Morning Minutes 9/15/2020

Morning Minutes

Stocks and Commodities Climb on Positive Economic News

September 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

Building on Monday’s 1.2%-1.8% gains for US indices, US index futures are up again this morning, climbing 0.6%-0.8%. Overseas, In Europe today, the FTSE is up 1.1%, the Dax is up 0.3%. Asia Pacific trading was mixed with Hong Kong gaining 0.4%, Shanghai climbing 0.5%, but Tokyo falling 0.4%.

Overnight economic news from around the world has generally been supportive for stocks. The US Empire State Manufacturing survey (17 vs street 6 and previous 3), indicated an accelerating recovery. Overseas, Chinese retail sales (0.5% vs street 0.0%), Chinese industrial production (5.6% vs street 5.1%), UK monthly jobless claims (73K vs street 100K) and the forward looking economic sentiment part of the German monthly ZEW investor survey (77.4 vs street 67.8) all beat expectations. US industrial production is due at 9:15 am EDT with the street expecting a 1.0% increase. Tomorrow brings US retail sales and the latest Fed decision, statement and FOMC member forecasts.

Commodities are also on the rise today with WTI crude oil up 1.5%, Brent Crude up 1.1% and copper climbing 0.4%. Energy gains come despite the International Energy Agency cutting its oil demand forecast for 2020 by 0.2 mmbbl/d to 91.7 mmbbl/d which was a smaller cut to a higher level than OPEC announced over the weekend (0.4 mmbbl/d cut to 91.2 mmbbl/d). Oil may remain active through the week with OPEC meeting on Thursday.

Disclaimer: 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. 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.