Equity Retreat Resumes With Earnings And Upcoming China Data In Focus

A broad-based selloff in global equity markets has been underway overnight and into this morning. Asia Pacific markets led the way downward with Hong Kong losing 2.1%, Sydney and Seoul losing about 1.1% and Tokyo slipping 0.8%. Major European markets are down across the board with Frankfurt, London, Paris and Milan all down 0.2%-0.4%. Downward momentum appears to be continuing into North America with US index futures falling 0.3%-0.6% as Americans return to trading from a long weekend.

The US 10-year treasury note yield has climbed back up above 4.00%, while the 10-year German bund yield has climbed back up above 2.20%. A series of comments from European Central Bank officials at Davos and elsewhere this week have suggested that while central banks appear to be shifting from hawkish to neutral, the shift to dovish (rate cuts) may not come as quickly as investors had hoped at the end of 2023. The US Dollar has also been on the rebound, gaining 0.5%-0.8% against the Euro, Pound, Yen, and Gold. The Loonie is down 0.2% against the Greenback. Commodity action is mixed today with US Crude Oil up 0.5%, but Natural Gas down 8.7%. Copper is up 0.8% this morning.

Today’s economic data appears indecisive and troubling at the same time. In the US, the Empire State Manufacturing Index fell off a cliff (-43.7 vs street -5.0 and previous -14.5). Canada housing starts beat expectations (249K vs street 243K) Canada consumer prices sent mixed signals with headline inflation increasing as expected  (3.4% in-line vs  previous 3.1%), while Core CPI continued to ease (2.6% vs previous 2.8%).  Tomorrow is a busy day for economic reports headlined by retail sales reports for the US and China, plus China GDP and UK inflation.  

Earnings season resumed today, headlined by mixed results from investment banks as Goldman Sachs ($5.48 vs street $3.62) soundly beat expectations while Morgan Stanley ($0.85 vs street $1.07) missed significantly. A number of US regional banks also report over the next few days including a miss from PNC Financial ($1.85 vs street $2.12) this morning.  

Share:

Read More:

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.

Sign up for the Morning Minutes

Today’s earnings reports and market activity, delivered right to your inbox.

  • Bow Valley Square 4, 250 - 6th Avenue SW, Suite 1510, Calgary, AB T2P 3H7
  • PH: (403)744-5190
  • TF: (844)744-5190
  • [email protected]

Copyright © SIA Wealth Management Inc. 2024, All Rights Reserved.

Disclaimer
Privacy Policy