June 8, 2020
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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428
Crude oil prices have paused their advance this morning as last weekâ€™s investor anticipation of an OPEC+ deal to extend production cuts meets the weekend announcement of a one-month extension to the end of July. Reportedly the deal reins in cheating on quotas and makes allowances for Libya returning to production from recent shutdowns.
Stock markets around the world continue to bask in the afterglow of Fridayâ€™s surprise rebounds in US and Canadian employment, stoking anticipation of a significant rebound as economies reopen. New York is scheduled to start Phase One of its reopening plan today.
Dow Futures are up about 225 points or 0.8% this morning, looking to add to Fridayâ€™s 829-point, 3.1% pop, while S&P futures are up 0.5%, and NASDAQ futures are down marginally. Overseas markets were steady overnight with the Dax, FTSE and Hang Seng all gaining about 0.1%. Defensive havens which dropped on Friday have stabilized or bounced back this morning with the Japanese Yen up 0.2% and gold up 0.7% but still just short of the $1,700/oz level.
For the most part, its a quiet week for economic and corporate news which may keep the focus on economies and sectors continuing to reopen. The Fedâ€™s latest monetary policy decision, economic projections and statement are due on Wednesday afternoon. The US central bank is expected to hold interest rates steady, but investors may look for hints of whether cuts into negative territory are possible or if additional stimulus may be necessary, which could impact investor sentiment. Several Canadian retailers report results on Wednesday and Thursday including Dollarama, Roots and Lululemon.
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