2024 Opening Selloff Widens As The US Dollar Strikes Back

The downward momentum from yesterday’s 1.6% selloff in the NASDAQ has carried through overseas markets overnight and into this morning and has broadened out into other asset classes as well. In Asia Pacific trading, Sydney fell 1.3%, Seoul dropped 2.3% and Hong Kong lost 0.8%. Major European bourses are down across the board with London and Frankfurt down 0.6%-0.9%, while Paris and Milan are down 1.2%-1.4%. US index futures are currently down 0.2%-0.6%.

Just as a big drop in treasury yields over the last two months provided a tailwind for equities, a rebound in yields this week that has seen the US 10-year treasury note yield climb back up close to 4.00%, has provided a headwind for stocks. It also has sparked a broad-based resurgence in the US Dollar against other currencies. Today, cryptocurrencies are taking a big haircut with Bitcoin down 5.4% and Ethereum down 6.1%. Gold is down 1.0%, Silver is down 2.3%. the Aussie Dollar is down 0.5%, and the Euro plus the Loonie are down 0.2%. Commodity action is mixed with Copper down 1.0%, Crude Oil up 0.7% and Natural Gas up 1.6%.

Minutes from the last FOMC meeting are due at 2:00 pm EST today, but since the results of that meeting have likely already been fully priced in, the ISM US Manufacturing PMI report due at 10:00 am may attract more attention from investors. Yesterday, Canadian and US S&P Global Manufacturing PMI reports were disappointing, as was weaker than expected growth in US Construction Spending. In addition to the headline Manufacturing PMI number (street 47.1), investors may look to the New Orders component for an indication of economic momentum, and to the Prices Paid component for an indication on what is happening with inflation.

Terms and Conditions:

This information is for Investment Advisors only. The website is for informational purposes only and is not intended to provide a complete description of SIA Wealth Management’s products or services. Past performance is not indicative of future results. It should not be construed as investment advice or relied upon in making an investment decision. Products and services of SIA Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. The information contained in this Website does not constitute an offer or solicitation by anyone to buy or sell any investment fund or other product, service or information to anyone in any jurisdiction in which an offer or solicitation is not authorized or cannot be legally made or to any person to whom it is unlawful to make an offer of solicitation. All products and services are subject to the terms of each and every applicable agreement. It is important to note that not all products, services and information are available in all jurisdictions outside Canada.

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. SIA Wealth Management Inc. 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.