The debate over the partial winding down of the massive stimulus measures was intense among US Federal Reserve officials on Monday. Two Fed officials stated their support for ending the USD 120bn in monthly bond purchases sooner rather than later. However, this agenda item appears to have only begun and should gain momentum in the near term. In a statement released on Monday, Fed Chairman Jerome Powell let it be known that the US economy continues to show “continued improvement”, further gains in the labor market are likely, and he sees inflation falling from current high levels. The chairman is keeping mum about scaling back his extensive use of exotic money market instruments. He is scheduled to address the US House of Representatives on Tuesday regarding the Corona crisis.
Cryptocurrencies such as Bitcoin also continued to fall at the start of the week, after already recording losses over the weekend. Experts pointed to the increasingly harsh course that the Chinese government is taking against digital currencies. For example, the Chinese central bank announced on Monday that domestic banks as well as fintech company Ant Group had been ordered to stop offering crypto trading services. According to the statement, the step is primarily intended to prevent speculation with digital currencies as well as criminal activities. The People's Republic is also taking rigorous action against producers of digital currencies, as numerous reports from various provinces showed last week. China has been developing its own digital currency, the digital yuan, for some time. Unlike private sector crypto assets, it will be subject to state control. Bitcoin fell to around USD 31,300 on Monday after reaching a high of almost USD 65,000 in April.
The Summer Olympics in Japan are not expected to take place in front of empty stands. The organizers will allow up to 10,000 local spectators at the competitions, and the stadiums may be filled to no more than half capacity. The condition, however, is that the infection situation does not worsen. The gates will remain closed to foreign visitors, as the organizing committee had already decided in March. With this decision, the organizers are turning against the advice of Shigeru Omi, Japan's top government advisor, who is in favor of ghost games. A large part of the Japanese population is also skeptical about the Summer Games in Tokyo and fears that the number of infections could rise again. Because of the pandemic, the major event has already been postponed by a year. The opening ceremony is now scheduled for July 23.
|16:00||US||Existing home sales (m/m, May)||-2.7%|
|20:00||US||Testimony of Fed Chair Jerome Powell|
|US||Johnson & Johnson||ESG Investor Update|
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: David Wolf, +41 44 250 83 48, E-Mail: email@example.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.