May 24, 2018
LGT Navigator: Renewed sentiment damper
The latest results of the purchasing manager surveys conducted by the London-based research institute IHS Markit signaled a renewed deterioration in corporate sentiment in the euro zone. In May the purchasing managers' index weakened the fourth month in a row to 54.1 points from 55.1, its lowest level since November 2016, and the euro then slipped to a new low for the year. With the renewed decline in the euro area the PMI is likely to fuel concerns about a slowdown in growth and could question the anticipated ECB monetary policy turnaround. According to Markit chief economist Chris Williamson, the underlying growth momentum has slowed compared to the end of last year.
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May 23, 2018
LGT Navigator: Waiting for more clarity
Although investors were initially relieved at the beginning of the week by the rapprochement between the USA and China in the trade dispute, a certain risk aversion dominated due to continuing geopolitical uncertainties (North Korea), which was also reflected on Wall Street and the Asian stock markets. Meanwhile, the Italian President's decision on the formation of the Italian government has yet to be taken.
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May 22, 2018
LGT Navigator: Italy's government is fueling fears in the EU
Giuseppe Conte has been nominated as the new Italian Prime Minister at the head of a coalition of the Five-Star Movement and the right-wing populist Lega Nord. The formation of the Italian government is causing great concern in Europe: both the Lega and the Stars had distanced themselves from the EU and were planning to move away from austerity and push through billion-dollar projects such as tax cuts.
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May 18, 2018
LGT Navigator: Investors eye interest rates, oil, euro, and Italy
Investors continue to focus primarily on yields on the US bond market, as the trend-setting ten-year US government bonds continue to yield over 3% and even more and short-term five-year Treasuries are now trading just below this level. In addition, oil price quotations continue to soar against the backdrop of concerns about a supply shortage due to US sanctions against the important output country Iran. Europe's stock markets were boosted by a weaker euro on the one hand, while the emerging government coalition in Italy of the populist 5-star movement and the extreme right-wing Lega could pose a challenge to the EU. The yield on ten-year Italian government bonds climbed to a three-month high and the Italian bank index fell by more than 2%.
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May 17, 2018
LGT Navigator: Caution in view of rising yields
Equity markets continued to be caught between rising interest rates - the yield on the ten-year US government bond now reached 3.1% - and geopolitical uncertainties at midweek. While US President Trump is insisting on a complete nuclear disarmament of North Korea, Kim Jong Un threatens to cancel the summit in Singapore in June. Against this backdrop, the WTI oil price is trading just below USD 72.
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