Morning Minutes 7/8/2020

Morning Minutes

Energy Inventories and Canada Fiscal Update In Focus

July 8, 2020

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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

It has been another quiet evening and morning for economic and corporate news, the most interesting part of which is that we are now well into confession season and there haven’t been any big preannouncements so far, neither positive, nor negative.

Chinese markets continued to climb overnight with Shanghai rising 1.75% and the Hang Seng climbing 0.6%. US index futures are steady this morning with gains of 0.1%-0.3%. European markets are off slightly with the Dax down 0.6% and the FTSE down 0.4%.

Energy and metals are on the rise today. WTI and Brent Crude oil are both up about 0.4% with WTI still trading above $40.00/bbl. Copper is up 0.1% while Gold is up 0.4%. US API oil inventories reported last night were up 2.0 mmbbl last week, today DOE oil inventories are due at 10:30 am EDT with the street expecting a 3.1 mmbbl drawdown.

Canadian economic announcements due over the course of this week could have an influence on trading in Canadian equities, bonds and CAD currency pairs. Canadian Ivey PMI had a big bounce in June back up through 50 and back into expansion territory rising to 62.9 from 42.1 in May. This afternoon, Finance Minister Morneau as expected to give a fiscal update, including the cost of all the fiscal stimulus unleashed in the last few months. Fitch Ratings recently downgraded Canada’s debt ratings on concerns over increased fiscal spending and rising debt levels. On Friday Canadian employment numbers for July are due.

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