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A Positive Start To A Big Week For Market News

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Continuing a rebound which started late last week, equity markets around the world are off to a positive start this week. US index futures plus the FTSE and the Dax are all up 0.3%-0.4%. Asia Pacific markets were even stronger with the Nikkei gaining 1.8% and the Hang Seng climbing 1.0%.

The US Dollar continues to give back some of its recent gains, which has sparked a number of significant rebounds across currency and commodity markets. For example, WTI and Brent crude oil are both up 3.1% today, natural gas is up 1.4%, copper is up 1.9%, and the oil-sensitive Canadian Dollar is up 0.8%. Cryptocurrencies are also on the rebound with Bitcoin climbing 3.7% and regaining $50,000, while Ethereum is up 5.5%. Gold is lagging a bit with a 0.5% gain and remaining stuck below $1,800/oz.

Although the last two weeks before Labor Day are a time when many people are on vacation, it’s turning out to be a busy time for business news. Today, flash PMI reports for August, the first look at how selected economies are doing so far this month, are out today. Overall, results for Japan and Europe are still in moderate expansion territory in the low 50s for Japan and 55-62 for European countries, but the numbers have been slightly worse than street expectations overall, suggesting that the Covid Delta wave may be having a small impact on business conditions. US flash Manufacturing PMI (street 62.8 vs previous 63.4) and flash Service PMI (street 59.4 vs previous 59.9) numbers are due at 9:45 am EDT today.

On the corporate side, investors in the US are looking to the FDA, who is widely expected to give full commercial approval to the Pfizer-BioNTech COVID vaccine this week. Ride sharing companies like Uber and Lyft and related delivery stocks like DoorDash are under pressure in premarket action as battles over whether their drivers count as employees or independent service providers continue to rage in US courts.

In Canada, investors are awaiting bank earnings week which starts tomorrow with results from the Bank of Montreal and the Bank of Nova Scotia. The May to July period was a volatile and uneven one for the Canadian economy between lockdowns and staggered reopenings so results could be distorted. Investors may continue to look to loan loss provisions as an indicator of the health of the banks’ businesses.

Starting on Thursday, the Fed is holding its annual Jackson Hole Symposium, a forum where Fed chairs have historically signaled changes to monetary policy direction. This year, investors may look to comments from current chair Powell, for indications of whether the US central bank is planning to start reducing asset purchases later this year or if it plans to keep the stimulus pedal to the metal into 2022.

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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