The Dow Jones Industrial climbed on Tuesday above the mark of 34,000 points and closed at 34,152.01 points +0.71% higher than the previous day. The broad S&P 500 went out with a daily gain of +0.19% at 4,305.20 points. Support was provided by Home Depot, which reported a record quarter and the world's largest retailer Walmart, which increased sales in the reporting quarter and was more optimistic in the annual outlook. On the Nasdaq, however, the indices posted a decline of about -0.25%. In the US bond market, the yield of ten-year Treasuries stands at 2.81%, slightly higher than the previous day.
In the Asia-Pacific region, trading on the stock markets was inconsistent at midweek. In Hong Kong, the Hang Seng rises by around +0.8% and in Shanghai, the Composite Index rose by around +0.3%. Japan's Nikkei 225 goes about +1% higher out of the day's business, after Japan was reported for July with +19% export growth compared to the same month last year, which was above expectations. The backdrop is the strong recovery in auto exports.
The central bank of New Zealand attracted attention today by raising its key interest rate by a further half percentage point to 3.0%. In its outlook, the Reserve Bank of New Zealand assumes an increase of another 100 basis points to get inflation under control.
In the US, the number of housing starts fell surprisingly sharply in July. Compared with the previous month, housing starts fell by -9.6%, while analysts had expected a decline of 2.1%. At the same time, building permits, which are a key indicator of future construction activity, also fell by -1.3%, although a more pronounced decline of -3.3% had been expected. The background to this is the rise in mortgage interest rates and increased construction costs due to a shortage of materials and labor.
The outlook for the German economy has deteriorated significantly, according to the latest survey results from the Mannheim Center for European Economic Research (ZEW). The current economic barometer fell from minus 53.5 to minus 55.3 points in August, thus reaching its lowest level since October 2008. Analysts, on the other hand, had expected an increase to minus 52.7 points. The continuing strong increase in the cost of living and the expected additional costs for heating and electricity are weighing on the outlook for the consumer-related sectors of the economy in Germany, the ZEW commented. The assessment of financial analysts and investors surveyed for the euro zone was analogous. The corresponding indicator fell by 3.8 points to minus 54.9 points.
Increased imports and weakening exports caused the trade deficit in the euro zone to widen more sharply than expected in June. Seasonally adjusted, the deficit widened again to EUR 30.8 billion, a difference of EUR 3.6 billion from the previous month and closer again to the record deficit of EUR 32.3 billion recorded in April. Economists had forecast a decline in the deficit to EUR 22.0 billion. The background to this is not least the sharp rise in energy imports because of the Ukraine war and higher energy prices.
|08:00||UK||Consumer Prices (June, y/y)||+9.4%|
|08:00||UK||Producer Prices (June, y/y)||+16.5%|
|11:00||EZ||GDP Q2 (q/q)||+0.7%|
|14:30||US||Retail Sales (July, m/m)||+1.0%|
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, E-Mail: firstname.lastname@example.org
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).