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Canada Tapering and Employment In The Spotlight

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Stock markets around the world are bouncing back this morning as some of the negative pressure of the last few days eases. US index futures are all up about 0.5%, erasing yesterday’s index losses. Overseas, the Hang Seng gained 1.9%, and the Nikkei climbed 1.25%, while in Europe, the Dax and the FTSE are both up about 0.4%. Some of the improvement in sentiment appears to be stemming from yesterday’s call between US President Biden and Chinese President Xi which investors seem have to taken as a sign that relations between the two countries have at least stopped worsening for now, with the potential for improvement.  

The Canadian Dollar has been climbing this morning, gaining 0.5% against the US Dollar. Investors have been responding favorably to yesterday’s monetary road map from Bank of Canada Governor Macklem. The Governor indicated that the central bank is planning to taper asset purchases further later this year to the point where it will just purchase enough bonds to offset natural decreases, keeping the overall balance sheet steady while it turns its focus to interest rate increases, potentially as soon as next year.

Supporting the Bank of Canada’s efforts to continue easing back on stimulus Canada added 90K jobs in August, just below the 100K street estimate and similar to July’s 94K increase. In the US, producer prices jumped 8.3%, more than the 8.2% street estimate and last month’s 7.8% indicating that inflation pressures continue to increase.

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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