June 24, 2020
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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428
Coming off an all-time record intraday high for the NASDAQ yesterday, stock markets around the world have been dropping back as markets digest the occasion. Rising coronavirus case counts, particularly in the US, have also led investors to pause and consider whether reopenings could be slowed or in some areas, partially dialed back.
US index futures are down 0.25%-0.75% this morning. Dow futures are down about 190 points, giving back all of yesterdayâ€™s 131-point gain and a bit more. Over in Europe, the FTSE is down 2.0% and the Dax is down 1.65%. Crude oil is also backsliding today. WTI is down 2.0% and has slipped back under $40.00/bbl ahead of weekly DOE oil inventories due at 10:30 am EDT. Copper is down 0.4%.
Gold continues to attract a tailwind from global monetary stimulus which reduces the value of paper money relative to hard assets. Last night the Reserve Bank of New Zealand kept its Official Cash Rate at 0.25%, continued its asset purchase program and indicated it remains ready to use additional tools if needed. On this news, gold is up 0.25% trading above $1,775/oz.
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