SIA Wealth Morning Minutes Banner

China Trade Data Boosts Asia Markets; US Dollar Bounces Back

Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on facebook
Facebook
Share on email
Email

North American markets return to trading this morning from the Labor Day weekend and the end of summer holidays. US index futures are flat to up 0.1%, the Dax and FTSE are both down about 0.2%.

In Asia Pacific trading, the Nikkei gained 0.9% while the Hang Seng gained 0.8%.  China reported a stronger than expected trade surplus overnight ($58.3B vs street $51.0B), with both export (25.6% vs street 17.1%) and import (33.1% vs street 26.8%) growth higher than expected. In Europe, the DAX and FTSE are down 0.2%

The US Dollar is on the rebound this morning, rallying 1.1% against gold, and climbing 0.4% against both the Canadian Dollar and the British Pound. This has put some pressure on commodities, which one would have commonly thought would do well on the positive China trade news. Copper and gasoline are both down 1.1%, WTI crude oil is down 1.3%, and natural gas is down 1.6%.

This week the main focus of economic news is on central banks. The Bank of Canada meets Wednesday with no changes expected during an election campaign. The European Central Bank meets on Thursday with investors looking for hints on whether the ECB is considering tapering its asset purchase program this year or continuing at the same pace into 2022. It’s a light week for earnings reports with a few numbers due from retailers including Gamestop in the US on Wednesday, followed by lululemon and Dollarama on Thursday in Canada.

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.

Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on facebook
Facebook
Share on email
Email

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

Keep Reading

INTERNET EXPLORER NOTICE