On the New York Stock Exchange, the approaching monetary policy turnaround of the Federal Reserve caused losses in the standard stocks. The Dow Jones Industrial declined by -0.62% to 33'823.45 points. Meanwhile, the S&P 500 remained virtually unchanged at 4'221.86 points (-0.04%). As the interest rate turnaround in the US becomes more foreseeable, but the financing environment remains favorable, the Nasdaq technology exchange yesterday recorded another record high. In Asia, the stock indices developed at the end of the week without a clear trend.
The economic data published yesterday from the US were mostly mixed: The composite index of leading economic indicators rose strongly by +1.3%, as expected. On the other hand, the number of initial jobless claims surprisingly increased and the business climate barometer of the Philadelphia Fed – Philly Fed – signaled a slight weakening in the regional industrial sector.
Japan's central bank is maintaining its extremely loose monetary policy in the face of the ongoing uncertain pandemic situation and is even extending an aid program for companies that have been hit particularly hard by the crisis. The central bank in Tokyo is also likely to wait for the effect of the Olympic Games, both economically and in terms of the pandemic. In the near future, the Bank of Japan is unlikely to have much leeway.
The Swiss National Bank (SNB) did not identify any room for maneuver in its quarterly assessment and, as expected, left its monetary policy course unchanged. The Helvetic central bank is thus sticking to its negative interest rate of -0.75% despite expectations of stronger economic growth and rising inflation. Unsurprisingly, the SNB is also sticking to its assessment that the Swiss franc is still (too) highly valued. It will therefore intervene if necessary. In the latest forecasts, GDP growth of +3.5% is expected for the current year (previously 2.5-3.0%). At the same time, however, inflation is expected to average +0.4% in 2021 (previously +0.2%) and rise to +0.6% in 2022 (previously +0.4%). Compared with the rest of the world, however, this is still an extremely modest rate of inflation.
The Brazilian central bank tightened its key interest rate again, for the third time in a row, by three-quarters of a percentage point to 4.25% in an attempt to curb the sharp rise in inflation. In addition, the Banco do Brasil also held out the prospect of further interest rate steps. Brazil's inflation rate is currently around 8%, compared with around 2% a year ago.
The central bank in Ankara left its key interest rate unchanged at 19%, but in its statement showed its determination to continue to fight rising inflation. Against the background of inflation expectations, the current tight monetary policy course will be resolutely maintained, the central bank commented. The inflation rate in Turkey was 17% in May.
|08:00||GE||Producer Prices (May, y/y)||+5.2%|
|08:00||UK||Retail Sales (May, m/m)||+9.2%|
|08:00||UK||Retail Sales (May, y/y)||+42.4%|
|US||Johnson & Johnson||ESG Investor Update|
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.