Morning Minutes

Bank of Canada Kicks Off Central Bank Week




The last full business week ahead of the two-week holiday season is looking to be a busy one with six of the largest central banks holding meetings, announcing monetary policy strategies and providing economic updates. The Bank of Canada kicks things off today with an announcement at 11:00 am EST followed by a speech from Governor Macklem at 11:30 am EST. Canada’s federal government and central bank are expected to announce an update on the nearly three-decade old mandate of using monetary policy tools to target a 1%-3% band for inflation (i.e. somewhere near 2%). Inflation has been running above this band for several months now so it’s unclear if any changes will be made or if a US-style employment component could be added.

The US Fed follows on Wednesday with its own decision where investors may find out if the US central bank is actually considering accelerating its new tapering program or not. FOMC member forecasts may also provide insight into when the US central bank is considering its first interest rate hike. The US 10-year treasury note yield has slipped back under 1.50%, suggesting investors aren’t expecting significant changes. Other central banks meeting later in the week include the ECB, Bank of England, Bank of Japan and the Swiss National Bank.

Several significant economic reports are also due this week, headlined by US and Chinese retail sales on Wednesday plus flash PMI reports, the first peek at December economic conditions, on Thursday. Inflation reports are also on the way from the US, UK, and Canada this week.

Earnings season is over but there are a few corporate developments of note. Technology stocks could be active today after the NASDAQ announced six additions/deletions to the NASDAQ 100 index starting next Monday, headlined by the additions of Airbnb and Palo Alto Networks*. Peloton is up 3.0% premarket after falling 5.4% on Friday as the company fights back against the negative publicity generated from a recent episode of the “Sex and the City” revival.

This morning finds US index futures slightly in the green between flat Dow futures and a 0.4% gain for NASDAQ futures as investors digest Friday’s US index gains of 0.6% to 0.9%. European markets are mixed with the Dax up 0.9% and the FTSE down 0.1%. The US Dollar is up a bit, gaining 0.3% against the Euro and the Loonie, and rising 0.2% against gold. Bitcoin is getting smashed again, falling 3.9% and dropping back under $50,000. Commodities are mixed today with natural gas jumping 3.3%, copper climbing 0.6% and WTI crude oil losing 0.7%.

*Palo Alto Networks is held in some portfolios managed by SIA Wealth Management.

Subscribe to the Morning Minutes:

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

Colin Cieszynski, Chief Market Strategist

Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

Read More

Legal and Regulatory Disclosures

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.