Equities Rise as Middle East Tensions Ease and Oil Retreats

The new trading week is off to a positive start for equities. Investors appear to be taking the absence of major new attacks in the Middle East as good news, supporting the potential for a negotiated settlement. Crude Oil and Treasury yields are down to start the week as traders speculate inflation pressures could start to ease if hostilities subside.

China inflation numbers were mixed. Consumer prices (0.7% v. Street 0.8%) were better than expected, while producer prices (5.7% v. Street 5.3%) were worse than expected.

US equity futures are higher, with NASDAQ futures up 0.7% and Dow futures up 1.0%. In Asia, the Nikkei gained 2.3%, while the Hang Seng declined 0.1% and the KOSPI fell 6.0%. In Europe, the DAX is up 1.1% and the FTSE is up 0.7%.

Commodities are mixed. Crude Oil is down 3.3%, falling toward $87.50/bbl, while Brent Crude is down 3.8%, falling below $95.00/bbl. Gasoline is down 2.5%, falling toward $2.70/gallon. Precious Metals are higher, with Gold up 1.5%, retaking $4,100/oz, and Silver up 1.5%. Copper is up 1.4%, trading above $6.30/lb.

In Rates, the US 10-year Treasury note yield is falling toward 4.85%, while the US 30-year Treasury note yield is falling toward 5.25%. The US Dollar Index is down 0.4%. The Euro is up 0.5% and the Loonie is up 0.2%.

Looking ahead, it is a quieter week for economic data, including China trade data tomorrow, UK GDP on Wednesday and US producer prices on Friday. Earnings season shifts this week to a large number of US small- and mid-cap companies, along with Canadian and international companies reporting.

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.