US stock markets ended the past trading week clearly in the red. On Friday, the S&P 500 lost -1.3%. The Dow Jones recorded a loss for the fifth day in a row and closed -1.6% lower at its lowest level since the beginning of April. The Nasdaq 100 technology index declined -0.8% after setting another record just above 14’200 points the previous day.
Among other things, statements by James Bullard, President of the Federal Reserve Bank of St. Louis, caused a subdued mood. He spoke out in favour of raising key interest rates as early as 2022, which would be significantly earlier than the Federal Reserve had envisaged last week. In addition, the big expiration day of options on indices and individual stocks on Friday caused price fluctuations.
The outlook for the new trading week remains gloomy. The Asian stock exchanges started Monday in deep red. In Tokyo, the Nikkei lost around -3.5% and in Hong Kong the Hang Seng lost -1.5%. The Shanghai Composite is -0.1% weaker after the Chinese central bank left key interest rates unchanged as expected.
The downtrend is also likely to continue on Wall Street: Futures on the major indices signal further losses on Monday.
European commercial banks are to continue to benefit from exemption rules to come through the corona crisis unscathed. Thus, the European Central Bank (ECB) has decided to continue the more generous calculation of the leverage ratio introduced last year for another nine months. The exemption rule was originally intended to last until the end of June. With the extension, banks will be able to make certain adjustments in the calculation of the leverage ratio in the coming months to achieve a better quota.
In Great Britain, retail sales surprisingly fell in May. Compared to the previous month, -1.4% less sales were recorded, while analysts had expected a plus of +1.5%. The food sector in particular saw sales drop by -5.7%. On an annual basis, of course, the picture looks different due to the base effect of the corona crisis. Compared to the same period last year, British retail sales rose by almost +25%.
According to the Confederation of British Industries (CBI), the consumer behaviour of the British will be decisive in determining how quickly the gross domestic product (GDP) will return to its pre-crisis level. It predicts that the economy could recover from the setback as early as the end of 2021. Accordingly, economists expect GDP growth of +8.2% in the current year, followed by +6.1% next year. The pivotal point, however, is consumer behaviour.
|14:30||US||Fed Chicago National Activity Index (May>)||+0.24|
|US||Johnson & Johnson||ESG Investor Update|
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.