On the New York Stock Exchange, investors were more optimistic than on the European and Asian stock markets. After the Dow Jones Industrial had still fallen on Tuesday to the lowest level in almost two months, the index gained +0.68% to 34'814.39 points by the closing bell. The rally was even stronger for the S&P 500, which rose +0.84% to 4'480.70 points. On the technology exchange Nasdaq it went up by about +0.8%. In particular, the New York Fed survey on sentiment in the local industrial sector was positively received. The Empire State index based on it increased more than expected by 16 to plus 34.3 points. Analysts had expected a decline to plus 17.9 points.
The Swiss running shoe manufacturer On Holding enjoyed a great start on the New York Stock Exchange. The shares rose sharply from the issue price of USD 24 and closed at USD 35, reaching a stock market value of more than USD 10 billion, significantly higher than expected.
In Asia, however, familiar risk factors such as supply chain bottlenecks and the spread of the coronavirus delta variant dominated sentiment. Thus, most of the stock indices in the Far East gave back their initial gains this morning and tended to close trading mostly in the red.
In a recent study, the Munich-based Ifo economic research institute predicts that consumer prices in Germany will rise more sharply next year than at any time since 1993. On average, inflation is expected to range between 2% and 2.5% in 2022. In the corona year 2020, the inflation rate was just +0.5% and in the last 30 years the average annual price increase has always been below 3%. The background to this is the base effects of the pandemic and the temporary reduction in VAT, as well as the rising prices for raw materials and intermediate products due to the ongoing material bottlenecks.
In the second-largest economy in the eurozone, consumer price inflation increased significantly in August, reaching +2.4%, the highest level since October 2018. The same picture was seen in Italy, where inflation picked up sharply last month. Year-on-year, the cost of living increased by +2.5%. In July, inflation had still only amounted to +1.0%.
In the United Kingdom, too, inflation rose sharply again in August. Year-on-year, consumer prices rose by +3.2% - the highest level since March 2012. In the previous month, the inflation rate had still been +2.0%. The increase of 120 basis points was also the largest since the start of the data series in 1997. On a month-on-month basis, consumer prices also rose strongly by +0.7%, also significantly by 0.7%. According to the ONS, price increases were partly due to a statistical base effect, driven by base effects and higher prices in the leisure and culture sector, as well as for food and beverages.
|09:00||SZ||SECO Economic Forecasts|
|11:00||EZ||Trade Balance (July)||EUR -18.1bn|
|14:00||EZ||ECB President Lagarde Speech|
|14:30||US||Retail Sales (August, m/m)||-1.1%|
|14:30||US||Initial Jobless Claims (weekly)||310,000|
|14:30||US||Philly Fed Manufacturing Index (September)||+33.7|
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Source: LGT Bank (Switzerland) Ltd.
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