On Wall Street, stock indices posted losses after the weekend extended by “Labor Day”. The Dow Jones Industrial closed at 35'100.00 points, a daily loss of -0.76%. The market-wide S&P 500 lost -0.34% and exited at 4'520.03 points. At the same time, the technology exchange Nasdaq achieved record values again thanks to the demand for the large tech stocks. Now, the regular economic report of the Federal Reserve, the so-called Beige Book, which is due this evening, is awaited with excitement. This will provide information on the state of the world's largest economy and will serve the Fed's committee (FOMC) as a basis for decisions on monetary policy.
On the Asian stock exchanges, the focus is also on the further action of the major central banks and the economic concerns in connection with the pandemic and the still low vaccination rates.
The latest survey results from the Center for European Economic Research (ZEW) reinforced the impression that the economic recovery in Germany and the euro zone has cooled further. The economic expectations index for Germany fell from 40.4 points in August to 26.5 points in September, marking the fourth consecutive decline. The financial professionals surveyed by ZEW were particularly concerned about supply chain problems and the related shortage of materials, for example in the automotive industry or the construction sector. As a result of the slowdown, the financial experts also expect the current high level of inflation to decline over the next six months.
The economy in the eurozone grew somewhat more strongly in the second quarter than previously expected. According to revised data from the statistics office, gross domestic product increased by +2.2% compared with the previous quarter. In a first estimate, Eurostat had still assumed +2.0%. In the previous two quarters, the euro economy had contracted by -0.3% and -0.6% respectively due to the measures taken to contain the pandemic. Looking at the four largest economies in the eurozone, Spain posted the strongest growth of +2.8%, followed by Italy (+2.7%), Germany (+1.6%) and France (+1.1%).
Economic growth in Japan in the second quarter was slightly stronger than originally estimated, according to revised data. Gross domestic product expanded at an annualized rate of +1.9% in the period from April to June compared with the previous quarter (first +1.3%). Business investment in particular was stronger than initially thought.
|10:00||IT||Retail Sales (July, y/y)||+7.7%|
|20:00||US||Fed Beige Book|
|GE||Merck KGaA Capital Markets Day|
|USA||Moderna Research & Development Day|
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Source: LGT Bank (Switzerland) Ltd.
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