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LGT Navigator: Ain't no mountain high enough

February 9, 2021

While the real world continues to poke around in the fog of the corona crisis, some of the major stock indices continue to climb to new record highs. The rally is driven by hopes for further fiscal and monetary stimulus and a successful fight against the pandemic through the ongoing vaccination campaign and new approvals for additional vaccines.

Ain't no mountain high enough

On stock markets, the rally continued at the beginning of the week and some indices climbed to new record highs. Investors are pinning their hopes primarily on containment of the corona pandemic through the ongoing vaccination campaign and further approvals for Covid-19 vaccines. The positive mood is also supported by the prospect of a further economic stimulus package from Washington. The Dow Jones Industrial closed with a solid daily gain of +0.76% at 31'385.76 points only slightly below the current record high. The market-wide S&P 500 also climbed 0.74% to 3'915.59 points and the Nasdaq Composite ended the first trading day of the week with a plus of +0.95% at 13'987.64 points. Also in Europe, the positive market sentiment at the start of the week provided in part for new best values. Thus, the Dax in Frankfurt and the small cap indices MDax and SDax reached new records.

In Asia, the stock rally continued this morning. On a positive note, there was a sharp rise in car sales in China. In the world's largest market, sales in January were up +30% year-on-year. Sales reached 2.5 million vehicles at the beginning of the year, data from the China Association of Automobile Manufacturers (CAAM) showed. Futures markets in Europe are also signaling a friendly start to the stock market. 

Investors more pessimistic about economic outlook according to Sentix

The economic outlook has clouded in February, according to the latest survey results of the German financial analysis company Sentix. The economic indicator for the eurozone fell by 1.5 to minus 0.2 points, while the market had expected a slight improvement. Both the current assessment of the situation and the outlook were assessed more pessimistically. Overall, the analysts and investors surveyed assessed the outlook for Germany and the euro area as worse than in the previous survey. By contrast, the outlook for the US and Asia was perceived more positively. The decisive factor was the slower pace of vaccination, which could cause the European economy to miss the boat with the other world regions, Sentix commented.

ECB increases transparency

The European Central Bank (ECB) plans to make the results of its monthly survey of economists public from the middle of this year. The Survey of Monetary Analysts, which focuses on monetary policy, takes place eight times a year in conjunction with ECB Governing Council meetings. The results are to be published in aggregated form on the Friday following each ECB Governing Council meeting, starting June 18. The forecasts cover monetary policy parameters, financial market variables and economic measures.

Kick-off of second impeachment trial against Trump

For the first time in American history, a second impeachment trial against a president begins today. Although former President Donald Trump is no longer in office, Democrats want to hold him accountable for the storming of the Capitol by Trump's supporters nearly five weeks ago. Whether they achieve the necessary support of at least 17 Republicans in the Senate is highly questionable. The Debate is now scheduled to begin in the Senate today. The course of the impeachment proceedings has been agreed with the party leadership of the Republicans, i.e. with Mitch McConnell, as well as with the prosecutors and defense lawyers, commented the majority leader of the Democrats in the Senate, Chuck Schumer. The indictment accuses Trump of “incitement of insurrection.“ The main goal of the Democrats will be to make it impossible for Trump to run again in the 2024 presidential election.


Economic Indicators February 9

MEZ Country Indicator Last
08:00 GE Exporte (December, m/m) +2.3%
10:00 IT Industrial Production (December, y/y) -4.2%

Earnings Calendar February 9

Country Corporate Period
FR Total Q4
US Twitter Q4
US Cisco Q4


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