Mar 27, 2020
LGT Navigator: Corona crisis affects US labor market – but equity markets are unfazed
The latest labour market data from the USA showed a dramatic increase in initial claims for unemployment benefits. More than three million Americans applied for assistance − an absolute record number. US Federal Reserve Chairman Powell once again stressed that the Fed would take an offensive approach to mitigate the crisis and assured that the central bank still had room for manoeuvre. Investors now seem to have confidence in monetary and fiscal policy measures of historic proportions, and Wall Street stock indices have begun to recover.
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Mar 26, 2020
LGT Navigator: Nervousness remains tangible
The agreement in Washington on trillions of dollars in financial aid and the promises made by central banks and governments of practically unlimited economic stimulus packages to stem the negative effects of the corona crisis on the global economy initially led to an impressive recovery on the international stock markets. However, due to the continuing high level of uncertainty about the extent and consequences of the pandemic, the nervousness of stock market players and investors remains noticeable. In Asia, the recovery rally has already dried up again and investors' risk aversion has again taken the upper hand, which has once more put the stock market indices, particularly in Tokyo, under strong pressure.
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Mar 25, 2020
LGT Navigator: Monetary and fiscal stimulus initiates historic relief rally
The US Federal Reserve seems to have successfully drawn a line in the sand and the agreement in the US Congress on a USD 2 trillion stimulus package caused a price fireworks display on the stock markets. On Wall Street, the Dow Jones Industrial index rose by more than 2 000 points (+11.4%), the strongest increase since 1933! The recovery on Asian stock exchanges is also continuing and the futures markets are signalling a positive opening in Europe.
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Mar 24, 2020
LGT Navigator: Fed goes all-in
The US Federal Reserve (Fed) is firing from all pipes and announced a securities purchase program of unlimited scope to support the economy and stabilize the financial system. The stock markets immediately reacted positively to the Fed's announcements. On Wall Street, however, investors were disappointed that the US Parliament was unable to reach an agreement on a promised trillion-dollar rescue package. In Asia, by contrast, stock indices rose sharply and futures markets signalled a positive opening on European exchanges.
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Mar 23, 2020
LGT Navigator: No relief
The manifold countermeasures of the central banks and the billions in aid promises of many governments do not seem to have really contained the nervousness of investors so far, or give stock markets a chance to bottom out. While European equities followed the positive trend from Asia on Friday, the New York stock indices closed deep in red again, and the picture in Asia is mixed today. For Europe's equity exchanges, the futures signal a negative start into the week.
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