On the US equity markets, the Dow Jones Industrial closed -0.19% lower at 34'894.12 points and was thus unable to recover from the previous losses. The S&P 500 rose slightly by +0.13% to 4'405.80 points and the technology exchange Nasdaq even went up by about half a percent. In Asia, meanwhile, the negative trend continued at the end of the week. In Tokyo, the Nikkei 225 index trades around -0.9% lower and in Hong Kong, the Hang Seng loses today even around -2.5%.
After the minutes of the latest Fed meeting published on Wednesday showed that the majority view in the monetary policy council (FOMC) is to start reducing bond purchases (QE) this year, the focus is now on the upcoming central bank meeting in Jackson Hole, Wyoming, on August 26-28. Fed Chairman Jerome Powell could use the opportunity to signal a turnaround in interest rates to the financial markets.
After the Empire State index of the New York Fed already indicated a weakening in the regional industrial sector, the Philly Fed index of the central bank of Philadelphia published yesterday confirmed this trend. According to the index, business confidence also deteriorated in August, and this for the fourth month in a row. The indicator fell by 2.5 points to 19.4, while analysts had expected an increase to 23.1 points. A value above zero points indicates an increase in economic activity, while a value below zero signals a decline. A more complete picture of the state of US industry will then be provided on September 1st by the national purchasing managers survey of the industry association ISM.
The weekly labor market data from the US signal a further recovery from the corona slump. Thus, the number of initial claims for unemployment benefits fell by 29'000 to 348'000 claims last week (consensus 364'000). Despite the recent decline, however, the number of initial jobless claims is still above the level seen before the corona crisis. In its minutes published on Wednesday (FOMC minutes), the Federal Reserve noted that the recovery in the labor market was progressing, but that the goal of full employment was still a long way off.
New York-based investment house Goldman Sachs expects the US economy to grow at a slightly slower pace in the third quarter. Against the backdrop of the spread of the delta variant, the bank lowered its forecast for an annualized growth rate from +9.0% previously to +5.5%. The main problems are the noticeable disruptions in the supply chains. For 2021, Goldman Sachs now expects economic growth of +6.0% (previously +6.4%) and for 2022 of +4.5% (previously +4.4%).
As expected, the Norwegian central bank left its key interest rate unchanged at zero percent. However, Norges Bank stated that an initial rate hike since the corona crisis is most likely as early as September. The background to this is an inflation rate of +3.0%, which is well above the central bank's target of two percent.
|08:00||UK||Retail Sales (July, y/y)||+7.4%|
|08:00||GE||Producer Prices (July, y/y)||+8.5%|
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.
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.