Despite the negative economic news, the Dow Jones Industrial rose at the beginning of the week and reached 33,912.44 points (+0.45%), the highest value in almost three and a half months. Since mid June the Dow thus trades about +14% higher. The S&P 500 gained +0.4% and went out at 4,297.14 points. On the Nasdaq, the indices gained about +0.75%.
Asia's stock markets benefited in part from the positive guidance from the US, but no consistent trend was observed. In Tokyo, the 225-value Nikkei index was unchanged from the previous day. While in Hong Kong, the Hang Seng lost about -0.5%, the Composite Index in Shanghai increased by +0.2%.
Meanwhile, the geopolitical tensions intensified again. Thus, China has announced new maneuvers around Taiwan out of anger over the visit of another delegation of the US Congress in Taipei. Taiwan's President Tsai Ing-wen received five members of Congress led by Democratic Senator Ed Markey on Monday.
The Federal Reserve Bank of New York's Empire State index signaled a significant deterioration in sentiment in the region's industrial sector, plunging 42.4 points. At minus 31.3 points, the widely followed leading indicator is now at its lowest level since May 2020. According to the Fed's data, a sharp decline in new orders and shipments were particularly responsible.
The National Association of Home Builders' (NAHB) housing market index indicated a continued deterioration in US housing market sentiment with a renewed weakening – the eighth consecutive monthly decline. The indicator fell six points to 49.0 in August, its lowest reading since May 2020, while analysts on average had expected a smaller decline to 54.0. According to NAHB, the background is the tighter financing conditions and higher prices.
|08:00||UK||Unemployment Rate (June)||3.8%|
|11:00||GE||ZEW Economic Expectations (August)||-53.8|
|11:00||EZ||ZEW Economic Expectations (August)||-51.1|
|11:00||EZ||Trade Balance (June)||EUR -26.3bn|
|14:30||US||Housing Starts (July, m/m)||-2.0%|
|14:30||US||Building Permits (July, m/m)||+0.1%|
|15:15||US||Industrial Production (July, m/m)||-0.2%|
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, E-Mail: email@example.com
Source: LGT Bank (Switzerland) Ltd.
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