In New York, the Dow Jones Industrial declined by -1.03% and went out at 33,596.34 points. The S&P 500 closed at 3,941.26 points, losing -1.44% from the previous day's close. The most under pressure yesterday were technology stocks such as Meta, Apple and Amazon. The Nasdaq indices fell by about -2%. After Fed Chairman Jerome Powell recently signaled a more moderate pace regarding interest rate increases, the latest economic data - especially from the American labour market – indicate that the Fed must continue to raise interest rates sharply to moderate inflation. The Fed's final interest rate decision on December 14 is therefore eagerly awaited. Meanwhile, the yield on the ten-year US government bond is trading around 3.5%.
In the Asia-Pacific region, the stock indices initially rose for the most part on Wednesday morning after China announced a further easing of the strict pandemic measures. By the close of the stock market, however, the indices fell sharply and thus still followed the negative guidance from the US stocks. The mood was also dampened by weak data on China's foreign trade. Weak global demand and the Corona lockdowns in China caused Chinese exports to slump by -8.7% (in US dollars) in November compared with the same month last year. It was the second consecutive monthly decline. Imports fell by -10.6%, also much more sharply than forecast.
Philip Lane, chief economist of the European Central Bank (ECB), expressed confidence that inflation in the euro zone is approaching its peak. At present, however, it is still uncertain whether the peak has already been reached or will not be reached until early 2023. In October, the inflation rate had reached a record high of 10.6% and then declined to 10.0% in November. The ECB's next policy decision on December 15 is now eagerly awaited. Most recently, the ECB had stepped up its fight against inflation with sharp interest rate hikes of 75 basis points. According to the ECB's chief economist, further interest rate hikes will follow, but the extent of the previous interest rate steps must now also be considered.
In the US state of Georgia, Democratic Senator Raphael Warnock prevailed in the runoff election against Republican challenger Herschel Walker. The Democrats thus expand their razor-thin majority in the US Senate to 51 seats almost a month after the congressional elections. Walker received strong support from former President Trump, making him another Trump candidate who lost.
|07:45||SZ||Unemployment Rate (November)||2.1%|
|08:00||GE||Industrial Production (October, M/M)||+0.6%|
|11:00||EZ||GDP Q3 (q/q)||+0.2%|
|14.30||US||Non-Farm Productivity Q3 (q/q)||+0.3%|
|14:30||US||Unit Labor Cost Q3 (q/q)||+3.5%|
|UK||British American Tobacco||Q4 Sales|
|US||General Electric (Investor 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 intended only for your information purposes. It is not intended as an offer, solicitation of an offer, or public advertisement or recommendation to buy or sell any investment or other specific product. The publication addresses solely the recipient and may not be multiplied or published to third parties in electronic or any other form. The content of this publication has been developed by the staff of LGT and is based on sources of information we consider to be reliable. However, we cannot provide any confirmation or guarantee as to its correctness, completeness and up-to-date nature. The circumstances and principles to which the information contained in this publication relates may change at any time. Once published information is therefore not to be interpreted in a manner implying that since its publication no changes have taken place or that the information is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax or other matters of consultation, nor should any investment decisions or other decisions be made solely on the basis of this information. Advice from a qualified expert is recommended. Investors should be aware of the fact that the value of investments can decrease as well as increase. Therefore, a positive performance in the past is no reliable indicator of a positive performance in the future. The risk of exchange rate and foreign currency losses due to an unfavorable exchange rate development for the investor cannot be excluded. There is a risk that investors will not receive back the full amount they originally invested. Forecasts are not a reliable indicator of future performance. In the case of simulations the figures refer to simulated past performance and that past performance is not a reliable indicator of future performance.
The commissions and costs charged on the issue and redemption of units are charged individually to the investor and are therefore not reflected in the performance shown. We disclaim, without limitation, all liability for any losses or damages of any kind, whether direct, indirect or consequential nature that may be incurred through the use of this publication. This publication is not intended for persons subject to a legislation that prohibits its distribution or makes its distribution contingent upon an approval. Persons in whose possession this publication comes, as well as potential investors, must inform themselves in their home country, country of residence or country of domicile about the legal requirements and any tax consequences, foreign currency restrictions or controls and other aspects relevant to the decision to tender, acquire, hold, exchange, redeem or otherwise act in respect of such investments, obtain appropriate advice and comply with any restrictions. In line with internal guidelines, persons responsible for compiling this publication are free to buy, hold and sell the securities referred to in this publication. For any financial instruments mentioned, we will be happy to provide you with additional documents at any time and free of charge, such as a key information document pursuant to Art. 58 et seq. of the Financial Services Act, a prospectus pursuant to Art. 35 et seq. of the Financial Services Act or an equivalent foreign product information sheet, e.g. a basic information sheet pursuant to Regulation EU 1286/2014 for packaged investment products for retail investors and insurance investment products (PRIIPS KID).