Aug 20, 2018 8:51 AM | Daily Market News
LGT Navigator: Trade, Turkey & central banks in focus
Trumps trade poker and the Turkish crisis, respectively the risk of contagion, continue to keep the stock markets firmly under control and cause nervousness. From an economic point of view, however, the picture remains relatively solid, as the US early indicator, for example, signaled a continued solid growth trend in the US economy with a more than expected +0.6% increase in July. The bitter pill: At the same time, consumer confidence in the USA deteriorated surprisingly sharply in August.
The ECB's cautious bias toward an interest rate turnaround, despite the announcement to end its billion-dollar bond purchase program probably at the end of this year, weakened the euro significantly. The ECB maintained its key interest rate at a record low and remained extremely cautious in its communication. At the same time, the Bank of Japan also left its key interest rates unchanged and even lowered its inflation expectations.