Skip navigation Scroll to top
Scroll to top

LGT Navigator: Increased nervousness among tech stock investors

April 27, 2022

On the New York Stock Exchange, prices slid on Tuesday. While the mood at the beginning of the week had turned positive and was carried by optimism, interest rate, inflation and economic fears now dominated again. On the Nasdaq technology exchange, the strongest daily loss since September 2020 was observed. Concerns are also the further escalation in the conflict with Russia and the impact of the corona lockdowns in China.

Increased nervousness among tech stock investors

On Wall Street, stock indices fell sharply, especially towards the close of trading. The Dow Jones Industrial closed -2.38% lower at 33,240.18 points, the lowest level since mid-March. The broad S&P 500 fell by -2.81% to 4,175.20 points. On the Nasdaq, the indices slumped by about -3.9%, falling to the lowest level since May 2021. While the latest economic data had no impact on market activity, the quarterly results of the major US technology stocks were the focus. Google parent company Alphabet and Microsoft presented their quarterly figures after the close of trading yesterday and do not seem to have convinced investors. The shares of Alphabet fell after the close of trading by about -3% and the Microsoft share had to give up about -2.5%. In the next few days, other tech heavyweights such as Apple, Amazon or Meta (Facebook) will follow. In Asia, the sell-off on the stock markets continued in part on Wednesday. In Tokyo, the Nikkei 225 index trades around -1.8% lower.

American consumers more pessimistic

The mood of US consumers has deteriorated in April, the latest survey results of the New York economic research institute The Conference Board. The corresponding confidence barometer dropped from 107.6 to 107.3 points. Analysts had actually expected an improvement to 108.2 points.

Tensions between West and Russia accelerate further

The United States has invited about 40 countries to consultations on the further course of action in the Ukraine cherry. The conference was held at the largest US air base outside the United States in Rammstein, Germany. US Defense Secretary Lloyd Austin and US Secretary of State Antony Blinken were joined by NATO Secretary General Jens Stoltenberg. The consultations are intended to “ensure Ukraine's enduring security and sovereignty, as well as Ukraine's defense needs beyond Russia's war of aggression.”

Meanwhile, Russia announced it would halt its gas supplies to Poland and Bulgaria.

EU exports to UK slowed by Brexit

Exports from the European Union to the United Kingdom because of Brexit, respectively, the trade agreement agreed at the end of 2020 downright collapsed. A recent study by the London School of Economics and Political Science (LSE) highlighted that trade is now "significantly disrupted" and has led to a “sudden and sustained” decline in imports from the EU. British exports to the EU, on the other hand, had declined to a small extent and only temporarily.

  

Economic Indicators April 27

MEZ Country Indicator Last period
08:00 GE GfK Consumer Climate (May) -15.5
08:45 FR Consumer Sentiment (April) 91.0
10:00 SZ ZEW Economic Expectations (April) -27.8
13:30 EZ ECB President Lagarde speaks
16:00 US Pending Home Sales (March, m/m) -4.1%
18:00 EZ ECB President Lagarde speaks

 

Earnings Calender April 27

Country Company Period
SZ Credit Suisse Q1 
SZ STMicro Q1 
GE Mercedes-Benz Group Q1 
GE Deutsche Bank Q1 
GE Puma Q1
FR Schneider Electric Q1 
FR Air Liquide Q1
ESP Iberdrola Q1
SWE Telia Q1
SWE Skandi Enskilda Banken Q1
SWE Svenska Handelsbanken Q1
FIN Kone Q1
UK Llyods Banking  Q1
UK London Stock Exchange Q1
US Meta Q1
US Amgen Q1
US Ford Motor Q1
US PayPal Q1
US T-Mobile US Q1

 

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, 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.