On Tuesday, the gold price for the first time ever exceeded the USD 2000 an ounce mark. Since the beginning of the year, the precious metal has gained more than 30% in value, making it one of the best-performing assets. In a market environment characterized by ultra-low interest rates, enormous liquidity injections from central banks and governments, as well as uncertainty about the impact of the corona pandemic, investors are seeking protection in gold. In July, for instance, USD 7.4bn net flowed into ETFs backed by physical gold, reports the industry association World Gold Council. This is after a record USD 40bn was invested in these products in the first half of the year.
The rally on US stock markets continued on Tuesday, although momentum eased somewhat compared to the previous day. Good economic data provided support: American industrial companies received more orders in June than expected. As a result, the technology indices again recorded new highs and the Nasdaq 100 advanced 0.38% to 11096.54 points. The Asian stock markets are showing a mixed picture today. The Shanghai Composite and the Hang Seng Index are slightly up, while the Nikkei in Tokyo loses -0.4%.
Shortly before the deadline expired on 4 August, Argentina agreed with its creditors on a restructuring of the public debt. This involves government bonds with a volume of USD 65bn, whose interest payments were already suspended in May. The Argentine government then asked the creditors to waive part of the claims – since then, the parties have been negotiating a debt restructuring. Argentina's economy was already in recession before the corona crisis, and in recent months, the pandemic has exacerbated the economic misery. With the agreement, Argentina's government has averted another national bankruptcy, which would have been the ninth in the history of the third largest Latin American economy. Now debtors and creditors have until the end of August to determine the details of the restructuring.
The number of job openings in Germany has been significantly reduced in the wake of the corona crisis. Almost half a million fewer jobs were to be filled in the second quarter than in the prior-year quarter. This corresponds to a decline of 36%. One of the reasons for this is the introduction of short-time working, which numerous companies are using to safeguard jobs. A hiring freeze applies during this phase. In the same period, unemployment has risen, so the ratio of job seekers to vacancies has almost doubled, compared to the same quarter of the previous year (3.1 vs. 1.6)
In Spain, unemployment fell in July for the first time since February. In comparison with the previous month, the unemployment rate fell by 2.3%. Nevertheless, there are still nearly 3.8 million people looking for work, over 760000 more than in July 2019. According to the Statistics Office, the employment situation has improved in all sectors except for agriculture, after the government lifted the lockdown.
|03:45||CN||Caixin Purchasing Managers' Index Services (July)||58.4|
|10:00||CH||Kof economic survey (July)|
|11:00||EZ||Purchasing Managers' Index Services (July)||55.1|
|14:30||US||Trade balance||USD -54.6 bn|
|16:00||US||ISM Purchasing Managers' Index Services (July)||57.1|
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, +41 44 250 83 48, E-Mail: email@example.com
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.