Summer arrives today and it seems like some investors are already on vacation. US index futures and major European indices like the Dax and FTSE are all flat today. The most notable overnight equity market moves were a 2.0% decline in the Hang Seng and a 1.3% drop for Shanghai. Crude Oil and Gold are also pretty much flat, while Copper is down 0.6%, falling in tandem with China-sensitive markets.
Fed Chair Powell testifies to Congress today and four other senior Fed officials are speaking as well. Investors may look to these for any signs of whether last week’s “hawkish hold” has changed and if anyone breaks from the party line.
Canada new house prices (0.1% vs previous -0.2%) and Canada retail sales (1.1% vs street 0.2% and previous -1.4%), both came in stronger than expected, another indication of both a robust North American economy, and sticky inflation. UK consumer and retail prices increased more than expected, keeping pressure on the Bank of England to potentially raise interest rates again, as is widely expected, at its meeting tomorrow.
Although we are in between earnings seasons there are still a few companies here and there reporting results. FedEx is down 2.6% this morning despite beating the street on EPS ($4.94 vs street $4.85), with traders focusing more on soft sales and flat sales guidance.
SIA Wealth In The Media:
Chief Market Strategist Colin Cieszynski appeared on BNN Bloomberg today where he spoke increasing bullish equity market breadth, and the influence of higher inflation on the price of gold.