Skip navigation Scroll to top
Scroll to top

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

 

LGT helps you make informed investment decisions

All about global economic and market trends at a glance

Subscribe to LGT's research newsletters

You can also follow us on Facebook or LinkedIn – or visit MAG/NET and discover interesting background articles. If you have questions, a consultant from the bank will be happy to help you.

Imprint
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, +41 44 250 78 59, E-Mail: lgt.navigator@lgt.com
Source: LGT Bank (Switzerland) Ltd.

Risk Disclosure (Disclaimer)
This publication is an advertising material / marketing communication. This publication is for your information only and is not intended as an offer, solicitation of an offer, or public advertisement to buy or sell any investment or other specific product. Its content has been prepared by our staff and is based on sources of information we consider to be reliable. However, we cannot provide any confirmation or guarantee as to its being correct, complete and up to date. The circumstances and principles to which the information contained in this publication relates may change at any time. Information that has been published should therefore not be understood as implying that no change has taken place since its publication or that it is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax-related or other consulting matters, nor should any investment decisions or other decisions be made on the basis of this information alone. It is recommended that advice be obtained from a qualified expert. Investors should be aware that the value of investments can fall as well as rise. Positive performance in the past is therefore no guarantee of positive performance in the future. Investments in foreign currencies are also subject to fluctuations in exchange rates. We disclaim all liability for any loss or damage of any kind, whether direct, indirect or consequential, which may be incurred through the use of this publication. This publication is not intended for persons subject to legislation that prohibits its distribution or makes its distribution contingent upon an approval. Any person coming into possession of this publication shall therefore be obliged to find out about any restrictions that may apply and to comply with them. In line with internal guidelines, persons responsible for compiling this report are free to buy hold and sell the securities referred to in this report.

US employment growth remains dynamic at the beginning of the year