A Busy Week Starts With a Chinese Interest Rate Cut

Overnight, the People’s Bank of China capped off another weekend of summer surprises with a surprise 0.1% interest rate cut to 3.35%. In response to the news Hong Kong rallied 1.25%, while Shanghai fell by 0.6%. The reaction from other major Asia Pacific markets and commodities was bearish, however, indicating that investors view interest rate cuts not as a victory over inflation but as a sign of a weakening economy. Tokyo and Seoul both lost 1.1% overnight, while Sydney fell 0.5%. In commodity action, US Crude Oil is down 0.6%, while Copper is down 1.4%.


Europe is off to a more positive start to the week with the Dax and CAC both climbing 1.25%, while the FTSE is up 0.75%. US index futures are trying to bounce back from Friday’s selloff with Dow futures up 0.1% and NASDAQ futures up 1.0%.  Gold is up 0.3% hanging around $2,400/oz.

Monetary policy remains in the spotlight this week. The Bank of Canada meets on Wednesday to decide whether to cut its benchmark rate again or go one and done on cuts like the ECB did last week. Their decision, and their outlook for the North American economy may provide some insight into whether the Fed may cut interest rates this summer and how many rate cuts investors can really expect for this year.

There are a number of notable economic reports out this week, including Flash PMI numbers on Wednesday, US Q2 GDP on Thursday, US Core PCE inflation on Friday, and North American housing data through the week.  

Earnings season ramps up and broadens out this week. The US calendar is headlined by Big Auto (Tesla, General Motors* and Ford), Big Tech (Alphabet, IBM, Qualcomm), Transports (airlines and railroads), Big Industry (3M, Honeywell), Amazon.com, and others.

Earnings season really starts in Canada this week. Headliners include Suncor Energy, Cenovus Energy, Canadian National Railway, Rogers, Celestica*, Bombardier*, Loblaws (first quarter with potential impact of consumer protests),  Canfor, West Fraser, Eldorado Gold, and others.

*Shares of General Motors, Celestica and Bombardier are held in portfolios managed by SIA Wealth Management.

Share:

Read More:

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.

Sign up for the Morning Minutes

Today’s earnings reports and market activity, delivered right to your inbox.

  • Bow Valley Square 4, 250 - 6th Avenue SW, Suite 1510, Calgary, AB T2P 3H7
  • PH: (403)744-5190
  • TF: (844)744-5190
  • [email protected]

Copyright © SIA Wealth Management Inc. 2024, All Rights Reserved.

Disclaimer
Privacy Policy