With a huge week of central bank meetings and hawkish surprises behind us and with Americans having had a long weekend to digest all the recent developments, world markets, many of which had become quite depressed and possibly oversold last week, are bouncing back this morning as the US returns to trading.
US index futures are up 1.3%-1.4% even with the US 10-year treasury note yield creeping up toward 3.30%. Overseas, the Dax and FTSE are both up about 0.4%, while in Asia Pacific trading, the Nikkei and the Hang Seng both gained about 1.8%.
It’s another mixed day for commodity markets. WTI Crude Oil is up 2.2% as it tries to claw back some of Friday’s losses, but Natural Gas is down 4.75%. In metals action, Copper is up 0.5% but gold is down 0.2%. In currency trading today, the US Dollar has backed off a bit, enabling the Euro, Pound and Loonie to bounced 0.3%-0.5%. Cryptocurrencies also continue to rebound with Bitcoin up 4.5% this morning.
Canadian retail sales bounced back dramatically as the economy reopened back in April. Headline sales were up 0.9% over March, slightly better than the 0.8% street estimate. Retail sales excluding autos jumped 1.3% in April from the previous month, more than double the 0.6% street estimate. Canadian new house price growth slowed in May (0.5% vs street 0.8%). US existing home sales are due at 9:00 am EDT today (street 5.4M).
New Video: SIA Wealth June Market Outlook Webinar Replay
A replay of the SIA Wealth Market Outlook Webinar with Colin Cieszynski – Chief Market Strategist, answering the most asked questions we have received from advisors over the past month, including: defensive versus tactical investing strategies, the state of the economy and markets heading into summer, and past experience in US midterm election years – is now available.
YouTube Version: https://youtu.be/ZEhJwIrM9pk