Morning Minutes 4/9/2020

Morning Minutes

Spotlight on Employment, OPEC/Russia and Powell In Pre-Weekend Trading

April 9, 2020

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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

World markets are mixed this morning amid a flurry of developments as the holiday weekend approaches. US index futures are hovering around flat after trading slightly negative overnight. Dow futures are up about 280 points or 1.2%, looking to build on yesterday’s constructive 779-point, 3.4% rally. S&P and NASDAQ futures are also up slightly. Overseas, Asia Pacific markets posted strong gains led by a 3.4% gain for Sydney and a 1.4% advance for Hong Kong. In Europe, London is up 1.0% while Frankfurt is up 0.6%.

North American employment numbers are out this morning. US weekly jobless claims increased by 6.60 million last week, more than the 5.25 million the street was expecting, but down slightly from last week’s 6.86 million. Continuing claims of 7.45 million were up from last week’s 3.05 million, but less than the 8.00 million street estimate. Canadian employment fell by 1.01 million jobs in March, worse than the 0.35 million the street had expected. The Canadian unemployment rate jumped to 7.8% from 5.6% and was higher than the 7.2% street estimate.

Fed Chair Jerome Powell speaks this morning. Ahead of his speech, the Fed has announced more details on $2.3 Trillion in monetary support programs including Main Street lending, payroll protection, and more.  Investors may look to his comments for hints on the Fed’s current thoughts on the economy, how deep the downturn could be, how long it could take to recover, and what additional tools the Fed could employ to support both the economy and financial markets.

Crude oil is up again this morning with WTI rallying 4.9% toward $26.25, and Brent climbing 3.25%. OPEC and Russia are still expected to hold a videoconference today on supply cuts. It remains to be seen if they can actually reach a deal, how deep agreed cuts may be, how long any cuts could last, if the US may get dragged in to provide support in some way (could be something on the side like sanctions relief).

In currency action today, the US Dollar is steady relative to other majors, including the Canadian Dollar. Gold is up 2.0%, trading near $1,720/oz.

New Video: Market Commentary and Portfolio Update – April 8, 2020

With Jeremy Fehr – Founder and CEO, Paul Vendrinsky – Portfolio Manager and Ted Bader – President of SIA Wealth Management

Click Here to watch a new webinar of Jeremy Fehr, founder of SIACharts and SIA Wealth, discussing current trends in world markets, and the impact going forward. Paul Vendrinsky, Portfolio Manager discusses the recent performance of the five funds which SIA Wealth sub-advises on for BMO Global Asset Management. SIA Wealth President Ted Bader discusses investment strategies related to the portfolios that SIA Wealth Management sub-advises for BMO Global Asset Management. A PDF version of the presentation is available.

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