Morning Minutes 5/22/2020

Morning Minutes

Trump and China in Focus as US Holiday Approaches

May 22, 2020

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

It’s the Friday before the US Memorial Day weekend (US markets are closed on Monday) traditionally the start of the summer driving/cottage/vacation season in the US. Heading into this holiday, market action is relatively subdued stateside with Dow futures up 52 points and NASDAQ futures down 2 points. Over in Europe, the Dax is up 0.4% and the FTSE is down 0.2% with the UK also closed for a holiday on Monday.

In North America, focus remains on getting the economy going again. US President Trump indicated that a second wave of COVID-19 would be dealt with by “putting out the fires” and not by another national shutdown. Meanwhile, outgoing Bank of Canada Governor Poloz suggested that while there remain risks, some of the more dire forecasts out there may be “a little bit overblown”.

Canada retail sales for March plunged by 10% as expected, but sales excluding autos fell by only 0.4%, much better than the 5.0% ex-auto plunge investors had anticipated.

Storm clouds continue to appear over Asia Pacific markets where the Hang Seng plunged 5.5% overnight, while Shanghai fell 1.8%, Tokyo sank 0.8% and China-sensitive Copper dropped 2.2%. China’s National People’s Congress kicked off a meeting by dropping its 2020 GDP forecast and introducing new Hong Kong security legislation which investors appear to be viewing as a crackdown. While China did indicate more fiscal support for companies and its intent to push forward with the Phase 1 trade deal with the US it signed earlier this year, relations remain strained with several countries, including the US and Australia. The US has moved forward with legislation that would force US listed companies to certify they are not controlled by a foreign government and increase oversight of accounting, which could potentially impact Chinese companies listed in the US.

 

New Video: Market Commentary and Portfolio Update – May 20, 2020

With Paul Vendrinsky-Portfolio Manager, Ted Bader-President, and Colin Cieszynski – Chief Market Strategist, of SIA Wealth Management

A new webinar replay is available featuring Paul Vendrinsky and Ted Bader updating on the recent performance of SIA Wealth Managed portfolios, plus  Colin Cieszynski discussing current trends in world markets. A PDF version of this presentation is available.

GoToMeeting Version: https://attendee.gotowebinar.com/recording/7172963578000213249

YouTube Version: https://www.youtube.com/watch?v=hXDa8eXJ9_0&list=PLT-eDegknjjzVdwP9q7KWGPwr0QmVwvNM&index=2&t=0s

 

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