Stock markets are steady to start the new trading week with US index futures plus the Dax, FTSE, Hang Seng and the Nikkei all flat to up 0.3%. Cryptocurrencies are getting knocked back down with Bitcoin falling 7.75% toward $55,000. Commodities are flat to lower WTI crude oil down 0.8% and copper holding steady. Gold and silver are bouncing back a bit, rising 0.4% and 0.8% respectively.
The future trend of interest rates may continue to be a hot topic this week with the US 10-year treasury note yield holding above 1.60%. The Fed is meeting on Wednesday to decide what to do about its monetary support programs. In addition to the usual decision and statement, the quarterly update to economic and interest rate forecasts from FOMC members is also due this time around. With traded interest rates on the rise, and the economy expected to improve as vaccines rollout and areas reopen, any statements or hints the Fed makes relative to whether it plans to continue or reduce monetary stimulus could have a significant impact on sentiment. The Bank of England and Bank of Japan are also meeting this week which may give more international color. Last week, monetary decisions were split between the Bank of Canada staying the course and the European Central Bank ramping up asset purchases to hold down interest rates.
The week in corporate news has started with a bang as Rogers Communications has agreed to purchase rival cable/wireless provider Shaw Communications in a $26B deal, valuing Shaw at $40.50 per share, a 69.4% premium to its Friday close of $23.90. It’s a relatively quiet week for earnings with the main events being results from FedEx and Nike both on Thursday.
In US economic news, the Empire State Manufacturing Index showed improvement and beat expectations (17.4 vs street 14.5 and previous 12.1). US President Biden is scheduled to speak at 1:45 pm EDT today. Tomorrow morning brings US February retail sales at 8:30 am EDT (street -0.5% vs previous 5.3%)
SIA Wealth Market Outlook Webinar Tuesday March 16, 2:00 pm EDT
Join SIA Wealth Management for an update on True Tacticaltm investing, insights into the recent performance of SIA Wealth Management portfolios and market insigts from SIA Wealth Founder and CEO Jeremy Fehr. Webinar audio will be available through computer VoIP or dial in using your phone.
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