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A Big Miss for the US and a Big Beat For Canada In Employment Growth

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Bulls and bears have been battling this morning over how to react over a shockingly weak US nonfarm payrolls report. In the first few minutes of trading after the 8:30 am EDT data release time, the three main US index futures contracts went from being up 0.2%, to being down 0.2%, to being up 0.3% on average. Quite the roller coaster so far.  

Investors have responded negatively so far to today’s very split North American employment reports. US nonfarm payrolls missed expectations badly (194K vs street 500K) although an upward revision to the August report (to 366K from previous 235K) offset that a bit. Wage inflation pressures continue to increase (4.6% as expected vs previous 4.3%). In Canada, job growth in September accelerated and crushed expectations (157K vs street 60K and previous 90K).

Overseas market action has been mixed today North American employment reports. Asia Pacific markets continued to rebound with the Nikkei gaining 1.3% and the Hang Seng rising 0.5%. European indices are mixed with the FTSE flat, the Dax down 0.1% and the CAC down 0.3%.  

Energy prices are on the rise again today with WTI crude oil up 0.6% trading near $78.75/bbl and natural gas up 1.4% trading near $5.75/mmbtu. Platinum is up 2.0% in what could be a positive sign for the auto sector, while copper is down 0.1% and gold is up 0.2%.  

Canadian housing starts (previous 260K) are due at 9:15 am EDT. Yesterday Canadian Ivey PMI crushed expectations (70.4 vs street 60.7 and previous 66.0), perhaps reflecting the positive impact of rising energy prices for the oil patch and the broader economy.  

Disclaimer: 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. SIAWM 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.

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At SIA Wealth Management everything we do is based on Relative Strength Analysis. We evaluate the Relative Strength between asset classes giving us insight into money flows on a large scale, and from this select top ranked investments.

Colin Cieszynski, Chief Market Strategist
Market Commentary:

Colin Cieszynski, CFA, CMT
Chief Market Strategist
ccieszynski@siawm.com
+1 (647) 282-4428

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