Jun 18, 2021
LGT Navigator: Markets digest central bank decisions
As expected, the Swiss National Bank and the Bank of Japan are sticking to their current course and are unlikely to have any leeway for monetary policy maneuvers for some time to come. The Federal Reserve, on the other hand, is now at least considering the question of when the time might have come to envisage a reduction in the massive stimulus measures. This is now likely to be priced into the financial markets, with the currently still expansive monetary policy of the major central banks giving a boost to technology stocks and the Nasdaq subsequently setting new records.
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Jun 17, 2021
LGT Navigator: Fed thinks a bit louder about interest rate turnaround
The Fed is continuing its expansionary monetary policy for the time being but is apparently thinking more strongly about a turnaround that is foreseeable in 2023. According to statements by Fed Chairman Powell, the corresponding debate on reducing the massive stimulus measures has begun. For the time being, however, the key interest rate in the US remains at a record low to lead the US economy out of the corona crisis in the long term. On Wall Street, the prospect of an interest rate turnaround by the Fed was naturally received rather negatively.
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Jun 16, 2021
Tactical asset allocation for Q3/2021
Owing to their timely and generous macroeconomic policies and comparatively fast inoculation drives, most major economies are now reaping extraordinary cyclical upswings. At the same time, this bright outlook is now widely acknowledged, while inflation has appeared as potential spoilsport. We trim our risk exposure somewhat to account for this more nuanced situation.
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Jun 16, 2021
LGT Navigator: All eyes on the Fed
Once again, when the Federal Reserve announces its decision on the direction of monetary policy, the capital markets will be at their most tense. In the current environment of an economic recovery after last year's corona-related ad-extremis slump and the resulting inflationary risks, the Fed must strike the right balance. Although no immediate monetary policy adjustment is expected today, central bank Chairman Powell's testimony and the Fed's new economic forecasts will be the focus of investor interest.
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Jun 15, 2021
LGT Navigator: Standstill ahead of central bank decisions
In the run-up to the interest rate decisions of the Fed, the SNB and the Bank of Japan, investor restraint on the capital markets is noticeable. Increased inflation expectations and the prospect of a further recovery of the global economy from the corona crisis could persuade central banks to make an earlier turnaround on interest rates. On Wall Street, standard stocks moved sideways, but the Nasdaq technology exchange managed a new record high. In Asia, the indices trended inconsistently, and Europe's stock markets are also likely to be more or less at a standstill until the Fed decision on Wednesday.
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