December 3, 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
Stock markets around the world are steady this morning as investors digest a flurry of overnight developments. The Nikkei, Dow Futures (still just under 30,000) and S&P futures (coming off an all-time high close) are flat. NASDAQ futures are up 0.3%, the Hang Seng rose 0.7% and the Dax is down 0.5%.
Todayâ€™s main event so far is the start of the OPEC+ meeting which was postponed from Tuesday as several major producing countries continue to haggle over whether or not to continue with planned supply increases scheduled for January, slow them down or extend current supply cuts. OPEC leaders didnâ€™t get anywhere this week so now the wider group is taking a crack at it. WTI and Brent crude oil are both down 0.2% this morning as investors await a decision.
Meanwhile in the US, budget/stimulus talks continue ahead of the Friday December 11th deadline to avert a government shutdown.
Canadian bank earnings week wraps up today with more positive results. Both TD Bank ($1.60 vs street $1.27) and CIBC ($2.79 vs street $2.52) posted adjusted EPS well above analyst expectations. Both banks attributed their strong results to a great quarter for their capital markets divisions, steady results from Canadian banking and smaller loan loss provisions while noting struggles at their international businesses.
Employment news continues to move into the spotlight as the week progresses. Offsetting yesterdayâ€™s disappointing ADP payrolls, todayâ€™s US unemployment reports came in better than expected both for initial jobless claims (712K vs street 775K and previous 787K) and continuing claims which fell below 6.0M to 5.5M which was better than the 5.9M street estimate. Tomorrow, US nonfarm payrolls (street 481K vs previous 638K) and Canada jobs (street 20K vs previous 63K) are scheduled for release at 8:30 am EST.
Disclaimer:Â 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.Â 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.