World Markets Digest Central Bank Talk and More Earnings Reports

Central bank speakers and earnings reports are in the spotlight this morning. Yesterday afternoon, Fed Chair Powell confirmed what rising treasury yields have been telling us for weeks, that the US is not making enough progress on inflation essentially suggesting that US rate cuts are likely to be postponed and continuing the theme of higher for longer interest rates. Today we may see if this is confirmed by other central bankers or not as two officials form the Bank of England, two officials from the European Central Bank, including President Lagarde, and three Fed officials are speaking at various times today. The Fed’s Beige Book report on regional economic and financial conditions is due at 2:00 pm EDT today. Ahead of all this, the US 10-year treasury note yield is holding steady above 4.60%.

Stock markets around the world have been mixed overnight. In Asia Pacific trading, Tokyo lost 1.3%, while Shanghai gained 2.1%. In Europe this morning, the Dax is up 0.5% and the FTSE is up 0.6%. US index futures are up 0.25%-0.35%.

Oil continues to backslide with US Crude sliding 0.7% back toward $85.00/bbl. Oil appears to have gone into a correction for the moment, based on recent soft China retail sales and industrial production data, and a larger build in this week’s US API oil inventories announced late yesterday, while waiting on Israel’s response to Iran’s weekend attack. Meanwhile, in other commodity action, Natural Gas is down 3.6%, while Copper is up 0.9%.

In currency action, the US Dollar is backsliding a bit relative to other majors like the Euro, Pound and Loonie. Gold is consolidating its recent gains near $2,400/oz, while cryptos have stabilized while waiting for developments related to a potential halving of Bitcoin.   

The market reaction to overnight earnings reports have been mixed. ADRs of semiconductor manufacturing equipment ASML are down 5.0% in premarket trading after beating on earnings but missing on sales. In transportation, United Airlines is up 5.2% premarket after bearing the street on earnings, while trucker JB Hunt is down 8.2% premarket after falling short of expectations. Insurer Travelers is down 3.4% premarket after missing on earnings as well. Later today, results are due from railroad CSX, Las Vegas Sands, and others.

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.