Morning Minutes

September Starts Soft on China, Manufacturing, and Employment News




US stock markets were unable to hold on to their early gains yesterday and the three main indices finished the month with losses of 0.6%-0.8%. Bears have increasingly gained the upper hand overnight and into this morning. Asia Pacific trading saw Sydney fall 2.3%, Hong Kong retreat 1.8% and Tokyo lose 1.5%. In Europe this morning, the Dax, CAC and FTSE are all down 1.0%-1.2%. The three main US index futures contract are down 0.2%-0.6% so far today.

New lockdowns in China, this time in the city of Chengdu, appear to be raising concerns that resource demand could slow and dragging on sentiment toward commodities. Crude oil is down 1.6%, natural gas is down 0.5%, copper is down 1.6% and platinum is down 1.2%. Meanwhile new US restrictions on the export of high end semiconductors to China and Russia has some semiconductor stocks in retreat this morning including Nvidia, down 4.0% premarket, and AMD, down 2.4% premarket.  

Monthly Manufacturing PMI reports have been rolling out overnight and into this morning with mixed results. On the positive side, France climbed back up above 50 into expansion territory, while Japan remained above 50 and beat expectations. The UK and Spain remained below 50 but were not as bad as investors anticipated. On the negative side, Germany remained below 50 and weakened more than expected.

Canadian Manufacturing PMI (street 53.6 vs previous 52.5) is due at 9:30 am EDT. The US ISM Manufacturing PMI report is due at 10:00 am EDT. Investors may look at a number of components to the US report including the headline number (street 52.0), new orders (street 48.5), and prices paid (street 55.5).

While awaiting tomorrow’s US nonfarm payrolls report today’s US employment reports, weekly initial jobless claims (232K vs street 248K) and Challenger layoffs (20.4K vs previous 25.8K), were better than expected and/or showed improvement. US construction spending (street -0.1%) is due at 10:00 am EDT.    

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
+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.