Morning Minutes

Choppy Markets Consider Liquidation and Infrastructure Developments

Share:

Facebook
Twitter
LinkedIn
Email
Print

World markets are very mixed this morning as investors digest the implications of several significant developments over the weekend.

First off, press reports indicate that the selective selling which hammered some stocks late Friday including twin 25%+ plunges for US media companies ViacomCBS and Discovery were sparked by the margin call related liquidation of some positions held by a US hedge fund/family office called Archegos Capital Management. Two overseas banks who indicated exposure to Archegos, Credit Suisse and Nomura, both dropped more than 10% in overseas trading overnight.

It remains to be seen if this liquidation is a one-off development or a sign of a more widespread problem. Traditional defensive havens such as Gold, the VIX and the Japanese Yen are steady to down 0.5% this morning suggesting that there has not been a significant jump in fear so far. Overseas markets were mixed overnight led by gains of 0.7% for the Nikkei and 0.5% for the Dax, while the Hang Seng was flat and the FTSE is down 0.2%. US index futures are in the red this morning, sliding 0.2%-0.4% and giving back some of Friday’s gains that saw the S&P 500 reach a new all-time high.   

Infrastructure remains a hot topic this week with the Biden Administration preparing to announce a major infrastructure program. In Egypt, the container ship blocking the Suez Canal has been partially refloated but the logjam at a key choke point for global trade continues for now. Commodities are mixed this morning with WTI crude oil up 0.7% and copper down 0.4%.

It’s a short trading week with many markets closed on Good Friday. Wednesday is not only the last day of the month and quarter but also the fiscal year end for many companies in the investment industry and because of this, we could see rebalancing and repositioning driven trading over the next few days. US nonfarm payrolls are still scheduled to come out on Friday with significant results ahead of that including US ADP payrolls, Chicago PMI and Canada monthly GDP on Wednesday plus Manufacturing PMI reports from around the world on Thursday. Earnings reports of note this week include Blackberry, Lululemon and Carnival on Tuesday, plus Walgreens Boots on Wednesday.

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
ccieszynski@siawm.com
+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.

INTERNET EXPLORER NOTICE