On the New York stock exchange, the geopolitical uncertainties and the imminent interest rate turnaround of the Federal Reserve caused losses. The Dow Jones Industrial lost almost half a percent and closed at 34'566.17 points. The S&P 500 lost -0.38% and closed at 4'401.67 points. On the technology exchange Nasdaq, however, the indices could hold just above the closing prices of last Friday.
Regarding the expected interest rate turnaround of the Federal Reserve, capital markets are waiting for new clues in the minutes of the last interest rate decision in January, which will be published tomorrow evening. The bond markets are now pricing in more than six interest rate hikes in the US within a year. This means that the US key interest rate could be above +1.5% in January 2023. Meanwhile, the yield on ten-year US government bonds is currently stuck at just under two percent.
In Asia, most stock indices followed the negative guidance from overseas. In Tokyo, the Nikkei 225 traded around -0.8% lower than the previous day. Chinese shares were able to partially gain after China's central bank provided more liquidity to support economic growth.
US Secretary of State Antony Blinken reiterated concerns that Russia could launch military action against Ukraine in the next few days. “Everything we see in terms of the deployment of Russian forces around Ukraine, on all sides of Ukraine, leads us to that conclusion,” Blinken said.
According to Russian Foreign Minister Sergei Lavrov, there is still a chance for negotiations. At the same time, however, he stressed that Russia would stick to the security guarantees it had demanded - in other words, a guaranteed renunciation by Ukraine of NATO membership. NATO has so far insisted that every country has the right to choose its alliance freely.
The finance ministers of the G7 nations – the United States, Britain, Germany, France, Italy, Japan, and Canada – said they would provide Ukraine with further financial and economic aid. The seven nations, currently chaired by Germany, also reiterated that further military aggression by Russia against Ukraine would be met with a swift, coordinated, and forceful response in the form of economic and financial sanctions. This would have massive and immediate consequences for Russia's economy.
|08:00||GE||Wholesale Prices (January, y/y)||+16.1%|
|08:00||UK||Unemployment Rate (December)||4.1%|
|09:00||ESP||Consumer Prices (January, y/y)||+6.1%|
|09:30||NL||GDP Q4 (q/q)||+2.1%|
|11:00||GE||ZEW Economic Expectations (February)||+51.7|
|11:00||EZ||ZEW Economic Expectiations (February)||+49.4|
|11:00||EZ||GDP Q4 (q/q)||+0.3%|
|14:30||US||Producer Prices (January, y/y)||+9.7%|
|14:30||US||Core Producer Prices (January, y/y)||+8.3%|
|14:30||US||NY Fed Empire State Manufacturing (February)||-0.70|
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Tina Haldner, 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.