Morning Minutes 4/6/2020

Morning Minutes

Shortened Trading Week Starts With Stocks Rallying and Oil Sinking

April 6, 2020

At SIA Wealth Management everything we do is based on Relative Strength Analysis. We evaluate the Relative Strength between asset classes giving us insight into money flows on a large scale, and from this select top ranked investments.

Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
ccieszynski@siawm.com
+1 (647) 282-4428

Stock markets around the world are up strongly to start the new trading week, boosted by reports of slowing COVID-19 case count and mortality growth in Europe, particularly Italy and Spain.  Frankfurt is up 4.5%, and Milan is up 2.9%, while London (where PM Johnson has been admitted to hospital) is up 1.9%. Asia Pacific markets also rallied overnight with Tokyo gaining 4.2%, Sydney soaring 4.3%, Seoul surging 3.8% and Hong Kong climbing 2.2%.

Crude Oil is down this morning with WTI falling 3.7% and Brent falling 3.1% after the OPEC + video conference on potential steep production cuts was postponed. Reportedly the two sides are close to a deal and the meeting could still be held later this week. On the interim, oil remains volatile as this morning’s levels are back up from overnight declines near 9%.

Positive sentiment appears to be carrying through to North America as well. US index futures are all up about 3.5% this morning. Dow futures are up about 725 points, clawing back all of Friday’s 360-point loss and adding more gains. Meanwhile signs of fear continue to ease. US bond prices are holding steady and the VIX volatility index continues to trend back downward. The US Dollar is also backsliding today, falling 1.6% against gold, 0.4% against the Loonie and 0.2% against the Pound. The defensive Japanese Yen also continues to weaken.

It’s a short trading week with markets around the world closed on Friday. In addition to a potential OPEC + meeting on oil, other potentially significant events include a Eurogroup finance ministers meeting where common coronavirus bonds could potentially be discussed. Earnings season doesn’t start in earnest until next week, but we may continue to see profit warnings this week. Two reports that could provide more insight into the impact of COVID-19 on travel include Carnival (Cruise Lines) on Tuesday plus Delta Air Lines on Wednesday.

SIA Wealth Update Webinar With Jeremy Fehr, Wednesday April 8, 2:00 pm EDT

Join Jeremy Fehr, Ted Bader and Paul Vendrinsky of SIA Wealth Management for an update on the current market and how that relates to SIA Wealth Management portfolios. Webinar audio will be available through computer VoIP or dial in using your phone.

Click Here To Register

Disclaimer: SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIAWM nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.