Morning Minutes

Selloff Continues With China Trade Data and Rising Rates In Focus

oil-and-gas

Share:

Facebook
Twitter
LinkedIn
Email
Print

Investor’s fearful mood didn’t improve over the weekend. Continuing from where they left off last Friday, equity markets around the world have started the week in full reverse with Tokyo plunging 2.5%, London losing 1.8% and Frankfurt falling 1.5%. US index futures are also falling sharply with Dow futures down 1.3% and NASDAQ futures down 2.3%.

China sensitive markets have been hit particularly hard today following the release of trade numbers that showed a significant slowdown in export growth, even though it wasn’t quite as bad as investors had feared (3.9% vs street 3.2% and previous 14.7%).  With fears of a Chinese economic slowdown increasing, markets sensitive to China have been crushed overnight including a 3.8% plunge for the Hang Seng, a 1.2% drop for Australia’s S&P/ASX, and a 1.0% drop for the Australian Dollar. Worries about Chinese resource demand have been weighing on commodities with copper falling 2.8% and WTI crude oil dropping 2.6%.

Meanwhile, with concerns about potential runaway inflation continuing to increase, the US 10-year treasury note yield has decisively blasted through 3.00% on its way to the 3.15%-3.20% area. This has sparked another rally for the US Dollar which is up at least 0.2% against the Loonie, Euro, Yen and Pound. The greenback is also up 1.1% against Gold, but it is the cryptos that are getting really crushed with Bitcoin and Ethereum plunging 4.8% and 6.4% respectively, indicating that capital continues to flee risk markets.

It’s a lighter week for economic news with the main events being Chinese and US inflation numbers Wednesday-Thursday. US earnings season downshifts to smaller and mid-sized companies but several seniors in Canada are expected to report this week including Suncor tomorrow, Manulife and Sun Life on Wednesday (plus Disney in the US), and Canadian Tire plus Canada Goose on Thursday.

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