Morning Minutes 6/8/2020

Morning Minutes

Stocks Keep Climbing, Oil Backslides as OPEC+ Deal Reached

June 8, 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
+1 (647) 282-4428

Crude oil prices have paused their advance this morning as last week’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 Friday’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 Friday’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 Fed’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.

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.