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Energy Rally, China Data, and Inflation Numbers In Focus

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Disappointing economic numbers out of China overnight weighed on Asia Pacific markets overnight as Hong Kong plunged 1.8%, Tokyo lost 0.5% and Sydney slipped 0.3%. Talk of increased casino regulation in Macau, meanwhile, has weighed on casino stocks around the world.

Chinese retail sales (2.5% vs street 7.0% and previous 8.5%), industrial production (5.3% vs street 5.8% and previous 6.4%), and fixed asset investment (8.9% vs street 9.0% and previous 10.3%), all slowed even more than investors expected.

Surprisingly, this news has not negatively impacted commodity prices. Usually China-sensitive copper is up 0.4% today. Energy contracts are soaring today with natural gas up 3.3%, WTI crude oil up 1.4% and gasoline up 1.2%. These gains appear to be related to a bigger drawdown in weekly API oil inventories (-5.4 mmbbls vs previous -2.9 mmbbls) likely due to ongoing disruption in US Gulf of Mexico production from Hurricane Ida being quickly followed by Hurricane Nicholas. US DOE weekly oil inventories (previous -1.59 mmbbls) are due at 10:30 am EDT this morning.

US index futures are flat to up 0.1% as investors digest yesterday’s losses of 0.4% to 0.6% for US indices and we continue to work through September. Inflation reports are dominating this morning’s economic calendar with consumer price numbers out from Canada (4.1% vs street 3.9% and previous 3.7%), and the UK (3.2% vs street 2.9% and previous 2.0%) both showing that price pressures continue to build, adding to the case for central bank tapering.

In the US this morning, the Empire State Manufacturing Survey came in a lot stronger than expected (34.3 vs street 18.0). US industrial production is due at 9:15 am EDT (street 0.5% vs previous 0.9%).

SIA Wealth In The Media:

Chief Market Strategist appeared on BNN Bloomberg where he discussed current market trends, risks, inflation and sector rotation.

Wages are creeping up which is a sign of lasting inflation: Market strategist

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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