At the beginning of the week, there was another sell-off on the Nasdaq technology exchange. The indices slumped by around -4% and fell to the lowest level since November 2020. But also, the standard stocks came under pressure on Monday. Thus, the Dow Jones Industrial closed almost -2% lower at 32'245.70 points and the broad S&P 500 gave up -3.2% to 3'991.24 points. Meanwhile, yields on the bond market eased slightly again, with the yield on ten-year US government bonds falling to 3.0%.
In Asia, too, the interest rate and economic concerns caused lower share prices. In Tokyo, the Nikkei 225 fell at times by -1.8% and the most important company in Shanghai and Shenzen, the CSI 300, lost at times around -1.5%.
The outlook for economic development in Germany and the eurozone deteriorated for the third month in a row in May. This is indicated by the latest survey results of the German financial market analysis company Sentix. The economic indicator fell from minus 18 to minus 22.6 points and thus reached its lowest level since mid-2020, primarily due to the war in Ukraine with all its negative repercussions, but also to the global supply chain problems, which have been further exacerbated by the lockdowns in China, and not least the more restrictive monetary policy stance of the major central banks.
Chinese exports fell by just under -4% in April compared with the same period last year. This means that the pace of growth of China's exports has slowed to the fastest since June 2020. At the same time, imports are stagnating. China exported just under +8% more to the European Union in March than in the same period of the previous year. At the same time, however, imports from the EU to the People's Republic slumped by around -12%. Overall, foreign trade accounts for around one third of China's economic output. China's foreign trade is being held back in particular by the strict pandemic measures. However, despite the high economic costs, the Chinese leadership intends to stick to its zero-tolerance policy.
|10:00||IT||Industrial Production (March, y/y)||+3.3%|
|11:00||GE||ZEW Economic Expectations (May)||-41.0|
|16:00||GE||Bundesbank President Nagel speaks|
|19:20||EZ||ECB Vice President De Guindos speaks|
|GE||Porsche Automobil Holding||Q1|
|FR||Renault||Capital Markets Day|
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Source: LGT Bank (Switzerland) Ltd.
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