Morning Minutes

Commodities Rebound as Investors Digest PMI Survey and Retail Sales Data




In the wake of yesterday’s big broad based global selloff across multiple asset classes, investors have been trying to pick up the pieces this morning. US index futures are trading up 0.2%-0.7%, trying to regain their footing from this week’s selloff that included drops of 1.0% to 1.8% for major US indices yesterday. Over in Europe, the Dax is flat and the FTSE is up 0.6%.

US treasury yields continue to climb with the 1-year yield approaching 5.50% and the 10-year yield approaching 4.50%. This has kept pressure on bonds, and also paper currencies with the Euro and Pound plus the Canadian and Australian Dollars all down 0.3%-0.5% today.

Energy and metals markets, however, are bouncing back this morning. WTI Crude Oil  is up 1.1% and Natural Gas is up 1.6% with the oil price regaining $90.00/bbl. In metals action, Platinum is up 2.3%, Copper is up 0.7% and Gold is up 0.3%.

Results from overnight Flash PMI survey results, the first peek at September economic conditions suggest a growing split between different sectors of the economy. Echoing yesterday’s dismal Philadelphia Fed Manufacturing Survey, Flash PMI reports for Australia, Japan, Germany, France and the Eurozone indicated a weakening global Manufacturing sector and a strengthening global Service sector. The UK, however, had the opposite trend with Manufacturing strengthening and Services weakening. Flash Manufacturing (street 48.0) and Flash Service (street 50.6) reports for the US are due at 10:00 am EDT.

Retail sales excluding autos for Canada came in stronger than expected (1.0% vs street 0.4% and previous 0.1%), although the headline number was a bit soft. UK retail sales reported earlier today were worse than feared (-1.4% vs street -1.2% and previous -3.1%), but not quite as bad as last month.

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
+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.