Morning Minutes

Quadruple Witching Day and Flash PMI

morning-minutes-featured-image-internet-650x400

Share:

Facebook
Twitter
LinkedIn
Email
Print

US index futures are down again this morning with declines of 0.4% to 0.8% adding to Thursday’s US index losses of 2.2% to 3.2%. Investors still appear to be reeling from yesterday’s disappointing US national retail sales and industrial production reports plus poor regional manufacturing surveys from New York and Philadelphia. Major European markets are also down across the board with the FTSE falling 1.1% and the Dax down 0.5% as investors continue to react to yesterday’s hawkish comments from the ECB. Signs of a slowing economy appear to be dragging on energy contracts today with WTI Crude Oil down 2.4% and Natural Gas down 7.2%.  

Today is Quadruple Witching Day when a multitude of index and single stock futures and options all expire, which could be adding to recent volatility as investors square positions. It’s tax loss selling season and with equity markets still down significantly year to date, that may not be helping the situation either.

Flash PMI reports, the first peek at Manufacturing and Service economies from around the world have been rolling out overnight. For the most part, numbers have been coming in between 47.0 and 52.0 suggestive of a slight contraction or slight expansion. Japan, Germany and the Eurozone were slightly better than expected, Australia was slightly worse than last month while France and the UK were mixed. The UK had the most notable number, a flash Manufacturing PMI disappointment (44.7 vs street 46.3). Ominous signs for the UK economy also appeared in a disappointing retail sales report (-5.9% over year vs street -5.6%).

In North America today, Canada new house price growth slowed again in November (4.1% vs previous 5.1%). US Flash Manufacturing PMI (street 47.7) and Flash Service PMI (street 46.8) are due at 9:45 am EST today.

Interestingly, earnings reports that have come out overnight and this morning have generally been coming in better than expected with Adobe ($3.60 vs street $3.50, up 5.1% premarket) the biggest name, and recreational vehicle producer Winnebago ($2.07 vs street $1.82), perhaps the most interesting name considering the state of the economy.

Cryptocurrencies are getting hammered again with Bitcoin dropping 2.5% and Ethereum falling 5.0%. Accounting firm Mazars Group announced it is pausing work for all of its crypto related clients including Binance and crypto.com.  

Subscribe to the Morning Minutes:

Today's earnings reports and market activity, delivered right to your inbox.

Colin Cieszynski, Chief Market Strategist

Colin Cieszynski, CFA, CMT
Chief Market Strategist
ccieszynski@siawm.com
+1 (647) 282-4428

Read More

Legal and Regulatory Disclosures

Terms and Conditions:
This information is for Investment Advisors only. The website is for informational purposes only and is not intended to provide a complete description of SIA Wealth Management’s products or services. Past performance is not indicative of future results. It should not be construed as investment advice or relied upon in making an investment decision. Products and services of SIA Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. The information contained in this Website does not constitute an offer or solicitation by anyone to buy or sell any investment fund or other product, service or information to anyone in any jurisdiction in which an offer or solicitation is not authorized or cannot be legally made or to any person to whom it is unlawful to make an offer of solicitation. All products and services are subject to the terms of each and every applicable agreement. It is important to note that not all products, services and information are available in all jurisdictions outside Canada.

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. SIA Wealth Management Inc. 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.

INTERNET EXPLORER NOTICE