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Sep 28, 2022 7:00:00 AM | LGT Private Banking Europe House View

LGT Private Banking Europe House View – October 2022

In order to curb inflation, central banks are tightening the interest rate screw further and are accepting the risk of a recession. Due to the increased risk of a global economic downturn, we classify high-yield as unattractive in our fixed-income strategy. Regarding stocks, the upcoming reporting season should provide information on how strong the decline in earnings will be in the coming quarters. At sector level, our preference remains for pharma and telecoms over technology and consumer cyclicals.

Sep 28, 2022 7:00:00 AM | LGT Navigator

LGT Navigator: Interest rate worries and higher yields keep stock markets under pressure

Surprisingly good economic data from the US and hawkish statements from Federal Reserve officials again fueled speculation regarding further rapid interest rate hikes. The interest rate worries drove yields on the bond markets up further and depressed share prices on Wall Street. Stock market jitters remain palpable amid a mix of alternating economic optimism and pessimism, inflation and interest rate worries.

Sep 27, 2022 7:00:00 AM | LGT Navigator

LGT Navigator: Rising yields and turbulence on the foreign exchange market

In addition to rising yields on the bond markets, a massive slump in the British pound caused turmoil on capital markets on Monday. Fears of a debt crisis on the island increased after the new government announced tax cuts, pushing the pound to a record low against the US dollar. According to media reports, the Bank of England could consider an extraordinary interest rate hike to support the pound. The euro also remains under pressure as the slide to the right in Italy raises the specter of a renewed euro crisis. 

Sep 26, 2022 7:00:00 AM | LGT Navigator

LGT Navigator: As expected, Italian voters turn right

According to the latest projections, the far-right "Fratelli d'Italia" party led by Giorgia Meloni is likely to win a majority of votes in Italy, as expected in advance. The political slide to the right could also shake the European Union and cause political and economic instability. On the stock markets, the latest economic data already caused heavy losses on Friday.

Sep 23, 2022 7:00:00 AM | LGT Navigator

LGT Navigator: Central banks are stepping up the fight against inflation

After the Federal Reserve's recent sharp interest rate hike, the central banks of the UK, Switzerland and Norway also followed suit with interest rate increases. The focus of all central banks is on fighting high inflation, even if this means accepting an economic slowdown or recession. On the stock markets, the tightening of financing conditions because of the interest rate hikes led to selling pressure. The mood on the trading floor was also dampened by the further escalation in the Ukraine war and the high volatility on the foreign exchange markets. On the bond market, the yield on ten-year US government bonds climbed to its highest level in eleven years. 

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