Morning Minutes 9/17/2020

Morning Minutes

Stocks Slide With Central Banks and OPEC in Focus

September 17, 2020

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

Equity markets around the world have been backsliding overnight and into this morning as investors digest developments across a number of fronts. US index futures are down 1.0% (Dow) to 2.1% (NASDAQ) this morning, while in Europe, the Dax is down 0.75% and the FTSE is down 0.45%.

There have been three central bank meetings in the last 24 hours. The US Fed held monetary policy steady and issued mixed forecasts. FOMC members forecast that US interest rates are likely to remain very low through 2023, but at the same time, they upgraded their 2020 US GDP forecast to -3.7% from -6.5% in June and their 2020 unemployment rate forecast to 7.6% from 9.3% in June. Overseas, the Bank of Japan maintained stimulus but upgraded its economic outlook slightly. The Bank of England maintained policy as well but talk of exploring negative rates has knocked the pound down 0.6% against the US dollar today.

Crude oil prices are down slightly today with WTI falling 0.5% and Brent slipping 0.3%. Natural gas is down another 2.0%. Crews reportedly are starting to return to Gulf of Mexico production facilities now that Hurricane Sally has gone through and investors have turned their focus back to today’s OPEC meeting and an uncertain outlook for energy demand.


New Video: Market Commentary and Portfolio Update – September 16, 2020

With Ted Bader – President of SIA Wealth Management, Paul Vendrinsky – Portfolio Manager and Colin Cieszynski – Chief Market Strategist

A new webinar replay is available featuring Paul Vendrinsky, Portfolio Manager, discussing recent performance and activity in the five funds which SIA Wealth sub-advises on for BMO Global Asset Management and Colin Cieszynski discussing current trends in world markets.  A PDF version of the presentation is available.

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