Skip navigation Scroll to top
Scroll to top

LGT Navigator: Markets up despite expecting continued monetary tightening

November 23, 2022

Stock markets were trading up Wednesday after a strong close in the US on Tuesday. The jump comes even as markets have received a slew of signals that central banks may raise interest rates longer and faster than many investors had expected. Wednesday could be a busy trading day as the week is cut short in the US due to the long Thanksgiving weekend beginning Thursday. Impulses are likely to come from Purchasing Managers’ Indexes from several G7 countries, US consumer sentiment and the Federal Open Market Committee meeting minutes.

Markets up despite expecting continued monetary tightening

In New York, stock markets made strong gains Tuesday. The Dow Jones Industrial ended the day +1.18% at 34,098.10 points. The S&P 500 gained +1.36% to finish at 4,003.58 points. Indices on the Nasdaq were up roughly +1.5%.

In Asia, equity markets were mixed. Hong Kong’s Hang Seng gained +0.57%. The Shanghai Composite lost -0.19% and the Shenzhen Component declined -1.22%. There was no trading in Tokyo due to a holiday in Japan.

Decelerating global growth to hit Europe hardest

Europe is likely to be hit harder than other parts of the world as global economic growth slows next year, according to the Organisation for Economic Cooperation and Development (OECD). The group sees global economic growth slowing to +2.2% next year from +3.1% this year. In particular, the war in Ukraine and high energy prices are weighing on Europe’s economic growth. However, the OECD forecasts the eurozone will still likely dodge a recession with +0.5% growth next year. The bloc’s largest economy, Germany, is nevertheless expected to contract by -0.3% in 2023.

New Zealand raises interest rates by record amount

Investors watching more than just the US Federal Reserve and European Central Bank for clues as to where global monetary policy is headed received a clear signal from New Zealand’s central bank on Wednesday. The Reserve Bank of New Zealand raised the official cash rate to 4.25%, a hike of 75 basis points, which is the fastest pace in the institution’s history. The bank also predicted a recession in the country beginning in the second quarter of 2023, which will likely last until early 2024.


Economic Indicators November 23

CET Country Indicator Last period
09:15 FR Composite Purchasing Managers' Index (November) 50.2
09:30 GE Composite Purchasing Managers' Index (November) 45.1
10:00 EZ Composite Purchasing Managers' Index (November) 47.3
10:30 UK Composite Purchasing Managers' Index (November) 48.2
14:00 US Building permits (November) +1.4%
14:30 US Initial jobless claims (weekly) 222,000
15:45 US Composite Purchasing Managers' Index (November) 48.2
16:00 US Consumer sentiment (November) 52.7
16:00 US New home sales (October) -10.9%
20:00 US FOMC minutes

Earnings Calender November 23

Country Company Period
CH Credit Suisse (extraordinary general meeting)
US Deere & Co Q4


LGT helps you make informed investment decisions

All about global economic and market trends at a glance

Subscribe to LGT's research newsletters

You can also follow us on Facebook or LinkedIn – or visit MAG/NET and discover interesting background articles. If you have questions, a consultant from the bank will be happy to help you.


Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, E-Mail:
Source: LGT Bank (Switzerland) Ltd.


Risk Disclosure (Disclaimer)
This publication is an advertising material / marketing communication. This publication is intended only for your information purposes. It is not intended as an offer, solicitation of an offer, or public advertisement or recommendation to buy or sell any investment or other specific product. The publication addresses solely the recipient and may not be multiplied or published to third parties in electronic or any other form. The content of this publication has been developed by the staff of LGT and is based on sources of information we consider to be reliable. However, we cannot provide any confirmation or guarantee as to its correctness, completeness and up-to-date nature. The circumstances and principles to which the information contained in this publication relates may change at any time. Once published information is therefore not to be interpreted in a manner implying that since its publication no changes have taken place or that the information is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax or other matters of consultation, nor should any investment decisions or other decisions be made solely on the basis of this information. Advice from a qualified expert is recommended. Investors should be aware of the fact that the value of investments can decrease as well as increase. Therefore, a positive performance in the past is no reliable indicator of a positive performance in the future. The risk of exchange rate and foreign currency losses due to an unfavorable exchange rate development for the investor cannot be excluded. There is a risk that investors will not receive back the full amount they originally invested. Forecasts are not a reliable indicator of future performance. In the case of simulations the figures refer to simulated past performance and that past performance is not a reliable indicator of future performance.

The commissions and costs charged on the issue and redemption of units are charged individually to the investor and are therefore not reflected in the performance shown. We disclaim, without limitation, all liability for any losses or damages of any kind, whether direct, indirect or consequential nature that may be incurred through the use of this publication. This publication is not intended for persons subject to a legislation that prohibits its distribution or makes its distribution contingent upon an approval. Persons in whose possession this publication comes, as well as potential investors, must inform themselves in their home country, country of residence or country of domicile about the legal requirements and any tax consequences, foreign currency restrictions or controls and other aspects relevant to the decision to tender, acquire, hold, exchange, redeem or otherwise act in respect of such investments, obtain appropriate advice and comply with any restrictions. In line with internal guidelines, persons responsible for compiling this publication are free to buy, hold and sell the securities referred to in this publication. For any financial instruments mentioned, we will be happy to provide you with additional documents at any time and free of charge, such as a key information document pursuant to Art. 58 et seq. of the Financial Services Act, a prospectus pursuant to Art. 35 et seq. of the Financial Services Act or an equivalent foreign product information sheet, e.g. a basic information sheet pursuant to Regulation EU 1286/2014 for packaged investment products for retail investors and insurance investment products (PRIIPS KID).