In October more new jobs were created in the US economy than economists had expected. Employment rose by +128.000 jobs compared with the previous month, more than the consensus forecast of +85.000 had predicted. In addition, a revised +180.000 new jobs were created in the previous month, significantly more than originally estimated at +136.000. The unemployment rate determined in a separate study climbed from 3.5% – the lowest level in 50 years – to 3.6%. A further positive sign was provided by the highly regarded ISM Purchasing Managers' Index for the industrial sector. At 48.3 points, the barometer remains clearly below the 50 threshold, which signals growth in the sector, but the PMI improved at least from the ten-year low of 47.8 points recorded in the previous month. US Federal Reserve Chairman Jerome Powell is likely to feel strengthened by the still solid US labor market data in the interest rate pause announced last week.
US President Donald Trump once again attacked Federal Reserve Chairman Powell and accused the Fed of putting the US at a disadvantage in competition with other major economic powers. "We should have lower interest rates than Germany, Japan and everyone else," Trump twittered. "China is not the problem, it is the Fed". Trump had already repeatedly called for more drastic rate cuts in order to drive the domestic economy. Only last week the Fed lowered its key rate for the third time in a row to a range of 1.5% to 1.75%.
Larry Kudlow, chief economic advisor to US President Trump, sees a good chance of a settlement in the trade dispute with China. The talks are going "very optimistically". The parties to the conflict were almost unanimous on the issue of agricultural products and progress had been made on the financial services and currencies dossiers. The negotiations also went well in the intellectual property dispute, but there was still no consensus, Kudlow confirmed.
After most American stock market heavyweights have published their quarterly reports, the corporate reporting season in Europe is picking up speed this week. For example, with quarterly results from Adecco and Oerlikon on Tuesday, Adidas and BMW on Wednesday, Siemens and Deutsche Telekom on Thursday and Richemont and Allianz on Friday. Another highlight is the news about the anticipated stock market debut of the Saudi-Arabian state-owned oil company Saudi Aramco. The IPO is scheduled to take place in December. The valuation is expected to be between USD 1.6 trillion and USD 2.3 trillion.
Swiss National Bank (SNB) President Thomas Jordan said that the central bank, with its negative interest rates, must ensure that the interest rate differential with the rest of the world does not erode too much against the background of the easing of monetary policy by the ECB and the Fed's interest rate cuts. A further narrowing of the interest rate differential would increase the upward pressure on the franc and weaken economic growth, Jordan commented. Should the ECB further tighten its easing course, the SNB would also come under pressure to push the key interest rate level (currently minus 0.75%) further into negative territory. At any rate, an end to the negative interest rates is not foreseeable for the SNB at the moment, Jordan stressed. The SNB's next regular monetary policy decision is scheduled for 12 December.
Alphabet, the parent company of Google, acquires the manufacturer of Smartwatch Fitbit for USD 2.1bn. Google pays USD 7.35 per Fitbit share, representing a premium of 71% to the closing price on October 28. With Google's resources and platform, Fitbit will be able to innovate quickly, said Fitbit co-founder and CEO James Park.
|10:30||EZ||Sentix Investor Sentiment||-16.75|
|16:00||US||Factory Ordres (m/m)||-0.1%|
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, +41 44 250 78 59, E-Mail: firstname.lastname@example.org
Source: LGT Bank (Switzerland) Ltd.
Risk Disclosure (Disclaimer)
This publication is an advertising material / marketing communication. This publication is for your information only and is not intended as an offer, solicitation of an offer, or public advertisement to buy or sell any investment or other specific product. Its content has been prepared by our staff and is based on sources of information we consider to be reliable. However, we cannot provide any confirmation or guarantee as to its being correct, complete and up to date. The circumstances and principles to which the information contained in this publication relates may change at any time. Information that has been published should therefore not be understood as implying that no change has taken place since its publication or that it is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax-related or other consulting matters, nor should any investment decisions or other decisions be made on the basis of this information alone. It is recommended that advice be obtained from a qualified expert. Investors should be aware that the value of investments can fall as well as rise. Positive performance in the past is therefore no guarantee of positive performance in the future. Investments in foreign currencies are also subject to fluctuations in exchange rates. We disclaim all liability for any loss or damage of any kind, whether direct, indirect or consequential, which may be incurred through the use of this publication. This publication is not intended for persons subject to legislation that prohibits its distribution or makes its distribution contingent upon an approval. Any person coming into possession of this publication shall therefore be obliged to find out about any restrictions that may apply and to comply with them. In line with internal guidelines, persons responsible for compiling this report are free to buy hold and sell the securities referred to in this report.