Oct 19, 2018 8:41 AM | Daily Market News
LGT Navigator: Interest rates and Italy dominate market sentiment
Wall Street closed with losses, burdened by concerns about interest rates and growth, and Asian stock markets followed the negative trend. While the US corporate reporting season is in focus, latest US economic data confirmed the strong state of the US economy and fed concerns about rapidly rising interest rates with the Fed minutes published the previous evening. On Europe's stock markets, concerns about Italy's financial situation dampened sentiment on the floor yesterday.
The ECB's cautious bias toward an interest rate turnaround, despite the announcement to end its billion-dollar bond purchase program probably at the end of this year, weakened the euro significantly. The ECB maintained its key interest rate at a record low and remained extremely cautious in its communication. At the same time, the Bank of Japan also left its key interest rates unchanged and even lowered its inflation expectations.