December 31, 2020
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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428
A quiet holiday week capping off a tumultuous year for world markets appears to be heading for a mixed finish today. US index futures are essentially flat this morning, consolidating yesterdayâ€™s small gains. Over in Europe, markets are drifting downward with the Dax down 0.3% and the FTSE down 0.9%, the latter possibly being impacted by another rally for Sterling, which is up 0.25% against the US Dollar.
Asia Pacific trading was mixed overnight with Shanghai soaring 1.7% and Hong Kong climbing 0.3% while Sydney stumbled to a 1.4% loss and Tokyo fell 0.4%. Chinese markets attracted positive attention from Chinaâ€™s monthly PMI reports which featured a stronger than expected Non-Manufacturing report (55.7 vs street 52.4 and previous 56.4) along with a steady Manufacturing report (51.9 vs street 52.0 and previous 52.1).
Manufacturing PMI reports kick off the new year on Monday. Yesterdayâ€™s Chicago PMI, a regional report which investors look to as a potential leading indicator for the national numbers, was stronger than expected (59.5 vs street 57.0 and previous 58.2). Weekly US unemployment data was better than expected with both initial claimsÂ Â (787K vs street 803K) and continuing claims (5.21M vs street 5.39M) beating expectations.
Energy markets are mixed today with natural gas soaring 3.3% while WTI and Brent Crude oil are both down about 0.9%. In metals action, copper is down 0.7%, while gold and silver are both up about 0.2%.
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