After the recent profit-taking, prices on Wall Street and in Asia rose again. The Dow Jones Industrial closed with a solid daily gain of +0.93% at 34'137.31 points, only not far from the record high of 34'256 points reached only last Friday. The broad S&P 500 also gained nearly +1% to 4'173.42 points, and investors also picked up on the Nasdaq. The Nasdaq 100 went out with a plus of +0.91% at 13'935.15 points. Among the individual stocks, the shares of Netflix were in the spotlight. The streaming service had gained significantly fewer users than expected in the first quarter due to a lack of new movie and series hits and missed its own target as well as market expectations despite increased profit and revenue. As a result, the stock fell almost -9% at times and closed around -7% lower.
This afternoon at 13:45 (CET), the focus is clearly on the monetary policy announcement of the European Central Bank (ECB). While no adjustment of monetary policy is expected in the capital markets, the statements of ECB President Christine Lagarde should provide an indication of how the central bank assesses the economic situation as well as the outlook against the backdrop of the pandemic. Against the backdrop of the third corona wave in Europe, which could jeopardize or delay the anticipated economic recovery, as well as increased signs of rising inflation, investors will be eagerly watching the press conference at 14:30 (CET).
The focus continues also on the earnings season. Today, Credit Suisse is causing a stir, as the Swiss bank posted a net loss of CHF 252m in the first quarter. According to the bank, the collapse of the US hedge fund Archegos could also cause further losses in the second quarter. In the course of the day further important earnings will be published (see table below).
Canada's consumer prices rose by +2.2% on an annual basis in March, which means that the inflation rate has smoothly doubled compared to the previous month. This was due to rising energy prices (+19% year-on-year) on the one hand and statistical effects due to the low basis for comparison in the prior-year period, when the corona pandemic depressed consumer prices, on the other. However, the Canadian central bank left its key interest rate unchanged yesterday at +0.25% for the time being. At the same time, however, the Bank of Canada announced that it will scale back its QE program, i.e. asset purchases, by a quarter and held out the prospect of an interest rate hike earlier than previously expected. The background is a faster and stronger than anticipated economic recovery. In its quarterly economic forecast, the Canadian central bank now expects GDP growth of +6.5% in the current year, more than two percentage points higher than before.
China's leader Xi Jinping plans to accept US President Joe Biden's invitation to officially attend the climate summit taking place today. The US government is hoping for commitments from the Chinese on climate protection. Some 40 heads of state and government have been invited to the summit. Last year, China pledged to strive for carbon dioxide neutrality before 2060, or to stop emitting carbon dioxide or to completely offset its CO2 emissions.
|08:45||FR||Economic Sentiment (April)||98.0|
|13:45||EZ||ECB Monetary Policy Announcement|
|14:30||EZ||ECB Press Conference|
|14:30||US||Initial Jobless Claims (weekly)||576,000|
|14:30||US||Chicago Fed National Activity Index (March)||-1.09|
|16:00||EZ||Consumer Confidence (April)||-10.8|
|16:00||US||Existing Home Sales (March, m/m)||-6.6%|
|16:00||US||Leading Indicator (March)||+0.2%|
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, +41 44 250 78 59, E-Mail: email@example.com
Source: LGT Bank (Switzerland) Ltd.
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