Jan 31, 2023
LGT Navigator: German economy shrinks ahead of ECB decision
Mixed economic data out of Europe is keeping investors and policymakers busy this week after Germany said its economy - the continent’s largest - contracted in the last quarter of 2022. Elsewhere in Europe, Irish GDP came in at a very strong growth of 3.5% quarter-on-quarter in the last quarter of the year and a leading Swiss indicator hinted things are getting less gloomy there as well. The IMF also raised its global economic growth forecast for the year. These mixed economic signals and more data to come this week, including French and euro area GDP on Tuesday, provide the backdrop for monetary policy decisions on Wednesday and Thursday from the Federal Reserve and European Central Bank.
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Jan 30, 2023
LGT Navigator: Markets prepare for major central bank decisions
Equity markets ended last week slightly higher following a series of economic data on Friday that show inflationary pressures easing in the US. The data should give policymakers at major central banks more leeway in their monetary policy decisions due later in the week. The Federal Reserve and European Central Bank announce interest rate decisions on Wednesday and Thursday, respectively. Both banks slowed the rate of interest rate increases at their previous policy meetings in December but have since been clear that they believe there is still much to do to tame inflation.
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Jan 27, 2023
LGT Navigator: Economic optimism and Tesla's quarterly figures provide a tailwind
Strong figures on economic growth in the US caused cautious optimism, but also increases the chance that the Federal Reserve could remain on a restrictive course for longer. The focus is now on the Fed's next interest rate decision next Wednesday. The stock markets were also boosted by a positively received quarterly report from the electric car manufacturer Tesla. Meanwhile, in Japan, a sharp rise in core inflation in the capital Tokyo caused a stir, putting pressure on the Bank of Japan to act soon.
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Jan 26, 2023
LGT Navigator: German economy starts the new year more confidently
After the latest reading of the Purchasing Managers' Survey signalled an improvement in the economic outlook for the eurozone, the Ifo barometer have also pointed to improved prospects for the German economy. The much-regarded business climate indicator rose at the beginning of the year for the fourth time in a row. On Wall Street, previous quarterly results, such as those from Microsoft, caused increased volatility.
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Jan 25, 2023
LGT Navigator: Quarterly reporting season does not yet provide a clear direction
The quarterly reports of some stock market heavyweights and a brief trading interruption for reasons that have not yet been clarified took centre stage on Wall Street yesterday. Software giant Microsoft earned significantly less in the final quarter of 2022, citing the negative effects of high inflation and recession worries. Latest purchasing managers' surveys showed a gloomier picture in the US and the UK, while the outlook for the euro area seems to be improving moderately.
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