SIA Wealth Morning Minutes Banner

EXECUTIVE ORDERS, EARNINGS REPORTS AND CENTRAL BANKS IN FOCUS

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

US index futures are once again pointing toward a moderately positive open for the North American trading day with gains of 0.2% to 0.4%. Meanwhile, European indices are essentially steady trading between -0.2% and +0.2%. Commodities are also mixed today with copper climbing 0.7% but WTI crude oil sliding 0.3% and natural gas continuing this weeks’ plunge with a 2.6% drop.

The US dollar continues to weaken relative to the Euro and Pound, the Loonie is steady consolidating yesterday’s gains, and gold is still refusing to take advantage of US Dollar weakness indicating that investor confidence remains high and interest in haven assets remains low.  Three central bank meetings (Bank of Canada, European Central Bank and the Bank of Japan) over the last 24 hours all had similar messaging. Although the short-term outlook for their economies remains challenging amid the latest round of lockdowns, central bankers are also seeing the potential for recovery as the year progresses as vaccine rollouts accelerate and economies reopen. Because of this while central bankers remain committed to their current emergency stimulus programs (low interest rates and asset purchases), none seemed ready to hit the panic button and add more stimulus.

Its Day 2 of the Biden Administration, and the focus for new executive orders appears to be on fighting COVID with 10 new executive orders planned related to improving vaccine distribution and accelerating manufacturing of masks, and medical equipment. Meanwhile over in the Senate, the focus is on confirmation hearings for the Biden cabinet with one approval done and a vote on Treasury Secretary nominee Janet Yellen expected tomorrow.

In US economic news, initial jobless claims (900K vs street 910K), continuing claims (5.0M vs street 5.4M), and housing starts (1.66M vs street 1.56M), and the Philadelphia Fed manufacturing survey (26.5 vs street 12.0) all exceeded expectations.

Earnings continue to roll out this morning headlined by strong results from insurer Travelers ($4.91 vs street $3.18), and worse than expected losses from United Airlines (-$7.00 vs street -$6.60). After the close today, results are due from IBM, Intel and Union Pacific.

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