September 4, 2020
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428
Thursdayâ€™s US market downturn which saw the Dow decline 2.8%, the S&P slide 3.5% and the NASDAQ lose 5.0% has reverberated through world markets overnight. Asia Pacific trading saw Sydney plunge 3.0% while Hong Kong, Tokyo and Seoul lost about 1.1% each. In Europe this morning, the Dax is down 0.75%, while London, Paris and Milan are all flat.
Gold and silver are up 0.3% and the VIX is up 0.5%. Commodities continue to climb with WTI crude oil rising 0.4% and copper climbing 1.0%. This action suggests that investors are taking yesterdayâ€™s action as an equity market correction and not a change to the outlooks for the global economy or resource demand.
US index futures have turned back upward a bit in response to todayâ€™s mixed US employment report. Heading toward the long weekend, Dow futures are up 0.5%, while NASDAQ futures are down 0.3%.
Nonfarm payrolls increased by 1.37M positions last month, down from 1.73M in July and slightly less than the 1.40M the street had been expecting. The US unemployment rate plunged to 8.4% from 10.2% last month, which was significantly better than the 9.8% the street had been expecting.
Canadian job growth slowed to 245K in August from 418K in July and was short of the 275K the street had been expecting. The unemployment rate fell to 10.2% from 10.9% last month which was slightly worse than the 10.1% street estimate.