprint by the Deutsche Telekom subsidiary T-Mobile US appears uncertain after the Ministry of Justice, according to unconfirmed media reports, seems not to consider the concessions made by both companies to be sufficient for approval of the takeover.
|10:30||UK||Consumer Prices (Y/Y)||1.9%|
|10:30||UK||Core Consumer Prices (Y/Y)||1.8%|
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, +41 44 250 78 59, E-Mail: email@example.com
Source: LGT Bank (Switzerland) Ltd.
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