A volatile week for stock markets around the world appears to be heading for an upbeat finish with indices around the world rallying overnight. Asia Pacific trading saw the Hang Seng soar 3.0% while the Nikkei and the S&P/ASX both gained about 1.2%. In Europe today, the Dax and the FTSE are both up 1.9%. Cryptocurrencies are also bouncing back with Bitcoin up 1.2% and Ethereum up 2.7%. Coming off another down day for US indices, US index futures are also in the green so far today with Dow Futures up 0.9% and NASDAQ futures up 1.5%.
So far so good, but we also have seen this story before, most recently last Friday. Recall a week ago, stock markets bounced back from a difficult week on Friday on what turned out to be short covering and bargain hunting and then distribution resumed this week. The key questions for today then are whether bulls can mount enough support to keep the markets up through the day and if the bears take the day off today, do they come back again next week? In other words, a bounce appears to have started but it’s unclear if it’s sustainable or not.
Today is quiet for economic and earnings news but next brings the last hurrah of earnings season with results on the way from Canadian banks, US specialty retailers and Chinese online retailers. The World Economic Forum in Davos, Switzerland runs Sunday to Wednesday. The main economic news is Tuesday’s flash PMI reports, along with more housing data out of the US and Canadian retail sales.
New Video: SIA Wealth May Webinar Replay With Jeremy Fehr
A replay of SIA Wealth CEO, Jeremy Fehr’s recent presentation on the ongoing R&D advancements implemented into SIA Wealth’s Mutual Fund and ETF mandates over the past two years, which have helped SIA Wealth successfully manage the current volatile market environment, is now available.
YouTube Version: https://youtu.be/jKBRcskuqvc