Skip navigation Scroll to top
Scroll to top

LGT Navigator: Lurking risks and mixed US economic signals

May 16, 2019

An impending further escalation of the trade conflict, geopolitical tensions in the Gulf region and interspersed US economic data caused stock inves-tors to hold back. Meanwhile, US retail sales disappointed in April with an unexpected drop of -0.2% from the previous month (consensus +0.2%). Americans, for example, spent less money on cars, electronics and building materials.

The minutes of the US Federal Reserve's last monetary policy decision on March 20 confirmed the Fed's wait-and-see attitude. There are still "significant uncertainties" in the economic outlook, and latest US inflation data will probably not put pressure on the Fed to raise key interest rates again in the near future. ECB President Mario Draghi continues to see growth risks for the euro zone and recent economic data have confirmed that the pace of growth in the euro area is slowing. Nevertheless, the likelihood of a recession remains low.

Download LGT Navigator

More daily market views you can find in the latest PDF version of LGT Navigator: Download LGT market information