On the New York Stock Exchange, the Dow Jones Industrial gained +0.7% on Monday and closed just below the daily high. The broad S&P 500 was also up, following the record highs reached last Thursday. The strongest gains were seen on the Nasdaq technology exchange, where indices rose more than one percent. Apple's shares reached a stock market value of more than three trillion US dollars for the first time.
In Asia, the picture today was mixed. While the stock indices in Tokyo joined the positive guidance from overseas, Hong Kong, for example, struggled after China's cybersecurity regulator announced tighter rules for overseas listings. Less attention was paid to positive economic news from China. For example, sentiment in Chinese industry brightened at the end of the year. This was signaled by the Purchasing Managers' Index (PMI) published this morning by the Chinese business magazine Caixin. The PMI improved in December from 49.9 points in November to 50.9 points, reaching the highest level in half a year.
In the US industrial sector, activity slowed in December compared with the previous month. The Purchasing Managers' Index of the London-based research institute IHS Markit slipped to 57.7 points from 58.3 points in November. According to IHS Markit, delivery delays and material bottlenecks continue to be responsible for the more pessimistic assessment of the companies surveyed. Sentiment in the industrial sector also remained clouded in the eurozone, given the ongoing disruption to global supply chains and heightened uncertainties caused by the omicron variant at the end of last year. This was signaled by the IHS Markit Purchasing Managers Index released yesterday. At 58.0 points, the PMI was down 0.4 points from the previous month.
In Turkey, consumer price inflation is getting more and more out of control. In December, for example, the inflation rate reached 36%, the highest level in around 20 years. Since mid-2021, the annual inflation rate has more than doubled and on a month-on-month basis, the cost of living increased by almost +14% at the end of last year. Inflation in Turkey is likely to remain “hot” in the coming months as well. This is also indicated, for example, by the massive increase in producer prices, which rose by almost +80% year-on-year in December. Contrary to this, the Turkish central bank had cut interest rates under political pressure, thus also exacerbating the collapse of the Turkish lira.
|08:00||GE||Retail Sales (November, m/m)||-0.3%|
|08:30||SZ||Consumer Prices (December, y/y)||+1.5%|
|08:45||IT||Consumer Prices (December, y/y)||+3.4%|
|09:55||GE||Unemplomyent Rate (December)||5.3%|
|10:30||UK||PMI Manufacturing (December)||58.1|
|16:00||US||ISM PMI Manufacturing (December)||61.1|
|US||Computer Technology Association (CES) Event in Las Vegas|
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.
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.