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LGT Navigator: Investors take some chips off the table

January 12, 2021

After the start to the year was marked by new records on Wall Street, the political events in the US, and the continuing spread of the corona pandemic, investors were more cautious at the beginning of this week. Meanwhile, a new impeachment trial against US President Trump is being sought in Washington just days before the transfer of power. As a result, profit-taking prevailed on most stock exchanges at the beginning of the week. At the center of the attention remain the concerns around the pandemic and the upcoming corporate reporting season for the final quarter of 2020.

Investors take some chips off the table

Following record highs on Wall Street last week, investors realized some of the gains on Monday and US stock indexes fell for the first time in five sessions. The Dow Jones Industrial closed -0.29% lower at 31'008.69 points and the market-wide S&P 500 exited the day's trading -0.66% at 3'799.61 points. The Nasdaq Composite saw the most significant declines, down -1.3% at 13'036.43. Shares of Twitter (-6.4%) also came under pressure after the social media platform permanently blocked US President Trump, as a result of last week's events. In Asia, profit-taking also dominated this morning, while US Treasury yields reached their highest level since March and the US dollar continued to strengthen.

Democrats launch second impeachment trial against Trump

US President Trump, who is still in office until January 20, is facing impeachment proceedings again. Following the violent storming of the parliament by Trump supporters and the preceding verbal incitement of the president, the Democrats, led by House Speaker Nancy Pelosi, passed a resolution to this effect. The key point: “Incitement of insurrection.“ The Democratic-controlled House of Representatives can decide to open impeachment proceedings with a simple majority. But an effective impeachment of Trump also requires a two-thirds majority in the Senate, and this is not currently foreseeable. Furthermore, Vice President Mike Pence is to be formally called upon, based on the 25th Amendment of the US Constitution, to impeach President Trump. According to Pelosi, the president is “an imminent threat to national security, democracy and the Constitution.“

Sentix survey sees improved economic expectations thanks to vaccination launch

The start of global vaccination campaigns against Covid-19 has had a positive impact on investor sentiment in the eurozone. This is the conclusion of survey data published yesterday by Sentix, a German financial market analysis firm. The economic indicator rose by four points in January to plus 1.3 points (consensus +1.9) and reached the highest value since February 2020 after the second increase, i.e. before the corona crisis led to a drastic slump in the global economy. The more optimistic assessment of economic expectations by the nearly 1'200 analysts and professional investors surveyed was based primarily on the hope that an end to the crisis was in sight as a result of the vaccinations, Sentix commented.



Economic Indicators January 12

MEZ Country Indicator Last
16:00 US National Federation of Independent Business (NFIB) Small Business Optimism (December) 104.0

Earnings Calendar January 15

Country Corporate Period
US JPMorgan Chase Q4
US Citigroup  Q4
US Goldman Sachs Q4
US Alcoa


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