Jul 18, 2018
LGT Navigator: Fed on course, despite trade war risks
US Federal Reserve Chairman Jerome Powell's statements in his semiannual monetary policy report to the US Senate's Banking Committee pointed to an unchanged Fed course of further gradual interest rate hikes. Despite the risks of the trade conflict, Powell continues to see the US economy on the upswing. With the right monetary policy, the labor market will remain strong in the coming years and inflation will remain close to two percent, Powell said.
The ECB's cautious bias toward an interest rate turnaround, despite the announcement to end its billion-dollar bond purchase program probably at the end of this year, weakened the euro significantly. The ECB maintained its key interest rate at a record low and remained extremely cautious in its communication. At the same time, the Bank of Japan also left its key interest rates unchanged and even lowered its inflation expectations.
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Jul 17, 2018
LGT Beacon: The "trade war" favors a counter-cyclical trading approach
The escalating trade disputes could – eventually – result in more open global markets, at least among strategically allied nations with similar interests. In the meantime, however, the U.S. approach to strong-arm its trade partners into making big concessions is likely to keep disrupting markets. We thus remain inclined to trim equities during rallies.
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Jul 17, 2018
LGT Navigator: Investors remain cautious before Powell speech
Before the eagerly awaited congressional hearing of Fed President Jerome Powell, stock market trading is likely to be restraint. Asian indices were mixed today after disappointing Netflix subscriber numbers dampened Wall Street's enthusiasm for the reporting season. In Tokyo, the Nikkei 225 gained after a holiday on Monday and thanks to a weaker yen.
The ECB's cautious bias toward an interest rate turnaround, despite the announcement to end its billion-dollar bond purchase program probably at the end of this year, weakened the euro significantly. The ECB maintained its key interest rate at a record low and remained extremely cautious in its communication. At the same time, the Bank of Japan also left its key interest rates unchanged and even lowered its inflation expectations.
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Jul 16, 2018
LGT Navigator: Kickoff to corporate earnings season
Hopes for strong company reports gave the stock markets in Europe and the USA a slight boost on Friday. The first results of the corporate earnings season came in better than expected.
The ECB's cautious bias toward an interest rate turnaround, despite the announcement to end its billion-dollar bond purchase program probably at the end of this year, weakened the euro significantly. The ECB maintained its key interest rate at a record low and remained extremely cautious in its communication. At the same time, the Bank of Japan also left its key interest rates unchanged and even lowered its inflation expectations.
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Jul 13, 2018
LGT Navigator: US inflation reaches highest level in more than six years
In June, inflation in the USA rose to its highest level since February 2012. The annual inflation rate climbed from +2.8% to +2.9% and the core inflation rate also climbed from +2.2% to +2.3%.
The ECB's cautious bias toward an interest rate turnaround, despite the announcement to end its billion-dollar bond purchase program probably at the end of this year, weakened the euro significantly. The ECB maintained its key interest rate at a record low and remained extremely cautious in its communication. At the same time, the Bank of Japan also left its key interest rates unchanged and even lowered its inflation expectations.
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