June 15, 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
The new trading week has commenced with stock markets around the world continuing to give back some of their recent gains. Reports of new coronavirus flareups in the US, China, India and elsewhere have raised worries of potential setbacks to the reopening of the world economy.
Overnight, China, one of the first countries to reopen, released disappointing retail sales (-2.8% over year vs street -2.0%) and industrial production (4.4% over year vs street 5.0%) reports for May, adding to concerns that a reopening rebound may be shallower, slower, and rockier than investors had been hoping
US Index futures are down 1.25% to 2.35% so far today with Dow futures down nearly 600 points, or all of Fridayâ€™s 477-point bounce and more. In Europe, the Dax and FTSE are both down about 1.1%. Crude oil is also under pressure again today with WTI down 3.25% and Brent falling 2.0%. The US Dollar is broadly gaining, while gold has dropped 1.3% toward $1,715/oz.
There are a few economic developments of note this week. Retail sales numbers are due for the US on Tuesday, followed by Canada on Friday. Tonight, the Bank of Japan meets with investors looking to see if more monetary stimulus could be forthcoming. Tomorrow Fed Chair Powell testifies to Congress and could give more color on the Fedâ€™s economic and monetary policy outlook, particularly on how long the central bank thinks it could take for the economy to recover.
Itâ€™s a quiet week for earnings reports overall. In Canada, results are due from some of the smaller retailers and restaurant chains. Cineplex reports on Thursday and may comment on its plans for the future as a still-independent company since Cineworld cancelled the planned takeover. Â In the US, homebuilder Lennar reports results Tuesday.
Disclaimer:Â 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.Â 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.