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Stock Slump Continues as Investors Await Earnings Season Start

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Stock markets around the world remained under pressure overnight as investors continue to grapple with the prospects for stagflation a period of low economic growth, highlighted by Friday’s poor US nonfarm payrolls report, and high inflation, highlighted by stronger than expected US wage growth and still-rising energy prices. This morning for example, WTI crude oil is up another 0.5% and trading above $80.00/bbl.

US index futures are trading flat to up 0.3% this morning, as they try to stabilize following yesterday’s 0.6%-0.7% declines for US indices. Over in Europe, the Dax and the FTSE are both down about 0.3%. Asia Pacific trading saw the Hang Seng drop 1.4% and the Nikkei fall 0.9%.

Markets have been drifting through a desert of limited business news but that changes tomorrow with the rest of this week being quite active with a number of potential developments which could move markets. US earnings season kicks off tomorrow with results from JP Morgan and Blackrock. Big US banks dominate the calendar for the rest of the week as well with Bank of America, Citigroup and Morgan Stanley reporting Thursday and Goldman Sachs plus Wells Fargo reporting on Friday. There are no major Canadian earnings reports this week.

Economic news picks up again tonight with trade numbers out of China, followed by inflation and retail sales reports for the US (consumer prices Wednesday, producer prices Thursday and retail sales Friday) and China over the rest of the week.  

Disclaimer: 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. SIAWM 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.

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At SIA Wealth Management everything we do is based on Relative Strength Analysis. We evaluate the Relative Strength between asset classes giving us insight into money flows on a large scale, and from this select top ranked investments.

Colin Cieszynski, Chief Market Strategist
Market Commentary:

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

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