The Dow Jones Industrial closed Tuesday +2.15% higher than last Friday at 30,530.25 points. This allowed the Dow to stabilize above the 30,000 mark again for the time being, after the prospect of rapidly rising interest rates had pushed the indices on the New York Stock Exchange to the lowest levels since the end of 2020. The S&P 500 also rose sharply by +2.45% to 3,764.79 points and on the technology exchange Nasdaq, the indices also traded around +2.5% higher. However, investors' fears that the global economy could plunge into recession against a backdrop of high inflation, monetary policy reversals by central banks and ongoing geopolitical uncertainties remain at the core. New York-based investment bank Goldman Sachs now believes there is a 30% chance that the US economy will slide into recession next year. In the bond market, the yield on ten-year US government bonds is trading at 3.28%, slightly below the eleven-year high of 3.49% reached last week. In Asia, most stock indices are already trending lower again today. Interest rate and inflation concerns remain the focus here. Meanwhile, the Japanese yen fell against the US dollar to a 24-year low.
In the United States, sales of existing homes continued to fall in May. Compared with the previous month, -3.4% fewer sales were registered, marking the fourth consecutive decline. The National Association of Realtors (NAR) expects a further decline in sales figures in the coming months due to the sharp rise in mortgage rates.
The Federation of German Industries still expects economic growth of +1.5% in the current year compared with the forecast at the beginning of the year of +3.5%. The industry is going through a double crisis with the effects of the pandemic and the Ukraine war. Regarding dependencies on Russian energy, BDI President Siegfried Russwurm said the war had exposed the Achilles' heel of German industry and people had neglected the risk – “now it's burning like a torch.” An interruption in gas supplies would have catastrophic effects on manufacturing industry and would inevitably send Germany's economy into recession, the industry association warned.
|08:00||UK||Consumer Prices (May, y/y)||+9.0%|
|08:00||UK||Producer Prices (May, y/y)||+14.0%|
|15:00||SZ||SNB President Jordan speaks|
|15:30||US||Fed Governor Powell speaks|
|SWE||Volvo||Capital Markets Day|
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, E-Mail: email@example.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.