Morning Minutes 10/28/2020

Morning Minutes

Stock Market Retreats Resume; Bank of Canada Preview

October 28, 2020

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

Stock markets around the world continue to crumble this morning with a witches’ brew of uncertainty over COVID Wave 2 and the potential for more new lockdowns combined with the US election continue to drive investors to the sidelines. Over in Europe, Frankfurt, Paris, and Milan are all down about 3.0% while London is down 1.8%. Coming off of a mixed Tuesday where bulls were unable to mount much of a counterattack, US index futures have turned downward again to the tune of 1.6% to 2.1% declines with Dow Futures falling nearly 600 points.

Once again positive earnings reports out of the US are being met with yawns from investors indicating that investors had already priced in expectations for strong results. Highlights of earnings reports from overnight and this morning include: Microsoft* ($1.82 vs street $1.54, down 2.3% premarket), UPS ($2.28 vs street $1.90, down 2.2% premarket). On the other hand, beleaguered General Electric has responded well to a positive earnings surprise ($0.06 vs street -$0.04, up 7.0% premarket). Results from Suncor Energy, First Quantum, MasterCard, Visa and Ford are due later today ahead of another flood of results tomorrow.

A busy 24 hours for central banks starts with the Bank of Canada releasing its latest monetary policy decision and statement at 10:00 am EDT, followed by a press conference at 11:15 am. The Bank is expected to hold interest rates steady at 0.25% but investors may focus on whether the bank feels encouraged enough about financial market or economic conditions to start (or hint toward) slowing down its asset purchase programs or some of the other emergency measures it implemented earlier this year. Tomorrow the Bank of Japan and the European Central Bank also hold regularly scheduled monetary policy decision meetings.

*Shares of Microsoft are held in some portfolios managed by SIA Wealth Management.


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SIA Wealth In The Media

Chief Market Strategist Colin Cieszynski recently appeared on BNN Bloomberg where he discussed the recent weakness in North American and European markets.

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