The first trading day of May finds many markets around the world in rally mode. US index futures are bouncing back from Friday’s 0.5%-0.8% declines with gains of 0.3%-0.6%. The US 10-year treasury note yield is steady near 1.65%. The UK is closed for a holiday but continental indices are climbing with Milan up 1.2%, Paris up 0.7% and Frankfurt up 0.8%.
Commodities are advancing this morning, with copper up 0.5% and WTI crude oil up 0.25%. Although India and some regions continue to struggle with COVID outbreaks, national and continental data from North America and Europe show that between vaccinations increasing and case counts falling, the latest wave appears to have peaked in many places, setting the stage and building anticipation for more potential reopenings heading toward the summer.
As is normal on the first day of the month, manufacturing PMI reports are dominating the headlines. Manufacturing PMI reports from several European countries, such as Germany (66.2 vs street 66.4) have come in slightly below expectations but still well into expansion territory. Canadian manufacturing PMI (previous 58.5) is due at 9:30 am EDT, followed by the US ISM manufacturing PMI report at 10:00 am EDT (street 57.1 vs previous 59.6).
US construction spending for March is also due at 10:00 am EDT today (street 2.0% vs previous -0.8%). The rest of the week brings a number of the usual start of month reports including ADP payrolls and Service PMI numbers Wednesday plus US nonfarm payrolls, Canada employment and China trade on Friday.
The week in earnings reports starts slow today with the main result so far being Estee Lauder ($1.62 vs street $1.32) joining the parade of companies crushing expectations. The rest of the week brings results from senior companies in a number of sectors including insurance, energy, pharmaceuticals, forest products, autos, movie theatres and ride sharing, plus an increasing number of reports from small and mid-cap companies.
SIA Wealth In The Media
Chief Market Strategist Colin Cieszynski recently appeared on Global TV News where he discussed the climb in the Canadian Dollar.