For investors, the current instability in the global banking sector is increasingly feeling like a game of Whack-A-Mole, just as one problem area gets shored up, another problem pokes its head up. Just as concerns over banks in the US and Switzerland have eased, Deutsche Bank is down 11.3% in US premarket trading today and dragging the Dax down to a 2.5% loss as its credit default swap prices jumped indicating increased investor concern about its finances.

US index futures are currently down 0.7% to 1.0% giving back yesterday’s US index gains of 0.25% to 1.00%. Overseas, the FTSE is down 1.9%, while the Hang Seng fell a more moderate 0.6%.

With a combination of rising interest rates around the world and ongoing instability surrounding the health of the banking system, capital continues to flee toward defensive havens, and commodities continue to struggle with the potential that resource demand could weaken in the coming months. Gold is once again bumping up against the $2,000 round number, while the Japanese Yen is up 0.6%. WTI Crude Oil is down 3.75%, while Copper is down 1.25%.

Flash PMI reports from around the world have been mixed. For the most part, Flash Manufacturing Reports have been running between 45 and 50, slightly into contraction territory and slightly below analyst expectations.   Flash Service Reports have been running between 50 and 55, slightly into expansion territory and slightly above analyst expectations. Japan was relatively stronger, while Australia and the UK were relatively weaker. US Flash Manufacturing (street 47.0) and Flash Service (street 50.5) reports are due at 9:45 am EDT.

Other economic news has been mixed. Retail Sales for Canada (1.4% vs street 0.7%) and the UK (1.2% vs street 0.2%) in February beat street expectations. On the other hand, US Durable Goods Orders (-1.0% vs street +0.6%) were disappointing.

SIA Wealth In The Media:

Chief Market Strategist Colin Cieszynski appeared on BNN Bloomberg where he spoke about renewed interest in SIA Wealth Management’s tactical investing strategy, comparative analysis process, relative strength, and the recent resurgence in Gold plus the Japanese Yen.

When the financial system gets rocky, gold becomes a safe haven for capital: Chief market strategist

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Colin Cieszynski, Chief Market Strategist

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

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