Morning Minutes 8/12/2020

Morning Minutes

Stocks and Oil Rally While Gold and Silver Keep Sliding

August 12, 2020

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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
ccieszynski@siawm.com
+1 (647) 282-4428

Shrugging off yesterday’s US afternoon swoon, stock markets are on the rise again this morning. US Index futures are up 0.7%-0.9% so far today with Dow futures rising about 240 points. In Europe today, the Dax is steady while the FTSE is up 1.1%. Chinese markets were mixed overnight with Hong Kong climbing 1.4% and Shanghai falling 0.6%.

The biggest overnight development came from the political arena, where the presumptive US Democratic Presidential candidate Joe Biden announced California Senator Kamala Harris as his running mate. This decision cleared up uncertainty over the selection and ended the risk of someone historically antagonistic to Wall Street such as Sen. Elizabeth Warren, being picked.

In economic news, US weekly API oil inventories fell another 4.4 mmbbl this week. WTI Crude oil is up 1.6% on the news, while copper is down 0.4% today. Gold and silver remain under pressure as investor confidence improves, falling 0.4% and 3.0% respectively.

In corporate news, Tesla announced plans for a 5-for-1 stock split and Moderna announced it has received a $1.5B order for 100 million doses of its in-development COVID-19 vaccine from the US government.  Later today, earnings reports are due from Macys and Cisco Systems, while Canadian Tire and Cineplex report tomorrow.

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