Morning Minutes

US Indices Stabilize Despite More Signs on Increasing Inflation Pressures

cars

Share:

Facebook
Twitter
LinkedIn
Email
Print

Yesterday’s selloff in the US, which was sparked by higher than expected consumer price inflation which ignited concerns that interest rates may have to rise in future, sent shockwaves through world markets overnight. In Asia Pacific trading, the Nikkei and the Hang Seng plunged 2.5% and 1.8% respectively, while in Europe this morning, the FTSE is down 1.3% and the Dax is down 0.6%. Meanwhile, commodity markets have also been hammered with WTI crude oil down 2.0%, and copper down 1.0%.

Signs of growing inflation pressures in the US continue to emerge with the monthly producer price inflation price report showing price growth accelerating more than expected (6.2% vs street 5.9% and previous 4.2%). Signs of upward pressure on wages as the economy reopens have also emerged this morning with McDonalds announcing plans to increase hourly rates for employees at company owned restaurants in the US by 10% as it looks to hire 10,000 new employees in the coming months.  Meanwhile, the job market also continues to improve in the US with weekly initial jobless claims falling to 473K from 507K last week which was better than the 490K the street had expected.

With a tug of war on between positive employment data and concerning inflation data, US index futures have bounced up off of overnight lows and are currently mixed with Dow futures flat and NASDAQ futures up 0.6% following plunges of 2.0% for the Dow and 2.6% for the NASDAQ yesterday.

In earnings news today, Canada Goose beat street expectations on both earnings per share ($0.01 vs street -$0.09), and sales $208.8M vs street $137.7M).

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