Skip navigation Scroll to top
Scroll to top

LGT Navigator: Quarterly earnings provide positive impetus

October 20, 2021

Several stronger-than-expected company results, for example from the US pharmaceuticals group Johnson & Johnson, provided optimism on the New York Stock Exchange. A topic on the stock exchanges yesterday was also the launch of the first exchange-traded fund in the US, which tracks financial products on Bitcoin (ETF). The so-called “Beige Book”, the regular economic report of the US Federal Reserve, is now eagerly awaited this evening.

Quarterly earnings provide positive impetus

Solid quarterly figures from Johnson & Johnson or the insurer The Travelers provided price gains on Wall Street yesterday. The Dow Jones Industrial went out with a daily performance of +0.56% at 35,457.31 points and thus holds near the record high of mid-August. The S&P 500 gained even more strongly by +0.74% to 4,519.63 points and daily gains of the same magnitude were observed on the Nasdaq.

In Asia, the friendly tone on the stock markets continued Wednesday. At the same time, yields on long-term US Treasury bonds climbed to a five-month high, while the yen fell to a four-year low against the US dollar.

Stock market debut for bitcoin ETF

Cryptocurrencies have cleared another major hurdle in establishing themselves as an investment for a broad audience. The first bitcoin futures ETF started trading on the New York Stock Exchange on Tuesday. The ETF of the provider ProShare tracks the development of bitcoin futures on the US futures exchange CME, so investors speculate on the future price development of the digital currency. The first applications for approval of Bitcoin ETFs were submitted years ago but were stopped by the U.S. Securities and Exchange Commission (SEC) due to concerns about insufficient investor protection. Now that the premiere has succeeded, the offering is likely to expand soon, as the SEC is currently reviewing numerous other applications to approve bitcoin futures ETFs.

Bleak outlook for US construction industry

Construction activity in the United States surprisingly contracted in September. Thus, housing starts fell by -1.6% compared to the previous month, as reported by the Commerce Department on Tuesday in Washington. Analysts had expected no change. In addition, housing starts in August increased much less than previously expected and grew only +1.2% instead of +3.9%. The number of building permits, which provide an indication of future construction activity, also fell by -7.7% month-on-month. Market observers had expected a -2.4% decline after more building applications were filed in August.

IMF revises growth forecast for Asia

The Asian economy is likely to recover from the consequences of the corona pandemic at a much slower pace this year than expected in April. This is the conclusion of the International Monetary Fund (IMF), which has revised its economic forecast for the Asia-Pacific region downward and still expects growth of +6.5% in 2021. This is 1.1 percentage points less than estimated in the spring. For 2022, the IMF forecasts a plus of 5.7% (previously: +5.3%) and for 2023 the estimate remains unchanged at +5%.According to the IMF, the upswing is being held back by the effects of the pandemic, with low vaccination rates and high infection rates causing ongoing problems. Although the region has the highest growth rate in a global comparison, the differences between the individual economies are large and have recently become more pronounced. This is mainly because the availability of corona vaccines and the financial capacity of governments to mitigate the crisis vary widely.

 

Economic Indicators October 20

MEZ Country Indicator Last period
08:00 UK Consumer Prices (September, y/y) +3.2%
08:00 UK Core Consumer Prices (September, y/y) +3.1%
08:00 UK Producer Prices (September, y/y) +5.9%
08:00 GE Producer Prices (September, y/y) +12.0%
09:00 AUT Consumer Prices (September, y/y) +3.2%
11:00 EZ Consumer Prices (September, y/y) +3.4%
11:00 EZ Core Consumer Prices (September, y/y) +1.9%
20:00 US Fed Beige Book

 

Earnings Calender October 20

Country Company Period
SZ Roche Q3 Sales
SZ Nestlé Q3 Sales
SZ Kuehne & Nagel Q3 
SZ Givaudan Investor Day
NL ASML Q3
NL Akzo Nobel Q3
SWE Svenska Handelsbanken Q3
SWE Skandi Banken Q3
USA IBM Q3
USA Tesla Q3
USA Verizon Communications Q3
USA Abbott Laboratories Q3
USA Nasdaq Q3

 

LGT helps you make informed investment decisions

All about global economic and market trends at a glance

Subscribe to LGT's research newsletters

You can also follow us on Facebook or LinkedIn – or visit MAG/NET and discover interesting background articles. If you have questions, a consultant from the bank will be happy to help you.

Imprint
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, +41 44 250 78 59, E-Mail: lgt.navigator@lgt.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.