December 10, 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
Major indices are holding steady again as investors digest a flurry of headlines coming in across a number of fronts.
The European Central Bank announced this morning that it is increasing its asset purchase program by another â‚¬500B in a bid to offset weakness coming from the latest round of lockdowns in Europe. The ECB may also be trying to offset any disruptions should EU-UK trade talks fail to reach an agreement by Mondayâ€™s deadline. The British Pound is selling off again today, falling 0.75% against the US Dollar while the Euro is up 0.2%. The FTSE is up 0.4% on the currency effect, while the Dax is down 0.2%.
In the US, IPOs have partying like its 1999 again this week. Yesterday after pricing its IPO at $102.00, above the projected $90.00 to $95.00 range, DoorDash shares soared on their opening trading day to close at 189.51. Today, AirBnB is set to make its trading debut after pricing its $47B Initial Public Offering at $68.00, above the $56.00-$60.00 range which had been projected by the company.
Thereâ€™s a lot happening on the political and vaccine fronts this week as well. In Canada, while lockdowns continue to deepen, Health Canada approved Pfizerâ€™s vaccine yesterday, with first administrations expected to start next week, and the Bank of Canada maintained is current monetary stimulus program.
In the US, the FDA is widely expected to approve Pfizerâ€™s vaccine today, and politicians in the House of Representatives have agreed on a short-term funding measure to put off a government shutdown for a week while they continue to negotiate a larger fiscal spending and support package. Several states have joined Texas in its legal challenge to the election results from four battleground states ahead of next weekâ€™s Electoral College vote.
US jobless claims came in worse than expected this week both in terms of initial claims (853K vs street 725K) and continuing claims (5.75M vs street 5.33M) suggesting that new lockdowns may be starting to take their toll on employment.
In this mixed news environment, US index futures are flat to down 0.5%. Commodities, however, are up this morning with WTI and Brent Crude Oil both gaining about 0.5% and copper climbing 0.2%. Gold is up 0.2% while Silver is up 0.6%.
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.