Oct 12, 2018 8:49 AM | Daily Market News
LGT Navigator: Recovery attempt after Wall Street sellout
Rising interest rates and fears of a global economic slowdown due to an escalation of the trade war shook stock markets worldwide. After the sell-off on Wall Street, European stock indices stabilized again yesterday, and Asian stock markets have also managed to contain their losses this morning. Later in the day, JPMorgan, Citigroup and Wells Fargo will ring in the US reporting season.
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.