On Wall Street, the recovery course continued and the Dow Jones Industrial closed +0.74% higher at 34'807.46 points. The market-wide S&P 500 gained even more strongly by +1.13% to 4'511.61 points and on the technology exchange Nasdaq, the indices gained almost +2%. Sought-after financial stocks and good quarterly figures from the sports equipment supplier Nike provided support. In Asia, most stock indices also joined the positive guidance from overseas and trended in positive territory. In Tokyo, the 225-stock Nikkei index is up just under +3% and in Hong Kong, the Hang Seng index is also gaining around +1.4%.
It is noteworthy that a faster increase in key interest rates in the United States doesn't scare investors, thus the confidence in the Fed prevails. At the beginning of the week, Federal Reserve Chairman Jerome Powell held out the prospect of faster rate hikes in view of what he called “far too high” inflation. Thus, on its next interest rate decision on May 4, the Fed could well raise the key rate even more sharply by at least 50 basis points. Other top Fed officials, such as James Bullard, head of the St. Louis Federal Reserve, are also advocating a rapid tightening of monetary policy. The market now expects a probability of around 72% that the Fed will raise the key interest rate by 50 basis points in May, up from a previous probability of just under 50%. Meanwhile, the yield on ten-year US government securities climbed to 2.39%, its highest level since May 2019.
At the meeting of the heads of state and government of the European Union, plans were discussed, according to which the euro countries should jointly purchase gas, liquefied natural gas (LNG) and hydrogen in the future to fill their own gas storage facilities. The background is the war in Ukraine and the dependence on Russian gas supplies. The EU needs new partners, such as Qatar or the United Arab Emirates. Negotiations are also underway within the EU about capping gas prices. France, Italy, Belgium, and Spain, for example, are in favor of this. Germany, on the other hand, rejects such a mechanism.
At the upcoming EU summit, a solidarity fund for Ukraine is to be decided to support the reconstruction of a democratic Ukraine. The fund would initially provide emergency aid, but would then finance massive long-term investments to rebuild the economy. The EU wants to use it to tie Ukraine more economically to the West.
UN Secretary-General António Guterres is demanding an immediate ceasefire from Moscow and is warning the Kremlin that the illegitimate war of aggression against Ukraine is morally unacceptable, politically indefensible, militarily nonsensical, and ultimately unwinnable.
|08:00||UK||Consumer Prices (February, y/y)||+5.5%|
|08:00||UK||Producer Prices (February, y/y)||+9.9%|
|13:00||GE||Bundesbank President Nagel speaks|
|13:00||UK||Bank of England Governor Bailey speaks|
|13:00||US||Fed Chair Powell speaks|
|15:00||US||New Home Sales (February, m/m)||-4.5%|
|16:00||EZ||Consumer Sentiment (March)||-8.8|
|SZ||Meyer Burger Technology||Annual|
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 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.