Morning Minutes

Stocks Slide as Rates Rise, China Data Mixed




Investors have returned from the Easter weekend in a mixed mood. European indices are on the rise this morning with the Dax up 0.6% and the FTSE up 0.2%. On the other hand, US index futures are down 0.1% to 0.6%, adding to last Thursday’s declines.

Chinese markets were mixed overnight following mixed economic news. Hong Kong gained 0.6% but Shanghai fell 0.5%. The biggest impact of recent lockdowns appeared in a disappointing retail sales report (-3.5% vs street -1.6% and previous 6.7%). On the other hand, Q1 GDP (4.8% vs street 4.4%), fixed asset investment (9.3% v street 8.5%) and industrial production (5.0% vs street 4.5%) all beat expectations.

Traded interest rates continue to climb with the US 10-year treasury note yield breaking through 2.8% today to reach its highest level since late 2018. This move appears to have put a headwind in front of stocks, and a tailwind behind the US Dollar. The most interesting action today is a 1.1% gain for gold which once again is approaching $2,000/oz, and a 2.2% decline for Bitcoin, suggesting some investors are positioning defensively.

Commodity action finds natural gas soaring 3.8% today and trading above $7.50/mmbtu, while WTI crude oil is up 0.4% and trading near $107.50/bbl. Copper is down 0.75% but platinum is up 1.75% and silver is up 2.75%.  

A big week for earnings reports has started positively with Bank of America beating expectations ($0.80 vs street $0.75) with results boosted by strong traditional banking and a reduction in loan loss provisions. Senior companies across multiple US sectors including Technology, Banking, Mining, Drilling, Airlines, Railroads and more report results this week, headlined by Netflix tomorrow and Tesla on Wednesday.

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.