Morning Minutes

Market Declines Resume on Weak China Data as Relief Rally Fades




Friday’s big bounces in stock markets, commodities and cryptocurrencies have quickly come to an end. Friday’s enthusiasm has quickly dissipated as the new trading week begins and distribution appears to be resuming.

The main causes of this retreat appear to be ongoing recession chatter in the media over the weekend and particularly poor data out of China overnight. The latest round of lockdowns appear to have sent China’s economy into a sharp tailspin with retail sales (-11.1% vs street -6.0%) and industrial production (-2.9% vs street 0.7%) contracting a lot more than feared.

US index futures are down 0.15% to 0.50% this morning coming off of mixed overnight sessions that saw the Dax drop 0.6%, the FTSE flat, and the Nikkei gaining 0.4%. Cryptocurrencies have also turned back downward with Bitcoin falling 0.8% toward $30,000 and Ethereum falling 2.2% toward $2,000. Trading in energy and metals is indecisive today with WTI crude oil down 0.8%, natural gas up 1.5%, copper steady and gold down 0.2%.

The consumer economy dominates the business news schedule this week headlined by tomorrow’s US retail sales report and the start of US retailer earnings season with results due from Walmart and Home Depot. This week also sees results from additional major US retailers and housing numbers from the US and Canada.

SIA Wealth Market Outlook Webinar With Jeremy Fehr May 19 at 2:00 pm EDT

Please join us on Thursday, May 19 @ 12pm MT / 2pm ET for our monthly Market Outlook Webinar.

Join SIA Wealth CEO, Jeremy Fehr, as he discusses the ongoing R&D advancements implemented into SIA Wealth’s Mutual Fund and ETF mandates over the past two years, which have helped SIA Wealth successfully manage the current volatile market environment.

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Colin Cieszynski, Chief Market Strategist

Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

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