After the losses in the previous week, the indices on Wall Street recovered at the beginning of the week and the Dow Jones Industrial gained +0.76% to 30'211.91 points. For the S&P 500, it went even more clearly uphill. The broad market index closed +1.61% higher at 3'773.86 points. In particular, tech stocks were in demand and so the technology exchange Nasdaq recorded the strongest daily gains with about +2.5%.
Meanwhile, the struggle for a new corona aid package continues in Washington. So far, however, US President Joe Biden and the Democrats have not yet been able to reach an agreement with the Republicans in the Senate. Over the weekend, ten Republican senators submitted an alternative proposal to Biden's intended stimulus package. This envisages aid of around USD 600bn – significantly less than the USD 1.9 trillion put forward by Biden.
In Asia, most indices this morning followed the positive guidance from overseas and also for Europe's stock exchanges, the futures indicate a friendly start to trading.
According to the latest survey data, industrial companies in the euro area were somewhat more cautious than at the end of last year. The Purchasing Managers' Index for eurozone industry fell by 0.4 points to 54.8 in January compared with the previous month, the London-based market research institute IHS Markit confirmed. While the industry remains on track for growth, it is at its lowest rate since the start of the recovery in light of corona restrictions and supply bottlenecks, commented Markit chief economist Chris Williamson. In the UK, sentiment among surveyed industrial firms dipped in January from a three-year high in December. As a result, the UK industrial barometer fell sharply by 3.4 points from the previous month to 54.1, but was still clearly stronger than an initial estimate of 52.9 points. Despite Brexit and the tense pandemic situation on the island, the industrial sector remains on a growth path with a PMI value clearly above 50 points.
In the US industrial sector, growth strengthened somewhat at the beginning of the year, according to the evaluations of IHS Markit. The corresponding PMI rose from 57.1 to 59.2 points. The US industry has shown an encouraging start to the year, said IHS Markit chief economist Williamson. The monthly business survey by ISM, the industry association of US purchasing managers, came to a different conclusion. According to the survey, US manufacturing activity was said to have slowed in January. The ISM manufacturing PMI fell from 60.7 to 58.7 points. Analysts had anticipated a decline to 60.0 points here.
The unemployment rate in the eurozone remained unchanged in December compared with the previous month at 8.3%. According to the statistics office Eurostat, the effects of the corona crisis on the eurozone labor market have so far been limited. During the euro debt crisis in 2009, for example, the unemployment rate had risen to as high as 12%. During the pandemic, the previous peak was reached in June last year at 8.7%. The negative effects of the corona measures on the economy and the labor market are being contained in particular by government support programs and short-time work. According to Eurostat, 13.67 million people in the eurozone were without permanent employment at the end of last year. In the EU as a whole, the figure was around 16 million.
|08:45||FR||Consumer Prices (January, y/y)||0.0%|
|10:00||IT||GDP Q4 (q/q)||+15.9%|
|11:00||EZ||GDP Q4 (q/q)||+12.7%|
|11:00||EZ||Core Consumer Prices (January, y/y)||+0.2%|
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, +41 44 250 78 59, E-Mail: firstname.lastname@example.org
Source: LGT Bank (Switzerland) Ltd.
Risk Disclosure (Disclaimer)
This publication is an advertising material / marketing communication. This publication is for your information only and is not intended as an offer, solicitation of an offer, or public advertisement to buy or sell any investment or other specific product. Its content has been prepared by our staff and is based on sources of information we consider to be reliable. However, we cannot provide any confirmation or guarantee as to its being correct, complete and up to date. The circumstances and principles to which the information contained in this publication relates may change at any time. Information that has been published should therefore not be understood as implying that no change has taken place since its publication or that it is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax-related or other consulting matters, nor should any investment decisions or other decisions be made on the basis of this information alone. It is recommended that advice be obtained from a qualified expert. Investors should be aware that the value of investments can fall as well as rise. Positive performance in the past is therefore no guarantee of positive performance in the future. Investments in foreign currencies are also subject to fluctuations in exchange rates. We disclaim all liability for any loss or damage of any kind, whether direct, indirect or consequential, which may be incurred through the use of this publication. This publication is not intended for persons subject to legislation that prohibits its distribution or makes its distribution contingent upon an approval. Any person coming into possession of this publication shall therefore be obliged to find out about any restrictions that may apply and to comply with them. In line with internal guidelines, persons responsible for compiling this report are free to buy hold and sell the securities referred to in this report.