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LGT Navigator: Stalemate

June 9, 2021

The stock market environment remains fundamentally friendly, but ongoing inflation and interest rate concerns, as well as high valuations, are putting pressure on investors' risk appetite. As a result, the indices on Wall Street moved sideways on Tuesday and investors seem to be waiting for new impetus. With excitement, the latest inflation data from the US and the interest rate decision of the ECB are already expected on Thursday.


The Dow Jones Industrial closed yesterday virtually unchanged at 34'599.82 points (-0.09%) but is only close to the record high reached about a month ago at 35'092 points. Sideways was also the motto for the S&P 500, which went out of trading on Tuesday at 4,227.26 points (+0.02%). On the technology exchange Nasdaq also lacked the impetus and so the daily balance remained with the Nasdaq 100 at 13'810.86 points (+0.06%) also “flat.”

On Asian stock exchanges no trend was discernible on Wednesday morning. In Tokyo, the 225-value Nikkei index -0.3% lower at 28'876 points and in Hong Kong, the Hang Seng index is also trading slightly lower at 28'750 points (-0.1%). On the Chinese mainland, however, the Shanghai Composite rose slightly by +0.2% to 3'588 points. The futures also give no clear direction for Europe's stock indices today so far. 

China's producer prices with strongest increase in 13 years

In China, prices at the producer level rose by +6.8% year-on-year in May, the strongest increase since 2008. Recent sharp increases in the prices of oil, iron ore and other metals drove producer prices up. These price increases could be passed on to consumers with a time lag. So far, however, consumer price inflation in the People's Republic has remained moderate at an annual rate of +1.3%.

World Bank raises global growth forecast

The Washington-based World Bank is slightly more optimistic in its forecast for the global economy published yesterday. A global growth rate of +5.6% is now expected for the current year. The current forecast is thus 1.5 percentage points higher than at the beginning of the year and holds out the prospect of the strongest economic recovery from recession since 1940. According to the World Bank, the global economy should benefit from US stimulus spending and faster growth in China. The agency sees risks above all from the “highly uneven” distribution of Covid-19 vaccines.

Euro economy: setback in the first quarter much smaller than feared

Economic output in the eurozone fell by -0.3% in the first three months of the current year compared with the previous quarter. However, the decline was only half as sharp as had been assumed in an initial estimate. But as GDP already contracted by a revised -0.6% in the final quarter of 2020 (previous calculation -0.7%), economists are talking about a recession.

Global supply chain problems shrink US trade deficit

The US trade deficit narrowed in April to USD 68.9bn in April from a record high of USD 75.03bn in March due to weaker imports amid intensified problems in global supply chains. Imports fell -1.4%, while exports rose +1.1%. Companies around the world are complaining of difficulties in meeting increased demand against the backdrop of the economic recovery.

Economic Indicators June 9

MEZ Country Indicator Last period
08:00 GE Exports (April, m/m) +1.2%
08:00 Ge Imports (April, m/m) +6.5%


Earnings Calender June 9

Country Company Period
AUT Voestalpine Y


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