Global market action has been mixed overnight and into this morning. Bouncing back from small declines yesterday, US Index futures are up 0.4%-0.8% this morning, but in Europe, the Dax is down 0.6% and the FTSE is down marginally. Commodities are down again this morning with WTI crude oil falling 0.2% and copper dropping 2.5% after Norway’s Norges Bank announced a 0.50% interest rate hike to 1.25%, indicating that central banks around the world remain hawkish and focused on getting inflation under control.
Flash PMI reports from around the world, the first look at June economic conditions have been mixed so far. For the most part, manufacturing and services reports have been in the low to mid 50s indicating a slightly expansionary world economy. Results from Australia were better than expected, the UK and Japan were split relative to expectations, while Germany and France came in slightly below expectations. US Flash Manufacturing (street 56.0 vs previous 57.0) and Flash Service (street 53.5 vs previous 53.4) PMI numbers are due at 9:45 am EDT today.
The main event of the business news calendar for the week arrives this afternoon with stress test results for big US banks due at 4:30 pm EDT after market close. While positive results could help to shore up investor support, the ability of banks to withstand economic or monetary headwinds could also give the Fed the green light to continue raising interest rates. On the other hand, any signs of mounting difficulties could raise a whole other set of questions.
SIA Wealth In The Media:
Chief Market Strategist Colin Cieszynski recently appeared on BNN Bloomberg today where he discussed current market conditions, the summer outlook, and investing strategies in a rising interest rate environment. We are growing our cash position: Colin Cieszynski
New Video: SIA Wealth June Market Outlook Webinar Replay
A replay of the SIA Wealth Market Outlook Webinar with Colin Cieszynski – Chief Market Strategist, answering the most asked questions we have received from advisors over the past month, including: defensive versus tactical investing strategies, the state of the economy and markets heading into summer, and past experience in US midterm election years – is now available. YouTube Version: https://youtu.be/ZEhJwIrM9pk
– By Colin Cieszynski, CFA, CMT, Chief Market Strategist, SIA Wealth Management
