Wall Street closed at new highs on Thursday after positive economic data were published during the day. The S&P 500 climbed +1.1% to 3'871.74 points and the Nasdaq Composite advanced +1.2% to 13'777.74 points. The Dow Jones Industrial rose +1.1% to 31'055.86 points, just below the previous high. Corporate results also support the positive sentiment. On Wall Street, the earnings season is in full swing. Of the 500 S&P 500 companies, 184 have so far presented their results, with around 84% exceeding analysts' expectations.
Asian markets are also on the rise on Friday. In Tokyo, the Nikkei gains +1.5%, in Hong Kong, the Hang Seng is up +0.7% and the Shanghai Composite gains +0.4%.
In the US, the number of initial jobless claims has fallen. Thus, in the week ending January 30, 779'000 Americans filed for unemployment for the first time, according to the U.S. Department of Labor on Thursday. This is the third week in a row that the numbers have fallen, analysts had expected an increase. The focus today will be on the labor market report, which will be released at 2:30 p.m. Swiss time. Market observers expect the economy to have created 50'000 new jobs in January, after losing 140'000 jobs in December. The unemployment rate is expected to remain unchanged at 6.7%.
The Bank of England confirmed its monetary policy course on Thursday. The key interest rate remains at 0.1% and bond purchases will continue, the British central bank announced. The BoE referred to the more uncertain economic situation, in which Great Britain finds itself since the outbreak of the corona pandemic. They also stated that they would continue to loosen monetary policy should the situation worsen.
The Swiss economy is likely to recover more slowly than expected in 2021. The Swiss Institute of Economic Research at ETH Zurich (KOF) has lowered its forecast for economic growth from 3.2% to 2.1%. The KOF points to the second lockdown, which is dampening economic activity as, for example, stores have to remain closed. But the emergence of various virus mutations and the slow start to the vaccination campaign are also likely to continue to weigh on the economy into the second quarter, the economists expect. The KOF forecasts that the Swiss economy will not return to pre-crisis levels until the end of 2021.
Consumer sentiment in Switzerland has also clouded over at the start of the year. The corresponding index, which is surveyed on a quarterly basis, stood at -14.6 points in January and was thus lower than in October (-12.8). Although the index has recovered from its record low during the corona crisis (-39.3 points in April), it is still well below the long-term average of -5 points. In particular, consumers are more pessimistic about the outlook for the economic development, the Seco reported on Thursday. In addition, concerns about job security as well as budget planning has increased, the Seco reported.
European retailers earned more in December than in the previous month, but the Christmas business was less successful than hoped. Thus, sales increased by +2%, after shrinking by -5.7% in November. Analysts had forecast an increase of +2.8%. The differences in the individual euro countries are quite significant. German retailers, for example, have earned almost -10% less as stores remained closed in the second half of December. By contrast, the retail sector in France achieved a sales increase of +22.3%.
|00:30||JP||Private spending (y/y, December)||+1.1%|
|08:00||GER||Order intake manufacturing||+2.3%|
|14:30||US||Non-farm payrolls (January)||-140'000|
|US||Estée Lauder Companies||Q3|
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, +41 44 250 78 59, 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.