Jun 29, 2022 7:00:00 AM | LGT Navigator

Consumer confidence in the US and in Europe's two largest economies continued to deteriorate, also dampening sentiment on the stock markets. Recession fears and the monetary tightening course of the major central banks continue to determine events on the capital markets. Statements from the ECB's top management also held out the prospect of the central bank possibly initiating the turnaround in interest rates with a sharp rate hike and then accelerating the pace of monetary policy normalization if the inflation trend continues to worsen.

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

Rising yields on the bond market and better-than-expected data from US industry quickly dashed vague hopes of a slower rate hike by the Fed. On Wall Street, optimism about a more cautious rate hiking path by the Fed evaporated again. Meanwhile, the G7 summit is ending and the implementation and impact of the ambitious plans, such as the USD 600 trillion infrastructure project or adherence to the targeted climate goals, remains difficult to assess at present.

Jun 27, 2022 7:00:00 AM | LGT Private Banking Europe House View

The Federal Reserve will have to destroy demand momentum to get high inflation under control. But this also increases the risk of a recession. The credibility of central banks is crucial to mastering the interest rate turnaround and controlling tail risks. In emerging market equities, meanwhile, there are signs of an end to the downward trend and we upgrade the segment to "neutral". In the fixed income space, we continue to favor hybrid bonds.

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

On Wall Street, a more optimistic view of things ensured a solid end to the week. Against the backdrop of record low consumer sentiment in the US, the Federal Reserve could be somewhat more cautious in its course of interest rate hikes so as not to risk a recession, according to the assumption of many market participants. In principle, however, fears of recession are likely to remain a dominant factor in stock market sentiment and the recent recovery could well turn out to be a bear market rally. As expected, the G7 summit focused on the Ukraine war and the conflict with Russia. However, a USD 600 billion infrastructure project attracted attention. 

Jun 24, 2022 7:00:00 AM | LGT Navigator

Worse than expected business survey results intensified the already increased fears of recession on financial markets. The mood on the capital markets remains tense and the outlook for the global economy appears highly fragile due to continued strong inflationary pressures, the corresponding response of central banks, and ongoing problems in global supply chains as well as geopolitical uncertainties. At least in the short-term, however, investors seem to be able to free themselves somewhat from pessimism, leading to higher prices on stock markets and a falling yield on US government bonds.